Thursday, February 17, 2011

Google Squeezes Apple With Paywall Service

10:22am UK, Thursday February 17, 2011
Hazel Baker, Sky News Online 

Google has again faced up to technology giant Apple - this time by launching a digital subscription service just a day after its rival.

Google's One Pass is targeted at publishers looking to boost their online revenue

Called One Pass, the new system allows publishers of online newspapers and magazines to charge readers to access their articles and videos.
Media companies who use it can charge for full access or just single articles, and can also use it to deliver their publications through smartphone and tablet computer applications.
The plan comes just a day after Apple announced it was offering publishers the chance to sell content through its App Store.


But while Apple said it would be taking a 30% share of customer payments, Google said it would keep just 10%.
"Our intention is to make no money on it," said Google chief executive Eric Schmidt at a One Pass launch event in Berlin.
"We want the publishers to make all the money."
Forrester analyst James McQuivey warned that Apple's move was "short-sighted" as by taking such a large cut of revenue, it was encouraging publishers to seek an alternative to the "elegant apps that Apple had hitherto taught us to depend on".
The race to claim attract digital newspapers subscribers comes as struggling publishers seek to boost the money they make from readers who use computers, tablets and smartphones.

Google said its partners already include four big European media groups, including the publishers of Spain's El Pais and Germany's Stern.de.
Apple's iPad currently dominates the tablet computer market but a number of companies are developing tablets running Google's Android software.
Meanwhile the technology giants are fierce rivals on the smartphone platform front.