Also see this Don Dodge post on the newspaper classified revenue drain
Notably, Google's own version of the news wire story will take precedence over those running in other news outlets. In other words, Google keeps the traffic. Google explains it as dealing with a duplication problem here, but, come on now...if I were running a newspaper, I'd be livid. I pay the wire services so that I can get the eyeballs. Now Google is paying them, presumably (no comment on this in the coverage), and the inevitable result is that the newspaper outlets will lose traffic to Google's direct relationship with the wire services.
John Battelle's Searchblog: Google Hosting News: This Is A Big Deal, Announced Quietly
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