Google news initiative innovation challenge in Latin America: business models between path dependence and power relations

Abstract

ABSTRACT In response to growing regulatory pressures, tech companies have partnered with media organizations to support news production through programs, grants, and financial aid for journalism. Notably, the Google News Initiative (GNI) Innovation Challenge has invested millions in Latin American news projects. This study explores the characteristics of these projects and their impact on the business models of Latin American media organizations. By examining project descriptions, a typology clarifies the connection between these initiatives and their effects on publishers’ business models. This analysis is complemented by 20 semi-structured interviews conducted from January 2020 to March 2023 with key regional informants. Results show three types of projects emerging through the GNI Innovation Challenge: audience-building, revenue generation, and technological innovation. It becomes evident that these media organizations are trapped in a dependent cycle, significantly contributing to their challenges in establishing sustainable business models. Furthermore, the study suggests that media organizations perceive these grants as a temporary financial resource, enabling them to hire additional staff and implement technological advancements within their newsrooms for a short time. Meanwhile, Google exerts its influence across the media industry by promoting cutting-edge technologies, which increases media dependence on its infrastructure. Ultimately, this research highlights the complex dynamics between big tech firms and the news industry, raising questions about the journalism sustainability and the potential consequences of its path dependence and capture by platforms.