FTW Media

Thoughts about New/Social Media

Google’s Eric Schmidt on news media biz model

with 3 comments

Google’s CEO Eric Schmidt recently gave a talk to newspaper publishers where he told them two very important things. The first is that the correct business model for news media is advertising not paid subscriptions. Secondly, that you’d better not piss off your customers.

So, how does he think newspaper publishers can make money online? In a word, advertising.

Schmidt said ads will get better and more interactive. Instead of simply showing text about an espresso maker, he said, they’ll display pictures and come with e-commerce tools. “Advertising that is useful is going to work,” he said.

Far too many news sites do things that irritate the hell out of their readers, usually in a misguided attempt to either protect their print product or to protect their intellectual property. To this, Schmidt says:

“From our perspective, we look at this pretty thoroughly and there is always a tension around fair use… I would encourage everybody, think in terms of what your reader wants. These are ultimately consumer businesses and if you piss off enough of them, you will not have any more.”

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Written by Oon Yeoh

April 8, 2009 at 5:02 am

Posted in New Media

3 Responses

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  1. who designed the masthead? me loves it.

    graceshu

    April 8, 2009 at 5:23 pm

  2. I wish we could take credit for it, but I plucked it out from some random Tumblr post. Or was it found on Digg? It’s just a placeholder instead of the default graphic of that Anime-looking character WordPress gives you. But thanks for the compliments!

    John Lim

    April 9, 2009 at 6:37 pm

  3. tsk tsk tis misleading! u lacketh the attribution… 😛

    graceshu

    April 15, 2009 at 7:16 pm


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