Facebook To Abandon News Content Deals
Meta has confirmed it will walk away from funding Aussie journalism once current content deals expire in what is a significant blow to Australia’s larger publishers.
Facebook is done funding news. Parent company Meta said it will not enter negotiations to extend a deal to pay with Australian media companies for the news that appears on its platform.
The well-hidden Facebook News tab will be officially be axed in Australia and the US this April, continue Facebook’s global push away from news.
The content deals between Facebook and Google and dozens of Australia’s largest media companies – including Nine, News Corp and Seven West Media – are estimated to be worth north of $200m each year.
The federal government had been seeking assurances from Facebook, Google and – due its rising prominence – TikTok to enter fresh talks to fund public interest journalism as several current content deals will soon expire.
The News Media Bargaining Code came into law three years ago to compel Google and Facebook to negotiate with publishers to pay for their content.
Meta and Google dominate Australia’s circa $14bn online advertising market, with Google alone estimated to rake in north of $8bn each year.
In a blog post, Meta said the move is part of “an ongoing effort to better align our investments to our products and services people value the most” and follows the axing of the Facebook News tabs in the UK, France and Germany last year.
The blog posted added: “While we’ll be deprecating Facebook News in these countries, this announcement does not impact the terms under our existing Facebook News agreements with publishers in Australia, France and Germany. These deals have already expired in the US and the UK.
“Additionally, to ensure that we continue to invest in products and services that drive user engagement, we will not enter into new commercial deals for traditional news content in these countries and will not offer new Facebook products specifically for news publishers in the future.”
Recently, Google’s public policy chief Lucinda Longcroft reiterated its commitment to fund journalism and B&T understands Google has already begun talks to renegotiate deals that will soon expire.
“We’ve been partnering with Australian news companies to strengthen quality journalism for two decades through our products, programs and commercial partnerships,” she said.
“Over the past three years, we’ve furthered our significant contribution to the Australian news industry by signing commercial agreements with more than 70 Australian news businesses, representing more than 200 outlets across the country. The majority of these outlets are regional or local.”
Will Users Care?
Meta said that the number of people using Facebook News in Australia and the US has dropped by more than 80 per cent last year.
Last September, the AFR reported that web traffic from Facebook to publishers had dropped by 50 per cent in 2023.
AFR parent company Nine is one of the main beneficiaries of news content deals. Nine chief executive Mike Sneesby said Meta’s decision “does not recognise the significant and increasing value of Nine’s journalism, unique content and brands to its platforms”.
He added: “Regardless of the Meta announcement today, the value created on their platform from the use of Nine’s IP is both unquestionable and growing and we strongly believe Meta should negotiate in good faith around the fair compensation for that value exchange.
“We will continue to robustly advocate that these deals are in the national interest and the arguments that led to the code in the first place remain as strong as ever.”
Commenting on the news, Seven West media managing director and chief executive officer James Warburton said: “Meta needs to be designated. The case has not only been made but proven and we welcome ministers Jones and Rowland’s commitment to the News Media Bargaining Code. We will work constructively with the ACCC and Treasury to ensure their designation”.
The Bigger Picture
Meta’s flight away from news comes as potentially costly regulatory headwinds intensify across the world.
In recent years, Facebook has changed its algorithm to give less prominence to news and a greater focus on users’ individual posts and short video content. Meta said news only accounts for 3 per cent of the content people see in their Facebook feed.
This shift has come as regulators sharpen their knives to pressure Facebook and Google into paying for the news posts shared on their platforms.
Last August, Facebook blocked posts from Canadian news sites after its government asked the company to pay for journalism. At the time the move was contentious because Canadian users were unable to access vital information about extreme bushfires on the social media platform.
In the wake of Australia’s News Media Bargaining Code, the European Union launched a public consultation about whether Google and Facebook should pay for journalism, and there has also been a similar push in the UK.
Although Meta’s latest announcement to stop funding news will strike a short-term blow to the coffers of Australia’s largest publishers, Facebook’s value to them as a source of web traffic has been evaporating in recent years.
Read next: Here’s what media companies think about the decision, Free TV boss Bridget Fair and also Albo.
Latest News
Marketing From The Cockpit: How Creativity Transformed AB InBev From A Brand Buyer Into A Brand-Building Powerhouse
Anheuser-Busch InBev (AB InBev) VP of global brands, Richard Oppy, explains how in just five years the marketing function turned the world’s largest beer buyer into the upper echelon of brand building. Ab InBev has cleaned up at Cannes and the Effies, while driving record levels of organic growth. And, all this in spite of […]
Cebu Pacific Launches Campaign To Showcase The Philippines As Major Destination For Aussies
In case you needed another reason to visit the Philippines.
Elon Musk’s X Corp Defeats eSafety In Federal Court
Is it just B&T or is Elon Musk slowly morphing into Darth Vader minus the chokehold?
TV Ratings (12/05/2024): Framer Brings Home The Bacon
Lovelorn famers continuing to do good TV numbers. As desperate roof tilers & abattoir employees say "what about us?"
Starcom Pips PHD & Kaimera To Win Gold At Nine’s Agency Games – Check Out All Of The Photos And Coverage Of The Event
Starcom proves the top agency at Nine's Agency Games. Thankfully, no one has asked for urine testing either.
Zitcha Solves In-store Retail Media Measurement With Game Changing Venvee Partnership
Does your in-store retail media measurement resemble a kitchen draw with the screwdrivers & plastic bags? Help is here.
