Often, we confuse winning with being the best. This isn't always the case. There are plenty of ways to get ahead when you don't have the top product on the market. The smoke-filled backroom meetings may be a thing of the past, but the net effect lingers. This is exactly what went down, according to a Reuters report, when Microsoft (MSFT) had a chat with News Corp (NWS).
Microsoft suggested a relationship with News Corp which would involve the latter's yanking its news sites from Google (GOOG) ... for a fee, of course. This would cost the search engine giant -- which is also a news aggregation giant -- access to some hefty publications, including the Wall Street Journal, the Sun and the New York Post.
News Corp reportedly kicked off the discussions, which are still early in the process. This isn't without precedent, since Microsoft has run this idea by other publishers.
Rupert Murdoch has made rumblings this year about taking more content into the paid realm, and it seems he still hasn't figured out how to beat back the online and free news sources. Google is obviously a major threat to the status quo, so finding a partner in weakening its hold on the web is a natural play. Microsoft, of course, is looking to win Bing some market share and derail Google's continued growth. If search engine ownership of News Corp's sites is a zero-sum game, a deal would be a clear win for Microsoft.
Nothing's been signed yet, and the talks are still private. The big question, though, is whether ownership of the News Corp relationship -- even ownership of news search and aggregation -- would put a meaningful dent into Google's market share. It could be an interesting niche, but it probably won't change the world.
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Reader Comments (Page 1 of 1)
11-24-2009 @ 10:38AM
Newser said...
If Newcorp opts out of Google, it will open the doors to newer, more modern news organizations that have already adapted to the web and know how to make money. These sources will replace that content and Newscorp will go the way of the horse and buggy.
11-23-2009 @ 10:09AM
dspohn23 said...
This will definitely help me from accidently reading the drivel that News Corp's sources publish.
11-23-2009 @ 10:08AM
scrraceman said...
Just another ploy because of googles OS
11-23-2009 @ 5:24PM
Michael Baun said...
This is a world changer. The advertising content will occur on the news sites and advertising revenue will be made on both sides in a fashion favoring the news media - currently they get crumbs off the table. After one clicks on the link adsense type functionality then inserts an advertisement that is bid on the google side of things not the media side. Adsense is targeted from the search engine side. That can all change now.
Move over Bing, Google and whoever else wants to control the web - the media is making a come back!
11-23-2009 @ 10:42AM
billcham44 said...
Maybe google will just buy News Corp.
11-23-2009 @ 11:00AM
Michael Baun said...
This is the beginning of a vast change in the search engine/media conflict. Currently search engine providers effectively steal the intellectuall property of others to make money - and leave nothing on the table in return.
Murdoch is correct that these people know the law. Alternative news sources are derived content from real news sources - they know they are thieves - and it will stop.
What Murdoch will be able to do is change the web to media oriented revenue - like it should be - instead of leach search engine providers like Google making all the money off the media empire.
Google has been predatory leaving hardly anything on the table for the media. Time for the cookie jar to slam on Google's hand and reward the people who made the web possible in the first place - not the supposedly "Do no evil" hypocrites.
The media will own its own search engines, both Bing and Google will be has beens within 5 years. The media is about to do a body slam while Google gloats over its easily won victories.
It is not over for the media, they will rise again! Murdoch is not a stupid man - he and the entire media has a comeback - own the media and the search engines! Winner take all!
We are about to see a giant battle between media and search ownership. Wake up and smell the coffee, we are about to leave Google land. Things are going to get very interesting.
11-23-2009 @ 11:26AM
clebrowns said...
Michael Baun - How old are you? You sound very out of touch and you don't seem to understand how the internet works. Google does not steal anything. All search engines just point users to where they can find content. If a website wants Google not to search its site, it is very easy, all they have to do is modify a single file on their site. I agree that the current mode of web search will not last forever. However we do disagree, Search is continuing and will continue to get even bigger. When News Corp tries to sell their content online, and delists from the largest search engine, they will be massively decreasing their readership. Murdoch is not stupid, but he will be left behind.
11-23-2009 @ 12:32PM
Zach said...
Don't do it Microsoft! Don't stray to the dark side!
Nothing owned by Rupert Murdoch produces real news, they just write variations on his opinions about things. Google and Microsoft would be better off having no association with him.
11-23-2009 @ 12:38PM
Michael Baun said...
clebown - Fact is that google benefits more than the media outlets, that media is not getting the value on investment they deserve. I think this is obvious. And it is also equally obvious to this "out of touch" commenter that they will do what they can to change this. It is true they are not stealing it - I did say effectively stealing it and I agree with this. Besides the model of automatic opt in with voluntary opt out is not the way an ethical company would do things. The content is not theirs by default unless someone says they may use it - instead of claiming it and saying - well if you tell us not to we will lay off. Think what would happen if people violated copyright that way. Also look at the way google uses images for news sources - it is totally unfair.
As you may have guessed I am Murdocks side and believe that his strategy is much grander then most investors are capable of understanding. He is taking the war to his turf now. Google does not stand a chance.