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Google launches newspaper subscription service

by Sarah Griffiths on 17 February 2011, 08:59

Tags: Google (NASDAQ:GOOG)

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Subscription stand-off?

Google has launched a digital magazine and newspaper subscription service just one day later than Apple, but it is thought the search giant's proposition might prove a better deal for publishers.

Chief exec of Google, Eric Schmidt, trumpeted Google One Pass at a German university yesterday and said that Google would pocket a 10 percent share of the cash generated from its newest service with 90 percent going to the publishers, The Daily Telegraph reported.

Google's model is therefore more favourable to content providers than Apple's recently launched offering, which sees the firm grab 30 percent of subscriptions bought via iPad and iPhone apps.

In an added bonus, Google will also reportedly hand over the names and email addresses of readers to publishers, who want them to help generate advertising for their publications, while Apple has said it will not share customers' details.

Schmidt reportedly said: "You've got a very publisher-friendly approach; we basically don't make any money on this. The most important thing is to get the money to people who are producing high-quality content."

He apparently clarified that Google will not profit from the new service and the 10 percent will simply cover costs. This could lead some people to speculate about Apple's lucrative margins.

Importantly, publishers using Google One Pass can set their own prices and terms for their digital content, according to a Google blog post.

"With Google One Pass, publishers can maintain direct relationships with their customers and give readers access to digital content across websites and mobile apps," it added.

Readers who buy from a One Pass publisher can access content on tablets, smartphones and websites using one sign-on, while publishers get flexibility over how their content is presented.

Google said they can customise how and when they charge for content and experiment with different pricing models, "offering subscriptions, metered access, "freemium" content or even single articles for sale from their websites or mobile apps."

The service will also let publishers give their existing print subscribers free or discounted access to digital content, while Google takes care of the payment via Google Checkout.

"Our goal is to provide an open and flexible platform that furthers our commitment to support publishers, journalism and access to quality content," it said.

The service is available in Canada, France, Germany, Italy, Spain, the U.K. and the US. It has been reported that Google has been working on the service for a while but brought the launch forward following Apple's announcement and 30 percent ask.



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