News Publishers Go To War With the Internet — and We All Lose

Around the world, news industry trade associations are corruptly cashing in their political capital — which they have because their members are newspapers, and politicians are scared of them — in desperate acts of protectionism to attack platform companies. The result is a raft of legislation that will damage the internet and in the end hurt everyone, including journalists and especially citizens.

As I was sitting in the airport leaving Newsgeist Europe, a convening for journalists and publishers [disclosure: Google pays for the venue, food, and considerable drink; participants pay their own travel], my Twitter feed lit up like the Macy’s fireworks as The New York Times reported — or rather, all but photocopied — a press release from the News Media Alliance (née Newspaper Association of America) contending that Google makes $4.7 billion a year from news, at the expense of news publishers.

Bullshit.

The Times story itself is appalling as it swallowed the News Media Alliance’s PR whole, quoting people from the association and not including comment from Google until hours later. Many on Twitter were aghast at the poor journalism. I contacted Google PR, who said The Times did not reach out to the person who normally speaks on these matters or anyone in the company’s Washington office. Google sent me their statement:

These back of the envelope calculations are inaccurate as a number of experts are pointing out. The overwhelming number of news queries do not show ads. The study ignores the value Google provides. Every month Google News and Google Search drives over 10 billion clicks to publishers’ websites, which drive subscriptions and significant ad revenue. We’ve worked very hard to be a collaborative and supportive technology and advertising partner to news publishers worldwide.

The “study” upon which The Times (and others) relied is, to say the least, specious. No, it’s humiliating. I want to dispatch with its fallacies quickly — to get to my larger point, about the danger legacy news publishers are posing to the future of news and the internet — and that won’t be hard. The study collapses in its second paragraph:

Google has emerged as a major gateway for consumers to access news. In 2011, Google Search combined with Google News accounted for the majority (approximately 75%) of referral traffic to top news sites. Since January 2017, traffic from Google Search to news publisher sites has risen by more than 25% to approximately 1.6 billion visits per week in January 2018. Corresponding with consumers’ shift towards Google for news consumption, news is becoming increasingly important to Google, as demonstrated by an increase in Google searches about news.

And that, ladies and gentlemen, is great news for news. For as anyone under the age of 99 understands, Google sends readers to sites based on links from search and other products. That Google is emphasizing news and currency more is good for publishers, as that sends them readers. (That 10-billion-click number Google cited above is eight years old and so I have little doubt it is much higher now thanks to all its efforts around news.)

The problem has long been that publishers aren’t competent at exploiting the full value of these clicks by creating meaningful and valuable ongoing relationships with the people sent their way. So what does Google do? It tries to help publishers by, for example, starting a subscription service that drives more readers to easily subscribe — and join and contribute — to news sites directly from Google pages. The NMA study cites that subscription service as an example of Google emphasizing news and by implication exploiting publishers. It is the opposite. Google started the subscription service because publishers begged for it — I was in the room when they did — and Google listened. The same goes for most every product change the study lists in which Google emphasizes news more. That helps publishers. The study then uses ridiculously limited data (including, crucially, an offhand and often disputed remark 10 years ago by a then-exec at Google about the conceptual value of news) to make leaps over logic to argue that news is important on its services and thus Google owes news publishers a cut of its revenue (which Google gains by offering publishers’ former customers, advertisers, a better deal; it’s called competition). By this logic, Instagram should be buying cat food for every kitty in the land and Reddit owes a fortune to conspiracy theorists.

The real problem here is news publishers’ dogged refusal to understand how the internet has changed their world, throwing the paradigm they understood into the grinder. In the US and Europe, they still contend that Google is taking their “content,” as if quoting and linking to their sites is like a camera stealing their soul. They cannot grok that value on the internet is concentrated not in a product or property called content — articles, headlines, snippets, thumbnails, words — but instead in relationships. Journalism is no longer a factory valued by how many widgets and words it produces but instead by how much it accomplishes for people in their lives. I have tried here and here and in many a meeting in newsrooms and journalism conferences to offer this advice to news publishers — with tangible ideas about how to build a new journalistic business around relationships — but most prove incapable of shifting mindset and strategy beyond valuing content for content’s sake. Editors who do understand are often stymied by their short-sighted publishers and KPIs and soon quit.

Most legacy publishers have come up with no sustainable business strategy for a changing world. So they try to stop the world from changing by unleashing their trade associations [read: lobbyists] on capitals from Brussels to Berlin to London to Melbourne to Washington (see: the NMA’s effort to get an antitrust exemption to go after the platforms for antitrust; its study was prepared to hand to Congress in time for its hearings this week). These trade associations attack the platforms without ever acknowledging the fault of their own members in our current polarization in society. (Yes, I’m talking about, for example, Fox News and other Murdoch properties, dues-paying members of many a trade association. By our silence in journalism and its trade associations in not criticizing their worst, we endorse it.)

The efforts of lobbyists for my industry are causing irreparable harm to the internet. No, Google, Facebook, and Twitter are not the internet, but what is done to them is done to the net. And what’s been done includes horrendous new copyright legislation in the EU that tries to force Google et al to have to negotiate to pay for quoting snippets of content to which they link. Google won’t; it would be a fool to. So I worry that platforms will link to news less and less resulting in self-inflicted harm for the news industry and journalists, but more important hurting the public conversation at exactly the wrong moment. Thanks, publishers. At Newsgeist Europe, I sat in a room filled with journalists terribly worried about the impact of the EU’s copyright directive on their work and their business but I have to say they have no one but their own publishers and lobbyists to blame.

I am tempted to say that I am ashamed of my own industry. But I won’t for two reasons: First, I want to believe that the industry’s lobbyists do not speak for journalists themselves — but I damned well better start hearing the protests of journalists to what their companies are doing. (That includes journalists on the NMA board.) Second, I am coming to see that I’m not part of the media industry but instead that we are all part of something larger, which we now see as the internet. (I’ll be writing more about this idea later.) That means we have a responsibility to criticize and help improve both technology and news companies. What I see instead is too many journalists stirring up moral panic about the internet and its current (by no means permanent) platforms, serving — inadvertently or not — the protectionist strategies of their own bosses, without examining media’s culpability in many of the sins they attribute to technology. (I wish I could discuss this with The New York Times’ ombudsman or any ombudsman in our field, but we know what happened to them.)

My point: We’re in this together. That is why I go to events put on by both the technology and news industries, why I try to help both, why I criticize both, why I try to help build bridges between them. It’s why I am devoting time and effort to my least favorite subject: internet regulation. It is why I am so exasperated at leaders in my own industry for their failure to recognize, adapt to, and exploit the change they try to deny. It’s why I’m disappointed in my own industry for not criticizing itself. Getting politicians who are almost all painfully ignorant about technology to try to define, limit, and regulate that technology and what we can do with it is the last thing we should do. It is irresponsible and dangerous of my industry to try.