Carlo de Benedetti, president of
Gruppo Editoriale L'Espresso, whose publications include the daily newspaper
La Repubblica and weekly magazine
L'espresso, spoke in Paris about his support for paid content online and his belief that both
Google and Internet providers should be pushed to share income with content producers.
De Benedetti gave a speech at
SciencesPo university entitled "Internet and newspapers: the voice of democracy against populism," in which he outlined his belief that the Internet is crucial for spreading information more widely and is a force to be reckoned with, but that this does come with definite risks to democracy.
In terms of democracy, the fact that the Internet gives a clear platform to public opinion and allows any citizen to contribute to this, constitutes "extraordinary progress," De Benedetti said. However, there are serious dangers that accompany such a transformation, said De Benedetti, as such a system also gives a voice to the uninformed and the demagogues.
The importance of newspapers over other mediaThe vast abundance of information available online (although in many ways welcome) also leads to a complete lack of hierarchy of information. The fundamental role of newspapers, to organize and analyse the public debate, is threatened by this 'open-source' landscape.
Expanding on the importance of newspapers to a democracy, De Benedetti explained how unlike Internet or television, newspapers are capable of offering their readers not only information but the structure and context to allow them to come to their own conclusions on issues and events.
De Benedetti expressed concern and criticism about the state of television in Italy: as prime minister
Silvio Berlusconi owns or controls a significant number of channels, and "commercial television imposes a kind of cultural hegemony." A citizen who stays informed only via television is weaker, he maintained, However, as De Benedetti noted, "television is already last century. It will continue to exist, but as a part of the Internet."
He does not believe that the Internet will soon replace newspapers, but suggests that newspapers can retain their traditional role as the "sherpas of information" on the Internet. "The presence of islands of quality news in the ocean of fragments of information... is absolutely necessary," he said.
Paid online content De Benedetti is a strong supporter of paid online content. Consumers need to pay for news, he argued. Without the readers who were paying €1 each day for the print copy of La Repubblica, the paper would not have been able to carry out
its ten questions to Berlusconi campaign, to which the prime minister eventually responded in November, hence proving its validity, De Benedetti said. "News that is free is worth nothing," he said: if you want your content to be valued you have to charge for it.
He admitted that what people require from a newspaper is changing, and that newspapers must embrace these changes and adapt their offering. "Now news is a commodity. You don't buy a paper to learnt what has happened: rather to understand why it has happened."
"The news that goes deeper, that explains clearly, that verifies sources and adds context, is news that costs and as such, must be protected... whether on paper or on the web, on television or on the radio," De Benedetti said. Although the web has allowed newspapers to reach a large number of readers, continuing to offer news free of charge will soon "annihilate" daily newspapers and all quality news, he maintains. "Anybody can understand that paying for a good product is reasonable, even if it is online."
However, to make online content work, payment must be simple, De Benedetti stressed, something like
Apple's iTunes. "Simplicity and 'automisation' of payment is absolutely key," he said.
Journalism Online's Press+ has potential, he believes, as "it is difficult to imagine that consumers will willingly purchase content from multiple publishers who all use different platforms," and
Journalism Online is offering a single payment system.
Charging online might have to be a gradual process, he explained, first involving making users pay for content that is not currently available online, and for content that is specially created for this aim, "if possible exclusive and elite."
Contributions from search engines...Publishers should take a strong stance against search engines, De Benedetti suggested. "Google cannot exploit the content created by others without giving anything in return," he argued. "Aggregators do not respect the rules which protect intellectual property rights."
He pointed to the UK's
Newspaper Licensing Agency's scheme as something which could serve as a model for the industry regarding obtaining proper compensation for copyrighted content. The NLA works on behalf of the UK's newspapers and licenses businesses organisations to make paper and digital copies of newspaper content, its website explains. The collected fees are distributed to the publishers.
... and internet service providersIt's not just Google who should have to share revenue with publishers, believes De Benedetti, but also internet service providers, who he said "continue to exploit - just like the search engines - the traffic generated by quality news content." Paradoxically, he added, "the more content that is free, the more the revenue of internet operators increases, and the more that of the publishers who created this content decreases." Publishers must seek to persuade telecom companies to share some of their revenue linked to Internet access.

De Benedetti's views on the necessity for paid online content seem clearly in line with those of several other publishers as charging consumers online seems to be becoming an increasingly more attractive and feasible option, as the New York Times and other smaller newspapers jump on board.. L'Espresso group's star newspaper, La Repubblica, currently offers free online access, however, charging only for e-editions and archives. The paper
just started to charge for its iPhone application, offering subscriptions for €4.99 per month or €44.99 per year.
His interest in coming to some kind of revenue sharing agreement with search engines and aggregators is also something which is shared by other publishers, some of whom are demanding more control over their content. As De Benedetti noted, Google has recently been presenting a more conciliatory face to publishers, by making its 'First Click Free' scheme more flexible, for example. The Internet giant also offers newspapers a revenue-sharing opportunity on
Google News in the form of Fast Flip, and more user-friendly ways to display news, such as Living Stories or Timeline. But it seems unlikely that the company is planning to offer any direct cut of its main ad revenue to publishers in the near future.
Suggesting that ISPs also have an obligation to pay content providers appears more controversial, but it is an idea that has arisen before. Last year in France
Laurent Joffrin, editor of
Libération,
suggested a kind of tax on ISPs which would then be distributed to content producers. The UK
National Union of Journalists proposed a similar measure to support public service broadcasting in April 2009. Such legislation would be likely to face significant opposition, however.