Local news loses billions of dollars every year at the hands of digital media giants

Recent BIA Advisory Service Research Analysis Entrusted by the National Association of Broadcasters (NAB), The economic impact of the Big Tech platform on the viability of local newsReported that a local TV news program loses about $ 1,873 million from Google each year
Facebook search and news feed.

Local television news continues to be a trusted and primary source of information for millions of viewers. due to the economic downturn).

Local TV stations continue to invest heavily in news gathering, with some spending a third (or more) of their budgets on news, reports NAB. Most of these investments come from advertising revenue. The steady increase in the average number of hours of local television news at each station is also driving revenue. 6 hours during the week.

Like all content, consumers turn to digital platforms for the news. According to the Pew report, 86% of Americans receive news from digital media occasionally or frequently. As a result, TV channels are also investing heavily in news coverage on websites, social media, mobile apps, and video streaming to increase viewership. However, digital media advertising costs represent a small portion (around 10%) of total advertising costs.

Local TV ad spending is expected to stabilize over the next several years, while digital media ad spending is expected to grow double digits year on year. Today, digital media accounts for more than half of the growing ad spend allocated by marketers. The biggest beneficiaries remain Google and Facebook.

The two tech giants have an advantage over local broadcast news because of their substantial market power and economic influence. In its analysis, including in-depth interviews with broadcast executives, the BIA concluded that local TV stations (especially news) were not compensated fairly for content found on digital media.

The BIA reports that a large tech company was a gatekeeper in using algorithms for online search and content discovery. As a result, because of this unfair competitive advantage, they have too much control over how content is monetized and over revenue sharing. As a result, broadcasters are not compensated fairly because their content is a major source of revenue and potentially reduces the size of their newsrooms.

Additionally, because of its influence, tech companies have an unfair competitive advantage when content is found online, as local stations have little bargaining power in sharing advertising revenue. In addition, TV news programs are often not correctly identified when found online, and content can be bundled with “fake news” and other misinformation, which can damage credibility.

The study focused on Google and Facebook, but the BIA also highlighted Apple’s efficiency.
And Amazon
This is not of concern to local news, but it is possible. “The growth of these platforms shows the potential for substantial future harm to the industry, unless compelled by government action,” Rick Ducey, managing director of BIA Advisory Services, said in a statement. I am.

Australian law: Digital media is global and its power was curtailed in February of last year, as proposed by the Australian government. Mandatory trading code for news media and digital platforms This corrected an imbalance of power between digital media giants and news providers. The law will require Facebook and Google to pay for news content hosted on their website. As a result, Google negotiated with the news providers and Facebook took an approach to block all Australian news providers and avoid paying for the content.

Facebook claimed that “the bill fundamentally fails to understand the relationship between our platform and the publishers who use it to share news content.” After negotiating with the Australian government and receiving criticism from around the world, Facebook overturned its decision and passed a law. The European Union is considering a similar law, forcing major tech platforms to pay posting fees. new article.

U.S. bill: In the United States, legislation can be enacted to protect news from Google, Facebook and other big tech companies. In March 2021, US Senators Amy Klobuchar (D-MN) and John Kennedy (R-LA), as well as Representatives David Siciline (D-RI) and Kenbak (R-NY) Journalism and conservation competition.. The bipartisan bill will allow news publishers to collectively negotiate a fair and viable business model for Google and Facebook. “If we are to maintain a strong and independent press, we must allow the press to negotiate with big technology companies in a fair competition,” said Senator Klobuchar. Previously, Congress concluded that large digital media companies can hurt news providers.

It’s no secret that newspapers have been badly damaged financially by Google and Facebook. In May, the News Media Alliance hosted a virtual meeting with Alliance members, newspaper executives and members of Congress. Journalism and conservation competition (JCPA), also known as the “Safe Harbor Bill”. The law allows a limited temporary secure port for news publishers to collectively negotiate with Facebook, Google, and other leading technology platforms for fair compensation for the use of content. The Alliance is made up of 2,000 diverse media organizations.

Cindy Riccio, President and Founder Cindy Richo Communications “The newspaper’s safe harbor bill is way behind. When companies like Google and Facebook are taking hostages across the country, the Australian government is in search results, like the recent Google crisis in Australia. It’s just a monopoly that threatened to take the search service down in response to the Australian government’s demand to pay publishers for links and article snippets to be published. Our country was founded by the power of the media, and this loss of seeds is detrimental not only to the news industry, but also to democracy.

Cindy Riccio adds: Over the past year, people have turned to local news editors as the country has overcome a series of major challenges, from the COVID-19 pandemic to the reignited social justice movement to the explosive presidential election of the United States of 2020 and its aftermath. We consider the following. Find out how the changes taking place in the world are affecting their daily lives. “

Source Link Local News Loses Billions of Dollars Every Year to Digital Media Giants

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