The Australian media industry has responded to Meta’s decision to walk away from funding Aussie journalism once the current content deals expire.
In a blow to local media outlets, Meta said it will not enter negotiations to extend deals to pay Australian media companies for the news that appears on its platforms.
Michael Miller, News Corp Australasia executive Chairman
“I welcome the government’s support for the Australian media industry and its wholehearted commitment to upholding our laws and the News Media Bargaining Code.
Meta is using its immense market power to refuse to negotiate, and the government is right to explore every option for how the Media Bargaining Code’s powers can be used.
Meta is attempting to mislead Australians by saying its decision is about the closure of its news tab product, however the vast majority of news on facebook and Meta is and will continue to be consumed outside this product.
Meta’s decision will directly impact the viability of Australia’s many small and regional publishers and this is a pressing issue for the government to confront.
We will work in any way we can to assist the processes the government is putting in place”.
James Warburton, Seven West Media managing director and CEO
“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.”
Mike Sneesby, Nine Chief Executive
“Meta’s decision does not recognise the significant and increasing value of Nine’s journalism, unique content and brands to its platforms.
We believe the News Media Bargaining Code provides an appropriate framework for a fair value exchange between companies.
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 welcome the government’s comments that recognise Meta has acted unreasonably and support its commitment to seek a fair outcome for Australian news media. We will work closely and constructively with the government and the relevant regulators to achieve this.
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.”
Man of Many
“Meta’s choice to distance itself from news distribution in Australia marks a significant shift in the digital media ecosystem. While Man of Many wasn’t a direct beneficiary of the funding arrangements (despite being a Registered News Business as recognised by ACMA and despite many attempts at negotiation or engagement) under the News Media Bargaining Code, our platform has closely observed the unfolding dynamics and their implications for independent digital publishers.
Further, I didn’t agree with the premise of the News Media Bargaining Code in the first place as it does not recognise the true nature of the value exchange between publishers and platforms. Publishers volunteer all of their content on such platforms, through sharing and indexing their content (both of which are within their control) due to the large benefits they receive in the form of traffic and clicks. It beggars belief that the large established media players should be given an unfair advantage over small publishers through significant amounts of funding when such businesses were already profitable listed entities.It will be a spectacular own goal by Newscorp if the Government subsequently decides to designate the platforms like Meta and they decide to leave the Australian market all together, taking signfiicant referral traffic and resulting revenue with them”.
Free TV, the industry body for commercial TV networks, has also released a statement.
