Why Google owes publishers £2bn+ (per year) | Future's former CTO becomes CEO
And Sky News managing director explains broadcaster's plan to become 'commercially and editorially fit for the future'
Good morning and welcome to your Press Gazette Future of Media newsletter on Thursday, 30 January.
Sky News has told staff to brace for a major shake-up as it looks to become commercially sustainable.
The channel doesn't publish financial figures but is believed to be a loss leader for owner Comcast.
After 2028 Comcast is no longer bound by a ten-year promise to maintain funding for Sky News at previous levels so the race could be on to create the UK’s first profitable broadcast news channel.
We spoke to managing director Jonathan Levy about how the channel plans to be more self-sufficient by 2030. He said there will be less focus on the core TV breaking news service and more on premium video served via the Sky News website and app.
Alphabet’s spokesperson tells me the company makes no money from news on search. The truth is probably somewhere in between.
It's worth noting that the study from the Public Interest News Foundation makes no mention of Google Discover, the near-ubiquitous smartphone news feed which is packed with advertising, utterly dependent on news publishers and which pays us zero money in return.
Google is a public utility nearly as important as the phone wires which underpin the internet itself. It is going to have to accept far greater regulation and start making a bigger contribution to society if it wants to keep its lucrative stranglehold on the UK's £40bn a year advertising market.
The question is how much money do news publishers deserve and how can regulators come up with a way of distributing cash that supports good news (eg. council reporting) and does not encourage the bad (thinly-sourced articles produced purely to farm driveby clicks)?
Twenty years ago it seemed that news businesses were mainly run by accountants (reflecting the fact that cost control from existing models was seen as key to the future).
Future plc today appointed former chief technology officer Kevin Li Ying as its CEO, reflecting the importance today of technological innovation for publishers.
20-year company veteran Li Ying is the architect of Future's homegrown content, advertising and e-commerce technology.
Future's current market cap of £1bn appears to be almost entirely derived from its Go Compare insurance comparison site, underlining the scale of the challenge ahead for the magazine and special interest publishing giant.
Promoted job: Headline Search, which finds “cracking comms jobs for journalists (and only journalists)” is looking for an experienced tech/business journalist for a fast-growing London-based PR company. Excellent package and great company culture promised. Email: Cathal@headlinesearch.co.uk (and please mention Press Gazette).
On Press Gazette
Google owes UK news industry £2.2bn from 2023 alone, claims new research
“News providers are responsible for creating and verifying news content, they employ the journalists, investigate the stories and carry the legal risks. Their work contributes to Google’s profits, but Google doesn’t share the profits equitably with them.”
Sky News plans for life after 2030 with ‘premium video’ focus and possible paid content
Sky News current funding guarantee from Comcast expires in 2028.
Future’s former chief technology officer Kevin Li Ying named CEO
Curent CEO Jon Steinberg will remain a senior advisor until June to help with the transition.
Could AI-powered personalisation boost reader engagement for publishers?
AI-human collaboration has led to a 50-80% increase in clickthrough rates when AI curates articles based on user interests at Germany-based EXPRESS.de.
Media events for 2025: Awards, conferences and networking
Press Gazette’s complete roster of media events for 2025 includes two conferences in New York.
This week on Press Gazette
Lords amendments offer AI copyright protection for publishers
BBC World Service to cut 130 roles to save £6m in the next year
Police force slammed over ‘risible’ decision to bar former journalist from job
Jewish Chronicle announces new editor, new look and revamped membership
Reddit tips from Metro: ‘It’s trial and error… You’re probably going to get banned’
50 biggest UK news websites: Mail Online top commercial publisher for reach and engagement
Latest Press Gazette podcast
Podcast 81: Super soaraway Substack, how Youtube became newstube and why Prince Harry took the cash
Bron Maher discusses Press Gazette's new ranking of the most lucrative titles on Substack, Charlotte Tobitt explains how and why publishers are currently so fixated on building their followings on Youtube and Dominic Ponsford shares his view on why Prince Harry decided to take News UK's cash rather than have his day in court with The Sun.