Sunday, February 27, 2011

Google’s 1-Stop Online Access

Google One Pass has the potential to revolutionize the way publishers keep direct relationships with customers and readers access digital content across websites and mobile apps.

Google CEO Eric Schmidt notes the new service lets publishers set their own prices and terms for their digital content.

“Readers who purchase from a One Pass publisher can access their content on tablets, smartphones and websites using a single sign-on with an e-mail and password,’’ Google says.

“The service helps publishers authenticate existing subscribers so that readers don't have to re-subscribe in order to access their content on new devices.”

Google One Pass is available for publishers in the United States, the United Kingdom, Canada, France, Germany, Italy, and Spain.

Google Vs. Apple

Speculation already has begun about how the Google service will compete with Apple's new subscription service, which it has just made available to all publishers of content-based apps on the App Store.

Apple will keep 30% of the revenue from any new subscribers it brings to the publisher via the App Store. Critics in the media industry say the Apple cut is excessive.

Google says it will keep just 10 percent.

“Our intention is to make no money on it,” Schmidt says. “We want the publishers to make all the money.”

The race to claim attract digital newspaper subscribers comes as struggling publishers seek to boost the money they make from readers who use computers, tablets and smartphones. Some newspaper publishers have stepped up paywall efforts.

As Daily Finance notes, Apple has a major critical advantage over Google.

The App Store has tremendous traffic from owners of iPhones and iPads. There are over 160 million devices that run on the Apple iOS system.

Google does not have a comparable and ready customer base because its Android mobile OS is used by hardware companies over which Google has little control. Google's Apps MarketPlace is smaller in both the number of offerings and downloads than the Apple store.

Google's new project may be more favorable financially to publishers, and may have other benefits for consumers, but the search giant's application “ecosystem” may not be powerful enough to support a robust online subscription service. Apple does not have such a problem.

Dead Tree News

The newspaper industry – still reeling from the one-two punch of exploding Internet growth and advertising drops from the Great Recession – may view Google One Pass as a half-hearted attempt to deflect criticism about Google searches linking to “free” online print content without compensating the original source.

“With Google One Pass, publishers can customize how and when they charge for content while experimenting with different models to see what works best for them—offering subscriptions, metered access, ‘freemium’ content or even single articles for sale from their websites or mobile apps,’’ according to the Official Google Blog.

“The service also lets publishers give existing print subscribers free (or discounted) access to digital content. We take care of the rest, including payments technology handled via Google Checkout.’’

The OGB concludes: “Our goal is to provide an open and flexible platform that furthers our commitment to support publishers, journalism and access to quality content.”

In Our View

WMB
applauds the one-stop concept behind Google One Pass and sees the service as a viable alternative to Apple – arguably the runaway leader in developing new tech gadgets that capture the public’s imagination and dollars.

Some have even described Apple CEO Steve Jobs as the Thomas Edison of our time because of product innovations including iPod, iTunes, iPhone, and iPad.

Still, we have a nagging concern, as always, with anything that “controls or regulates” the Internet or the way in which consumers interact with it. Perhaps the best measurement of the new service will be whether the public embraces or rejects it.

WMB will be watching as the rivalry between Google One Pass and the App Store unfolds.

Consumers generally benefit from competition because it prompts innovation and pricing strategies out of sheer necessity.

Ken Cocuzzo

No comments:

Post a Comment