What's happening here is that publishers and their owners somehow figured these pesky internet wiz kids owe them more money.
The imbalance is that as platforms, newspapers cross-subsidize content. Interesting headlines attract readers to the newspaper, but once in hand readers are likely to continue reading the other, less unique articles. (See also why newspapers carry sports scores and comics). An investigative report is by itself a money-loser, but the overall effect on net readership is a win.
Aggregators break newspapers as platforms. Google et al provide extra discoverability for a single article, certainly, but then there's no lock-in to keep readers on the (now) website, reading more and seeing other ads. Headline-and-summary view might even result in zero-click satisfaction, denying the outlet even that first impression.
This might just be a change that the industry must adapt to, in the same way that television and radio news took over the news-breaking role. However, it is more than a trivial threat to the fundamental business model of a news outlet; it's not (just) superficial greed.
I'm huge into supporting good journalism, and think we need some sort of intervention here. But I'm very very strongly opposed to this new law. If news sites want to charge for their content they should put it behind a pay gate.
I pay for news, but insultingly they STILL feed me ads. There is no tier that I can pay for that will eliminate the ads. I really don't have much sympathy for them given their refusal to somehow adapt to the times and offer service that users feel valuable enough to pay for.
Traditional paper-based newspaper is ad-supported too.
This is the 'trade journalism' model. Here, good journalism still exists, but the price is more than most people would afford. People buy trade journals when the news is important, with direct financial implications that justify the cost of admission.
General journalism, however, is something close to a public service. It's better in a vague, hand-wavy way to have an educated citizen body that's informed about current affairs, but few individual citizens derive much value from their own knowledge. (This is also why people tend to gravitate towards 'entertaining' news, by some definition. Come for the sports scores, stay for current events.)
In this model, the benefit of news is externalized. I benefit when other people are educated. This is a classic market failure, and it suggests that a reader-pays framework will underprovide news.
As evidenced by the average RoI at Google compared to news organisations.
Not a good metric.
The ROI difference is because of both entities being in different industries, and other things unrelated to the power balance. We can similarly compare the ROI of a news organization and say a restaurant and lament that there is an imbalance of power.
