{"id":255888,"date":"2019-06-10T15:52:49","date_gmt":"2019-06-10T15:52:49","guid":{"rendered":"http:\/\/mathewingram.blog\/?p=12"},"modified":"2019-06-10T15:52:49","modified_gmt":"2019-06-10T15:52:49","slug":"nyt-promotes-questionable-study-on-google-and-the-media","status":"publish","type":"post","link":"https:\/\/mathewingram.com\/work\/2019\/06\/10\/nyt-promotes-questionable-study-on-google-and-the-media\/","title":{"rendered":"NYT promotes questionable study on Google and the media"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em><strong>Note<\/strong>: This is something I\u00a0<a href=\"https:\/\/www.cjr.org\/the_new_gatekeepers\/nyt-google-media.php\">originally wrote<\/a>\u00a0for the New Gatekeepers blog at the Columbia Journalism Review, where I\u2019m the chief digital writer<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <em>New York Times<\/em> story <a href=\"https:\/\/www.nytimes.com\/2019\/06\/09\/business\/media\/google-news-industry-antitrust.html\">published on Sunday contains<\/a> an eye-opening allegation: it says that Google &#8220;made $4.7 billion from the news industry in 2018,&#8221; according to a new report. The lede of the story quotes the figure again, with all of the zeroes, and mentions that this number is &#8220;more than the combined ticket sales of the last two Avengers movies,&#8221; and is more than what most professional sports teams are worth (the writer of the story usually covers college sports, according to his <em>Times<\/em> bio). As it turns out, <a href=\"http:\/\/www.newsmediaalliance.org\/wp-content\/uploads\/2019\/06\/Google-Benefit-from-News-Content.pdf\">the report<\/a> was published by the News Media Alliance, a media-industry lobby group formerly known as the Newspaper Association of America, and the figure quoted by the <em>Times<\/em>\u2014without any critical assessment whatsoever\u2014appears to be based almost entirely on questionable mathematical extrapolation from a comment made by a former Google executive more than a decade ago.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After quoting the head of the News Media Alliance, David Chavern, as saying newspapers deserve a cut of that $4.7 billion, and that the NMA believes this estimate is actually &#8220;conservative,&#8221; the <em>Times<\/em> story notes the number is based in part on a study done by a consulting firm called Keystone Strategy. That study in turn relies on <a href=\"http:\/\/fortune.com\/2008\/07\/22\/whats-google-news-worth-100-million\/\">a public comment by<\/a> then-Google executive Marissa Mayer at a public event in 2008, when she estimated that Google News brought in $100 million in revenue. The News Media Alliance appears to have <a href=\"http:\/\/www.newsmediaalliance.org\/wp-content\/uploads\/2019\/06\/Google-Benefit-from-News-Content.pdf\">come up with the current figure<\/a> in part by extrapolating from this comment, assuming that Google News revenue would make up the same proportion of the company&#8217;s revenue as $100 million was in 2008, and also that news consumption via Google&#8217;s main search is 6 times larger than via Google News (the report says this is based on referral traffic to newspaper websites).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A number of prominent journalists and media-industry observers have publicly scoffed at both the number and the report itself, and also questioned the desire of the Times to publicize such a thinly-sourced study without more skepticism (the <em>Times<\/em> didn\u2019t respond to multiple requests for comment from CJR). Aron Pilhofer, former head of digital at <em>The Guardian<\/em> in the UK, and now the Chair of Journalism Innovation at Temple University, <a href=\"https:\/\/twitter.com\/pilhofer\/status\/1137934122188443648\">called the report&#8217;s conclusions<\/a> &#8220;nonsense,&#8221; while Dan Gillmor, who runs the News Co\/Lab at Arizona State University, <a href=\"https:\/\/twitter.com\/dangillmor\/status\/1137936193138483200\">said<\/a> the <em>Times<\/em> embarrassed itself by running the story. Damon Kiesow, a journalism professor at Missouri University, <a href=\"https:\/\/twitter.com\/dkiesow\/status\/1138064199555461120\">said the NMA report<\/a> was &#8220;a recap of all the complaints publishers have spouted at Google in the past decade,&#8221; and that it contained &#8220;no rational economic argument aside from the specious math the NYT reported.&#8221;<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter wp-block-embed is-type-rich\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"525\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">A group called the News Media Alliance got the NYT to run a piece last night saying that Google made &quot;$4.7 billion&quot; from the news industry. <br><br>And now that the study is out, the number appears to be just as shaky as it initially seemed to a few of us. 1\/5 <a href=\"https:\/\/t.co\/LKUkZqUGDw\">https:\/\/t.co\/LKUkZqUGDw<\/a><\/p>&mdash; Bill Grueskin (@BGrueskin) <a href=\"https:\/\/twitter.com\/BGrueskin\/status\/1138063602521448448?ref_src=twsrc%5Etfw\">June 10, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Several observers noted the story was timed in such a way as to provide maximum publicity for a bill that the New Media Alliance has been promoting to Congress, called the Journalism Competition and Preservation Act. The <a href=\"https:\/\/www.congress.gov\/bill\/116th-congress\/house-bill\/2054\/text?q=%7B%22search%22%3A%5B%22Hr+2054%22%5D%7D&amp;r=1%22%20target=%22_blank%22%20rel=%22noopener%20noreferrer\">proposed legislation<\/a> would exempt newspaper companies from competition laws, which prevent industry-leading