Why Google decides to pay publishers $1 billion over sharing their content

This product, will allow publishers to pick and present their stories, will launch on Google News on Android devices and eventually on Apple devices. Alphabet plans to pay $1 billion to publishers globally for their content over the next three years, Sundar Pichai, CEO said . It is a move that could help it win over a powerful group amid heightened regulatory scrutiny worldwide.

News publishers have long fought the world's most popular internet search engine for compensation for using their content, with European media groups leading the charge.

Sundar Pichai said the new product called Google News Showcase will launch first in Germany, where it has signed up German newspapers including Der Spiegel, Stern, Die Zeit, and in Brazil with Folha de S.Paulo, Band and Infobae.

"Our approach with Google News Showcase is a very different approach for Google from a product standpoint ... It's a new way for us to connect users to stories that matter. It's a new way for us to work with publishers, but to also make money from their content beyond beyond Search and News. And of course, it's a new way for Google to support the future of quality journalism."

- Brad Bender, Google's VP of product management for news

The effort is Google's biggest commitment to editorial curation to date. While the giant has made efforts recently to elevate quality reporting in its algorithms, most of those ranking decisions are made absent of human judgement.

The new Showcase product is different from Google Search or News because it relies more heavily on the editorial choices of individual publishers. Panels will still be surfaced by the same algorithms used to rank content in Google News or Search, but within them publishers will be curating what's featured.

Bender says it's selecting publishers on a country by county basis. "We need to have enough of a critical mass of publisher content to be able to launch in a country," he says. From there, it will prioritize publishers that have established audiences and serve a community, like local news publishers and print newspapers.

"This financial commitment - our biggest to date - will pay publishers to create and curate high-quality content for a different kind of online news experience," Pichai said in a blog post.

The product, which allows publishers to pick and present their stories, will launch on Google News on Android devices and eventually on Apple devices.

Google is negotiating with French publishers, among its most vocal critics, while Australia wants to force it and Facebook to share advertising revenue with local media groups.

Google's funding for news organisations has frustrated other internet publishers, such as weather websites and recipe tools, which say Google has hurt their revenue.

An expert says, there is a data and content war is going on, Idea is always an idea and AI defines on the top of its, hence a new idea is always on demand to reinvent. By just paying a small amount to the writer and publisher for their efforts and taken as proprietary, since they have paid for their idea and services.