Several news publishers are going to lose millions of dollars, as Meta says now, in a very moderate way, there is no room for dedicated news systems on its growing network based on algorithms social platforms.
Axios reported based on unnamed Facebook internal sources that the company is officially relinquishing its contracts with major news publishers. The news was later explicitly confirmed by a spokesperson for Meta, Facebook’s parent company.
“A lot has changed since we signed agreements three years ago to test bringing additional news links to Facebook News in the US,” the spokesperson said in an email to Gizmodo. . “Most people don’t come to Facebook for information, and as a business it doesn’t make sense to invest too much in areas that don’t align with user preferences.”
Facebook had paid news agencies As The New York Times, The Washington Post and The Wall Street Journal for their content included in the News tab of Facebook. According previous reports. Axios also mentioned, based on unnamed inside sources, that Facebook pays media $90 million for news videos.
Three-year agreements with news publishers have been first inked in 2019and now all that money will go “poof” because these contracts go in the direction of the dodo. The contracts were first entered into to avoid rumblings from some advocates and lawmakers that Facebook—among other technology companies— should pay for news content hosted on their sites.
Those following along did see this move coming, though. Meta’s execs absolutely loathe the idea that they should have to pay for posts linking between sites. Unnamed sources from Facebook previously told Journal reporters they would be letting those contracts dissolve as it refocused its business model toward the vague idea of the “metaverse.” And, not to mention—making changes that make both Facebook and instagram seem very TikTok-ish. This means that CEO Mark Zuckerberg and co don’t really need the main content from news publishers, as the new model emphasizes algorithm-based feeds rather than posts from those users.
Facebook had already been slapped by laws instituted in 2021 by Australia force the company to pay for news content. At the time the company was fighting this law, Nick Clegg, president of global affairs for the company, said “Less than 1 in 25 articles in your News Feed will link to a news item, and many users say they would like to see even less news and political content.” Facebook would eventually launch a $15 million news fund.
Meta might have to save some money anyway. His last quarterly report showed that he had suffered his first drop in turnover ever in the company’s history.