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Google’s Schmidt: ‘Frustrated Newspaper Execs Just Looking For Someone To Blame’

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At this point, the paywall issue has been skewed, by much reporting out there, in to a facile Murdoch-vs-Google (NSDQ: GOOG) face-off. Now Google is fighting a potentially lingering perception that it doesn’t play fair with news…

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Google News manager Josh Cohen gave an interview to Guardian.co.uk and, of all papers, the WSJ gives CEO Eric Schmidt op-ed space to go on another defensive: “With dwindling revenue and diminished resources, frustrated newspaper executives are looking for someone to blame... The claim that we’re making big profits on the back of newspapers misrepresents the reality ... The revenue generated from the ads shown alongside news search queries is a tiny fraction of our search revenue.

And on the attack: “It’s understandable to look to find someone else to blame. But as Rupert Murdoch has said, it is complacency caused by past monopolies, not technology, that has been the real threat to the news industry.”

Of course, Schmidt doesn’t pass up the opportunity to make his usual case that Google can help news publishers: “We send online news publishers a billion clicks a month from Google News and more than three billion extra visits from our other services, such as Web Search and iGoogle. That is 100,000 opportunities a minute to win loyal readers and generate revenue—for free.”

But his other language toward the recent critics is some of the tersest yet, showing how Google has had to come out fighting, at least for the moment.

And we may have reached a point in the debate where Schmidt’s main olive branches in the op-ed - Google’s underwhelming Fast Flip experiment, a promise of mobile news to come and a reminder that publishers can always de-index themselves using robots.txt - may not be enough to rise above the current Murdoch-vs-Google din.

Dec 3, 2009 6:38 AM ET

Eric Schmidt Photo: Corbis News


Posted In: Media & Publishing, Newspapers, Online News, Companies, Google, News Corp.

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