HOME
          
LATEST STORY
What’s the right news experience on a phone? Stacy-Marie Ishmael and BuzzFeed are trying to figure it out
ABOUT                    SUBSCRIBE
Feb. 16, 2011, 11:15 a.m.

Take that, Cupertino! Google undercuts Apple’s subscription plan with a cheaper one of its own

Back in 2009, we broke word that Google was working on an e-payment solution for publishers that would be based on its Google Checkout platform. Google’s proposal (pdf) to the Newspaper Association of America said that the company’s “vision of a premium content ecosystem includes”:

• Single sign-on capability for users to access content and manage subscriptions

• Ability for publishers to combine subscriptions from different titles together for one price

• Ability for publishers to create multiple payment options and easily include/exclude content behind a paywall

• Multiple tiers of access to search including 1) snippets only with “subscription” label, 2) access to preview pages and 3) “first click free” access

• Advertising systems that offer highly relevant ads for users, such as interest-based advertising

Google’s got plenty of targeted advertising options (#5), and First Click Free is old hat by now (#4). But Google took a big step toward fulfilling the rest of that vision (#1, #2, and #3) today with the announcement of Google One Pass, “a payment system that enables publishers to charge consumers for articles and other content.” And coming on the heels of Apple’s less-than-publisher-friendly subscription announcement yesterday, Google’s alternative may seem like a breath of fresh air.

First, Google is selling flexibility. No requirement to offer the same deal through a Google One Pass payment system as through other means — which means bundling with print subscriptions is a whole lot simpler than with Apple. Print customers can enter a coupon code to get free access to a website. Want to try a metered model, or experiment with putting more, less, or different content behind a paywall? No problem. It’s device-agnostic — so if you want to sell an all-access, all-platform subscription, no problem there either. (It’s also a micropayment platform, for the few still living who believe in per-article micropayments as a viable model.)

Second, as Lee Shirani writes in the announcing blog post: “With Google One Pass, publishers can maintain direct relationships with their customers and give readers access to digital content across websites and mobile apps.” That sentence isn’t detailed any further in the initial announcement or docs online, but it sure sounds like a nice way of saying, “We’ll let you keep all the customer data Apple isn’t letting you have.”

And, most key of all, Google isn’t demanding the 30 percent cut Apple does. The announcement doesn’t share cost details, but the FT is reporting Google will take 10 percent of any subscription revenue. So selling a $15/month subscription via Apple would net $10.50 versus $13.50 via Google.

The announcement’s a lot to digest, but three quick thoughts:

— With the timing, it’s easy to see One Pass primarily as a competitor to Apple’s subscription plans. But note that the focus is primarily on web access, not app access. (Note that the word “Android” — Google’s mobile platform — is mentioned nowhere.) While mobile apps get a shoutout in the announcement, Google notes that it’ll work only “in instances where the mobile OS terms permit transactions to take place outside of the app market,” which likely means it’ll only work in Android apps, which are still a secondary priority for most news orgs, for better or worse, and where getting users to pay anything for apps has been a challenge. At least for the moment, One Pass is more of a direct competitor to Journalism Online’s Press+ than it is to Apple. It’s an infrastructure play.

— Frankly, I’m a little surprised Google’s even taking 10 percent. The transaction costs themselves shouldn’t be any higher than what Google Checkout regularly charges, which is 2.9 percent plus 30 cents a transaction (plus volume discounts). Sure, building and maintaining the record-keeping system for subscribers and the tools for distinguishing free/paid content will cost something. But Google’s consistent model has been to undercut paid competitors by making good free offerings, and I’d have thought just keeping the Checkout fees would have been the play, to soak up as much of the market as possible.

— What Apple is selling publishers is not just an easy payment system — they’re selling the 160 million user accounts with active credit cards attached. That’s about 70 million more than PayPal. How many of you have a credit card on file with Google Checkout, which has struggled to gain relevance and market share?

POSTED     Feb. 16, 2011, 11:15 a.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
What’s the right news experience on a phone? Stacy-Marie Ishmael and BuzzFeed are trying to figure it out
“Nobody has to read you. You have to earn that. You have to respect people’s attention.”
Come work for Nieman Lab
We have an opening for a staff writer in our Cambridge newsroom.
The newsonomics of telling your audience what they should do
At WNYC, a public radio station is getting more aggressive about telling people what to do: go vote, get more sleep, stay healthy. What happens when a news outlet starts talking about behavior change?
What to read next
718
tweets
Ken Doctor: The New York Times’ financials show the transition to digital accelerating
The numbers may look flat, but they contain a continuing set of ups and downs. Up next: executing on a year’s worth of launches.
540Here’s some remarkable new data on the power of chat apps like WhatsApp for sharing news stories
At least in certain contexts, WhatsApp is a truly major traffic driver — bigger even than Facebook. Should there be a WhatsApp button on your news site?
502Controlled chaos: As journalism and documentary film converge in digital, what lessons can they share?
Old and new media types from journalism, documentary, and technology backgrounds gathered at MIT to share practices and discuss mutual concerns.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Fuego is our heat-seeking Twitter bot, tracking the links the future-of-journalism crowd is talking about most on Twitter.
Here are a few of the top links Fuego’s currently watching.   Get the full Fuego ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
The Daily Show
Wisconsin Center for Investigative Journalism
ReadWrite
Knight Foundation
Foreign Policy
Texas Tribune
IRE/NICAR
Media Consortium
Gawker Media
Press+
Examiner.com
Minneapolis Star Tribune