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MEDIA

Dagens Nyheter applies for press subsidies

Sweden’s largest morning paper, Dagens Nyheter (DN), formally applied for state-sponsored press subsidies on Friday.

Because the paper now reaches a lower number of households than previously, DN can seek public support for 2009.

“It would be financially irresponsible not to seek [press subsidies],” said CEO Lena Herrmann to DN.

According to the newspaper’s management, DN meets the requirements for operational press support. The press support bylaws state that support can be offered if a newspaper’s household penetration drops below 30 percent.

DN’s editor-in-chief Thorbjörn Larsson attributed the drop in the number of homes reached by the paper to Stockholm being one of Europe’s most competitive media markets and because the number of households had increased.

The application was delivered to the Press Subsidies Council (Presstödsnämnden) on Friday afternoon.

DN couldn’t say how much money it may receive, but pointed out that its primary competitor, Svenska Dagbladet (SvD) received the maximum allowable amount of operational support, 65.4 million kronor ($8.3 million), in 2008.

Ironically, DN is actually against the current system of press subsidies which, according to Larsson, is an outdated system that distorts competition.

“We believe that the supports should be fundamentally reformed, but as long as they exist, we’ll follow the prevailing rules,” he said.

The system of press support was initiated in the early 1970s.

The other major daily newspaper to receive support is the Malmö-based Skånska Dagbladet.

BUSINESS

Google News to return to Spain after seven-year spat

Google announced Wednesday the reopening of its news service in Spain next year after the country amended a law that imposed fees on aggregators such as the US tech giant for using publishers’ content.

Google News to return to Spain after seven-year spat
Google argues its news site drives readers to Spanish newspaper and magazine websites and thus helps them generate advertising revenue.Photo: Kenzo TRIBOUILLARD / AFP

The service closed in Spain in December 2014 after legislation passed requiring web platforms such as Google and Facebook to pay publishers to reproduce content from other websites, including links to their articles that describe a story’s content.

But on Tuesday the Spanish government approved a European Union copyright law that allows third-party online news platforms to negotiate directly with content providers regarding fees.

This means Google no longer has to pay a fee to Spain’s entire media industry and can instead negotiate fees with individual publishers.

Writing in a company blog post on Wednesday, Google Spain country manager Fuencisla Clemares welcomed the government move and announced that as a result “Google News will soon be available once again in Spain”.

“The new copyright law allows Spanish media outlets — big and small — to make their own decisions about how their content can be discovered and how they want to make money with that content,” she added.

“Over the coming months, we will be working with publishers to reach agreements which cover their rights under the new law.”

News outlets struggling with dwindling print subscriptions have long seethed at the failure of Google particularly to pay them a cut of the millions it makes from ads displayed alongside news stories.

Google argues its news site drives readers to newspaper and magazine websites and thus helps them generate advertising revenue and find new subscribers.

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