Eric Schmidt took to the pages of the Wall Street Journal to defend his company against attacks from people like Rupert Murdoch, and explain why it’s not Google’s fault that newspapers are in trouble.
His key points:
- Technology is a good thing. Sure, we all use PCs now, but with mobile phones or tablets coming down the road you’ll be able to create a new product. That product will have new advertising and new revenue opportunities.
- Stop blaming Google! Schmidt quotes Rupert Murdoch, saying it is “complacency caused by past monopolies, not technology, that has been the real threat to the news industry.”
- Google doesn’t make any money on news either. It has ads next to its news results, but they aren’t that lucrative.
- It’s easy to block sites from a Google search.
- Google is not taking content. Google shows a headline and a line or two of text, then sends people to a website.
- Google send billions of people to websites each day. If newspapers can figure out how to monetise those people, that’s the newspapers problem.
Eric Schmidt wraps up his essay the way he started it, emphasising the importance of new technology:
I certainly don’t believe that the Internet will mean the death of news. Through innovation and technology, it can endure with newfound profitability and vitality. Video didn’t kill the radio star. It created a whole new additional industry.
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