entities from colluding to set prices. The NMA argues this would allow publishers to lobby Google and other platforms for better financial compensation together instead of individually. Congress <a href=\"https:\/\/www.cnn.com\/2019\/06\/09\/media\/house-of-representatives-big-tech-hearings\/\">is holding hearings<\/a> this week looking into whether Google and Facebook&#8217;s market dominance requires anti-trust action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The main reason the NMA study had to jump through the kind of hoops it did in order to come up with a number for its report is that Google News doesn&#8217;t carry any advertising, and doesn&#8217;t generate any direct revenue from the headlines and excerpts of news content it provides. One of the most glaring omissions from the report, mentioned by a number of media-industry observers is that the headline-grabbing number doesn&#8217;t take into account any of the ad revenue newspapers have generated from the page views they get via links on Google News and Google&#8217;s main search page. The search company says publishers get more than 10 billion clicks every month (the value of which differs depending on the publisher). The NMA told CJR the purpose of the report was to look at how much Google benefits from news, not the opposite.<\/p>\n\n\n\n<figure class=\"wp-block-embed-twitter wp-block-embed is-type-rich\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"525\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">My 2 cents on the Google and News \u201cstudy\u201d: There are plenty of legitimate reasons to criticize big platforms approach to news. But: Making up numbers randomly and calling it a study is NOT the way to go. \u201cCalculations\u201d like this show an embarrassing lack of business acumen. <a href=\"https:\/\/t.co\/VGHwNIkWG4\">pic.twitter.com\/VGHwNIkWG4<\/a><\/p>&mdash; Anita Zielina (@Zielina) <a href=\"https:\/\/twitter.com\/Zielina\/status\/1138075947792510977?ref_src=twsrc%5Etfw\">June 10, 2019<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Emily Bell, director of the Tow Center for Digital Journalism at Columbia, said the NMA report&#8217;s framing was not a helpful way of looking at the kind of digital disruption the news media has gone through since the arrival of the internet. &#8220;Framing Google\/FB and the effect on the \u2018news industry\u2019 in terms of $ amounts  is not very helpful,&#8221; Bell <a href=\"https:\/\/twitter.com\/emilybell\/status\/1138070632623673346\">said on Twitter<\/a>. &#8220;Framing it as the concentration of money and data in the advertising market is better.&#8221; Elizabeth Hansen, a researcher working on local news business models at Harvard&#8217;s Shorenstein Center, <a href=\"https:\/\/twitter.com\/ehansen02\/status\/1138077051934707714\">pointed out that<\/a> &#8220;Internet platform economics were going to swamp the majority of publishers no matter what\u2014there is (almost) no market for their products any more; not because they couldn\u2019t make one, but because that\u2019s not how internet economics work.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, the premise of the NMA&#8217;s report\u2014and the argument behind the legislation it is promoting\u2014is based on a misunderstanding of how the marketplace for information has evolved. While it&#8217;s true that revenue for newspapers <a href=\"https:\/\/gigaom.com\/2013\/04\/11\/two-charts-that-tell-you-everything-you-need-to-know-about-the-future-of-newspapers\/\">has declined sharply<\/a> over the past two decades, and revenue for Google and Facebook has increased just as dramatically, it&#8217;s not accurate to say that one caused the other. The ad market changed for a number of reasons\u2014many having to do with an expansion of choice\u2014and Google and Facebook took advantage of that. Newspaper publishers did not, again for a variety of reasons. So asking Google or Facebook to pay back something they theoretically took from the industry is mistaking cause for effect, and <a href=\"https:\/\/twitter.com\/jbenton\/status\/1138074615979241472\">so is thinking that<\/a> bargaining collectively with the platforms will somehow produce revenue that will save the media industry from the change occurring all around it.<\/p>\n<div class=\"syndication-links\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Note: This is something I\u00a0originally wrote\u00a0for the New Gatekeepers blog at the Columbia Journalism Review, where I\u2019m the chief digital writer A New York Times story published on Sunday contains an eye-opening allegation: it says that Google &#8220;made $4.7 billion from the news industry in 2018,&#8221; according to a new report. The lede of the &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/mathewingram.com\/work\/2019\/06\/10\/nyt-promotes-questionable-study-on-google-and-the-media\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;NYT promotes questionable study on Google and the media&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crsspst_to_mathewingramblogwordpresscom":false,"mf2_syndication":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-255888","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts\/255888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/comments?post=255888"}],"version-history":[{"count":0,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts\/255888\/revisions"}],"wp:attachment":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/media?parent=255888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/categories?post=255888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/tags?post=255888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}