Google said Thursday it will pay publishers more than $1 billion over the next three years to license news content for a new product called Google News Showcase.
The product will display story panels — teasers for articles in Google’s news section — complete with images and summaries selected by publishers. Users who click on the story panels will be taken directly to news organizations’ websites, where a story can be read in full.
The program is launching in Germany and Brazil. Alphabet Inc.’s GOOGL, +1.52% GOOG, +1.39% Google is in talks with publishers in other countries, including the U.S., according to people familiar with the matter. Google has already signed deals with nearly 200 publications, including Der Spiegel, Stern, Handelsblatt and Folha de S. Paulo.
Google News Showcase will be integrated into the Google News app and eventually will be available on Google Search. The company plans to include audio briefings and video clips later.
Some news publishers have complained about Google’s dominance of the online advertising marketplace, including its various tools that help place ads on websites. Google has also been criticized by executives at major news organizations — including Wall Street Journal parent News Corp NWS, +1.21% — for using news content in its products without paying the publishers that provide it.
An expanded version of this report appears on WSJ.com.
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