Google says you can’t charge for news, silly goose.

Google CEO and internet tyrant Eric Schmidt was recently asked what he thinks about Rupert Murdoch’s plan to charge visitors for online news.

His response echoes the words of most cynical commentators in the online news debate: people may pay for niche media like the Wall Street Journal but fat chance getting anyone to pay for general news.

“In general these models have not worked for general public consumption because there are enough free sources that the marginal value of paying is not justified based on the incremental value of quantity.”

“So my guess is for niche and specialist markets … it will be possible to do it but I think it is unlikely that you will be able to do it for all news.”

While the perspective isn’t a new one, Schmidt’s comments are interesting for two reasons:

1) This is from Google, and if Google know anything its how people use the web.

2) As Editor’s Web Blog points out, his comments seem to contradict a proposal the company put forth this month to the Newspaper Association of America which laid out a micropayment system for online news. Here’s their summary of the proposal:

Google believes that an open web benefits all users and publishers.  However, “open” need not mean free.  We believe that content on the Internet can thrive supported by multiple business models — including content available only via subscription. While we believe that advertising will likely remain the main source of revenue for most news content, a paid model can serve as an important source of additional revenue.  In addition, a successful paid content model can enhance advertising opportunities, rather than replace them.

Do these words feel a tad hollow given Schmidt’s recent remarks?

Murdoch’s gambit, NewsWire’s gain

The big story this week was Rupert Murdoch’s declaration of war against free online news. His trumpet echoed around similar comments made by Fairfax chief executive Brian McCarthy who threatened the Australian citizenry with further cuts to newsrooms if we don’t start paying him somehow.

Once foes, now allies bound by a common threat. You, you greedy news-thieving sonofabitch.

And, a thought occurs, let us hope that they do form pay walls. There would be nothing sweeter for a public service website like NewsWire if barriers were put up around our regional rivals at the Dominion Post and their website Stuff.co.nz.

This is of course the great fear of Murdoch, McCarthy and their mogul cohorts, that the stingy and persistent internet user who meets an ‘insert credit card number here’ at the end of a google search will keep searching until they find something free.

And certainly, if internet porn has taught us anything, they will. But both Murdoch and McCarthy would be wise to remember that the internet did not kill off the porn industry in San Fernando valley, and chances are in this brave new world there will be room for both pay and free internet news.

It may just mean that pay sites will have to be more inventive to compete with the amateur with a webcam.