Menulog Delivers More Beef Than Drake and Kendrick Combined, Via Thinkerbell
This "more beef" ad could have also used William & Harry, Oasis, and Bruce Lehrmann & just about everybody.
Komo Tech Announces Landmark Partnership With Fanatics Events To Revolutionise Live Event Experiences
This partnership promises to "revolutionise live event experiences". Hopefully it doesn't alert any sniffer dogs too.
SCA “Disappointed” After ARN and Anchorage Capital Withdraw Takeover Bid
ARN's bid for SCA trips up at the final hurdle. It's also unclear if other states will have to suffer Kyle Sandilands.
About Bloody Time – News.com.au Campaign Secures Win For Endometriosis Sufferers
News.com.au puts aside its passion for 'China set to invade' & overcharging Sydney cafe articles to do some real good.
Fast 10: B&T Talks Brand Rituals, Keeping It Fresh And DE&I With Affinity Media’s Angela Smith
B&T's probing Fast 10 is so quick it's liable for double demerit points on public holidays.
FriendlyJordies Journalist Calls The Police After Allegedly Being Informed Of Gangland Threats By ABC Reporter
What's better than a Walkley Award for journalism? Getting a hit put out on you by a Sydney underworld drug gang.
Two Iconic Brands Seal The Deal With Exclusive Strategic Partnership
Wonderfully, a horse turned up for this press photo. Better again, everyone went home with some manure for their roses.
JCDecaux Wins Tender To Retain Sydney Airport
Shopping at airports has always been a paradox. On one hand there's the duty-free, on the other there's $24 schooners.
QMS Adds Hills Shire To Sydney Network
Forget the hills being alive with the sound of music, as Sydney's Hills district comes alive with new outdoor.
Taboola Targets Large Advertisers With Taboola Select
Taboola unveils its new Taboola Select offering. It's a lot like diet vanilla Coke without any aspartame risks.
Enigma Appoints Ren Frise As Director
Ren Frise sounds like one of the cooler characters in the new Star Wars films. Alas, he's all the more earthbound.
Imran Masood Named As VP AUNZ at DoubleVerify
DoubleVerify continues with the insidious scourge of American job titles, as Imran Masood named VP of APAC.
OMD Brisbane Announced New Leadership Team After Rob Swinton Departs After 20 Years
A good time to go for the best desk in the office as OMD Brisbane announces reshuffle.
“Get Sh*t Done”: QMS’s Tennille Burt On The Importance Of A Consistent & Impactful Leadership Style
We can all buy into Tennille Burt's "get shit done" mantra. Yet, it never seems to work when trying to put laundry away.
Cairns Crocodiles The Work: Healthcare Sponsored By Alternaleaf
Every so often the mighty advertising industry uses its powers for good. This is one of those times.
ThinkNewsBrands To Play A Major Role At CMO ANZ Summit
I think we can all agree that being front and centre is a better place to be than back and off centre.
TV Ratings (09/05/2024): Carlton Beats Melbourne In Nail-biting Win
We venture a bet that viewers had no nails left by the end of this game!
Woolies And Suncorp Marketers On Why Brands Are Investing BIG In Netball
Brands finally understanding the potential of netball in Australia. And that's despite the Matildas' ongoing efforts.
Apple Apologises For ‘Tone Deaf’ Culture Crushing iPad Ad
AI may be the route to a smarter & efficient humankind, but for most of us it means "Shit, I'm going to lose my job!"
TEG Group Nabs Belinda Shaw From Boral
Belinda Shaw certainly not shy of challenge as she shifts from a cement firm over to a ticketing one.
NBL Slam Dunks New Network Ten Broadcast Deal
Do you think shooting hoops would be a better use of your spare time than drinking heavily? Discover the truth here.
Qatar Airways Becomes Partner and Official Cargo Airline Partner of MotoGP
B&T can't recommend Qatar Airlines enough. Qatar itself would give Hell's fires a run for their money such is the heat.
Rebel Bondi Junction Pulls Kangaroos Jerseys From The Shelf
Despite some adverse press, this is probably the correct thing to do by the sports retailer.
Dineamic Rebrands To serve Up Honest Food, Via Bullfrog.
Are ready-meals the new status symbol of the super busy? Much like hands-free phones & wanky personalised number plates?
TikTok Joins Adobe-founded Content Authenticity Initiative (CAI) To Help Combat Misinformation
With all this talk of the Chinese government spying on us, B&T embarrassed we haven't got that much to be spied about.
Cannes In Cairns Delegates Called Upon For AI Reef Challenge
Just by attending Cannes In Cairns you can help save the Reef! Which may offset the damage you do not saving your liver.
Man Of Many Launches Sydney Whisky Month – A Luxe Whisky Fair
Sydney's getting its own whisky month. Topics of conversation to avoid include the Middle East & Peter Dutton's head.
Challenger Signs Three Year Partnership With Sydney Film Festival
B&T loves the Sydney Film Festival & not just because it enables us to wear black turtlenecks & say noir over & over.
Truths & Tensions Of The Modern World: Nature Study Reveals Only 50% Of Aussies Feel Optimistic About The Future
Worrying study finds half of Aussies pessimistic about the future. An overwhelming majority detest the McPlant burger.
Bernard Salt AM On Why The Best Is Yet To Come For The Aussie Ad Industry
The demographer & futurist predicts a rosy future for Australia's ad industry. Alas, no tips for Randwick this Saturday.