Google Inc. CEO Eric Schmidt delivered the closing address on Tuesday (April 7) to the Newspaper Association of America convention in San Diego. The talk was sponsored by the Donald W. Reynolds Journalism Institute at the Missouri School of Journalism. Click on the link below to go to and launch the audio, or download an MP3 podcast for offline listening. (54 minutes, 13MB) (The sound of keyboard clicking stops after the first few minutes)
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The Poynter Institute website published a transcript of the Q&A portion of his appearance:
And here’s the script of the Cover-It-Live real-time blogging of his talk:
The first question in San Diego at the NAA closing to Google CEO Eric Schmidt was asked by RJI’s Roger Gafke. Here is the exchange:
ROGER GAFKE: You have mentioned the importance of advertising as the future but in your opening remarks you mentioned a bit about micropayments and subscriptions. Would you elaborate a bit on each of those other potentials?
ERIC SCHMIDT: I think you are going to end up with all three. An analogy I would offer is television — there is free over-the-air-television, there’s cable television and then there’s pay television. And they have smaller markets as you go from free to more highly paid. And that structure looks to use like roughly the structure of all of these businesses. Today there are very effective subscription-based models, but there are not very good micropayment systems, micropayments meaning 1-cent, 3-cent kinds of systems. They clearly need to be developed by the industry. So I think from your perspective you should assume that your information, if there is a category of information that you all produce that you’ll want to distribute free — freely — there’s a category of information that you’ll want to distribute on a per-click basis and then there’s some of it you’ll want subscription for. The reality [is] that in this new model, the vast majority of people will only deal with the free model and so you.ll be forced whether we like it or not, to have a significant advertising component as well as a micropayment and a traditional payment system. The technology around micropayments is getting to be possible now. The transaction costs were so high before that you couldn’t do the one-cent, three-cent kind of a model. It looks like the new technologies around aggregation will allow that at the payment level.