Tech giants to help newspapers charge readers for online news

By ANDREW VANACORE
September 12, 2009, 3:52pm

NEW YORK (AP) – Some of the world's biggest technology companies say they can help publishers successfully charge readers for news online.

If only that were the hard part.

IBM Corp., Microsoft Corp., Oracle Corp. and even Google Inc. – a company some newspapers blame for helping to dig their financial – responded to a request by the Newspaper Association of America for proposals on ways to easily, unobtrusively charge for news on the Web.

But while building the infrastructure for charging readers is one part of the equation, the new proposals underscore what may be the more intractable issue: Getting publishers to make the leap and stop giving news out for free on the Web.

Randy Bennett, the senior vice president of business development at the newspaper association, said his group initiated the process after a meeting of publishers in May near Chicago.

A report that was posted online Wednesday by the Nieman Journalism Lab at Harvard University includes 11 different responses from technology companies.

Bennett said the trade group wanted to give newspapers options, and will not recommend one proposal over the others.

Google's proposal may be the most eyebrow raising, if only because the company – which aggregates thousands of articles from media outlets on its news pages – is so closely associated with the freewheeling ethos of an open Internet.

"Google believes that an open Web benefits all users and publishers,'' the company writes in its proposal. "However, 'open' need not mean free.''

Google proposed offering news organizations a version of its Google Checkout system, which is used for processing online payments. It would give readers a place to sign in to an account and then pay for media from a variety of sources without having to punch in their information over and over. And the company says it could offer publishers a variety of pay methods, from basic subscriptions to so-called "micropayments'' on a per-article basis.

Along with the technology heavyweights offering ideas are tiny startups.

CircLabs, run by just four people and incubated at the Missouri School of Journalism, is developing an application that would feed news from different sources into a bar across the top of Web browsers.

Martin Langeveld, the company's executive vice president, said the application will offer both targeted advertising and the option of charging. (Langeveld said the company has seed money from The Associated Press. AP spokesman Paul Colford said the news cooperative does not disclose which ventures it invests in.)