Google slits the throat of providers

Google is back in the business of running small text ads on the pages of its Google News service. This has always has been a lighting rod between the company and some struggling newspapers. It has been more than six years since Google has done this. Newspapers blasted Google for building a competing news site using headlines and snippets from newspaper articles. Google has watched their own revenue sharply in recent months as they look to keep the Google ship on course. Google News automatically collects headlines and article snippets from more than 4,500 news sites and sends users who click on those excerpts to the sites where the articles originally appeared. The service drives significant traffic to many sites. This move by Google to update Google News has put them in a position to compete with news publishers directly. Google has an agreement with AP for content and how they use it, but the do not have such a thing with Reuters. The way it works Google sells ad space on the page for articles searched for a topic like politics. This page features article from over 4500 newspapers, but before the click on the story they may see an ad for Washington Review Magazine. The problem for the newspapers is the fear advertisers will want to be on the Google page that is viewed with all the newspaper stories as opposed to a newspaper website that be a click of this page with maybe a one in thirty change of being viewed.

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