News Licensing Outfit NewsRight Bags First Client Tech News and Analysis
News companies have notched a victory in their long running push to charge digital aggregators for curating their content. On Wednesday, licensing service NewsRight announced a deal that could be the first step in creating a major new revenue stream for companies like the New York Times (NYSE: NYT) and the Associated Press.
The deal in question involves a news monitoring service called Moreover which will pay NewsRight to license the content it now scrapes on behalf of its clients. NewsRight will in turn distribute the revenue to the 29 news firms that are its shareholders.
Financial terms were not made public but the parties say that Moreover will pay to receive a steady stream of licensed content along with customized analytics into how that content is used. It up to Moreover to decide how (or if) to pass the additional costs along to its clients.
The primary significance of the deal, however, is that it opens the door for NewsRight to approach other companies that use news as part of their operations. In a phone interview, CEO David Westin said there are a hundred or so other companies like Moreover that monitor and compile news clips for governments, corporations and other clients.
we are able to apply this throughout the subscription aggregation market, it will make a significant difference to the news industry, said Westin.
While these modern day clipping services may represent a multi million dollar market, the real white whale for NewsRight is likely to be large aggregation based news services like the Huffington Post or Business Insider. Westin said NewsRight expects to announce a deal in another sector in the next 60 days, but would not say if it is a Huff Po type business or another industry entirely.
While the Moreover deal is a definite win for old line news agencies, the way forward is far from smooth.
Likewise, there are legal uncertainties surrounding just when a curator must pay to license a news story. While news companies won a UK decision that forced a company called Meltwater to license headlines, such a broad ruling is unlikely in America where the law of fair use is much stronger.
NewsRight has said in the past that it is not a shop. The most tempting of these appears to be an analytics tool that will help aggregator clients not just track stories, but discover how ma Louboutin Outlet ny people are actually reading a story (such a tool could be valuable for companies trying to calibrate a PR response to a negative story).
Westin added that a NewsRight license also provides clients with a wire style news feed that makes it easy for them to ident Louboutin Outlet ify and share the original source of a story that goes viral.
News companies wil Louboutin Outlet l be watching closely to see if NewsRight represent a long awaited new revenue stream to fund journalism or if it will instead represent what crit Louboutin Outlet ics have said is an ill fated overreach. and The Washington Post (NYSE: WPO) Company.