Google CEO Suggests Micropayments, Subscriptions Might Take Off for Online News

The Associated Press did some saber-rattling in San Diego yesterday at the annual convention of the Newspaper Association of America, and today Google CEO Eric Schmidt delivered his riposte.

In a keynote speech, AP chairman William Dean Singleton had vowed to more aggressively enforce the AP’s intellectual property rights. He said the wire service will “work with portals and other partners who legally license our content” but will take “legal and legislative remedies against those who don’t.” Singleton added, “We can no longer stand by and watch others walk off with our work under misguided legal theories.”

Schmidt, who has described journalism as a central tenet of democracy, suggested in a keynote address of his own today that the solution to the massive problems that news organizations now face lies in innovation, and in studying the way people are accessing and using information “in the cloud.”

While it’s difficult to plan for innovation, Schmidt says it’s possible to “architect a structure where innovation is welcome, and we’re starting to see that now with a new form of computing, called cloud computing.”

In cloud computing, Schmidt says, the computer servers in the network do most of the data storage and computer processing. “In this new model,” Schmidt says, “the network is always there, always reliable. All you have to do is pick up a phone, a netbook, a PC, what have you.”

The Internet has created a quandary for news organizations around the world. On the one hand, moving the news online has made it vastly more accessible. But in the process,  newspaper advertising and classified revenues have plunged, exposing

Author: Bruce V. Bigelow

In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here. Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University. Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.