Microsoft and News Corp., the news company that runs the Wall Street Journal of the US and also The Sun of the UK, may be in the process of entering into a pact. But this pact has an unusual twist to it. Microsoft wants the news agencies to opt out of Google search and instead go with Bing. What’s the catch? Microsoft is going to pay these news companies to go with Bing.
In a recent CNN news article it also states:
One website publisher approached by Microsoft said that the plan “puts enormous value on content if search engines are prepared to pay us to index with them”.
Microsoft’s interest is being interpreted as a direct assault on Google because it puts pressure on the search engine to start paying for content.
“This is all about Microsoft hurting Google’s margins,” said the web publisher who is familiar with the plan.
Google responded with this:
Matt Brittin, Google’s UK director, told a Society of Editors conference that Google did not need news content to survive. “Economically it’s not a big part of how we generate revenue,” he said.
I believe this is what Microsoft and News Corp. do not understand. Google doesn’t need the news companies as bad as the news companies need Google. Microsoft has never been able to get above 10% of the market when it comes to search. They can spend all of the millions of dollars they want, but Google is just well liked by the Internet community.
With that being said, this will be beneficial to Microsoft and News Corp in the long run. Some people will opt in for the paid content and may switch over to Bing. But the majority will stay with Google and continue to look for the free news.
The only way these newspapers will survive is if they find a way to shutdown the Internet! LOL