The latest presentation of results has led to Target (Facebook) to reassess its strategy and is therefore reconsidering news deals what makes a small media group to present their news in the tabs on the social network. For this reason, the signature pays more than 10 million dollars a year and this would be a serious blow to the media according to Alexandra Bruell and Keach Hagey in The Wall Street Journal.
The company has paid average annual fees of more than $15 million to the Washington Post, just over $20 million to the New York Times, and more than $10 million to the Wall Street Journal, according to people familiar with the matter. The WS Journal fee is part of a broader Facebook News deal negotiated largely by parent company Dow Jones & Co., which includes a annual compensation worth more than 20 million dollarspeople familiar with the association said.
At the heart of these offerings is the facebook news feedwhich selects a selection of free articles for readers. Facebook, which pays news publishers to present their content without a paywall, in 2019 agreed to three-year deals with several publishers that are set to expire this year.
Facebook hasn’t given publishers any indication that it plans to renew the partnerships in their current form, or at all, according to people familiar with the matter. The company is looking shift its investments from news to products that attract creators like short-form video producers to compete with ByteDance Ltd’s TikTok., according to some people. The company is also investing heavily in the metaverseas highlighted by its recent name change to Meta.
In addition, the Meta CEO Mark Zuckerberghas been disappointed by the regulatory efforts around the world that seek to force platforms like Alphabet’s Facebook and Google to pay publishers for any news content available on their platformspeople familiar with the matter said. Such moves have dampened Zuckerberg’s enthusiasm for making news to be a bigger part of Facebook offeringsthey said.
Last month, Campbell Brown, the former NBC and CNN journalist who was the architect of Facebook Newsannounced it has taken on a new, broader role overseeing global media partnerships, encompassing ties with everything from sports leagues to movie studios.
Information previously reported that Facebook was reconsidering its payments to publishers and shifting its emphasis.
If Facebook withdraws its payments to US news publishers, it would represent the an end to some easing in the strained relationship between online content creators and the social media giant.
Publishers who have had trouble Competing for digital ad revenue with Google and Facebook have criticized the tech giants for not paying for news content that is featured and shared on their platforms. Dow Jones parent News Corp was one of the most vocal critics.
WS Journal receives the most of the Dow Jones paymentswhich are made up mostly cashbut also include other forms of compensation, such as facebook marketing credits, according to people familiar with the matter. The deal covers other Dow Jones publications as well as the new york postowned by News Corp.
Many other US news publishers they are receiving facebook payments for your content to appear in your news tab, but they only receive a fraction of the sums paid to the Washington Post, the New York Times and Dow Jonesaccording to people familiar with the matter, Facebook is paying more for access to paid contentwhile publishers whose stories are accessible for free get less money, a person familiar with the deals said. The smallest offers are usually for less than $3 million a yearpeople said.
Dow Jones, the New York Times and the Washington Post declined to comment. Last year, The Times had revenue of $2.1 billion.while Dow Jones reported $1.7 billion in revenue in its last fiscal yearwhich ended on June 30, 2021.
Facebook announced the launch of facebooknewswhich users can find as a tab on the mobile app or website, similar to the Facebook Watch for video, in the fall of 2019, on the heels of widespread criticism of the impact Facebook and Google are having. The growing share of the digital advertising market was having on news organizations, particularly local ones. In 2018, Facebook and Google earned 77% of digital ad revenue in local markets, and 1,800 US newspapers had closed since 2004.
The launch of the News tab was a big win for Brown, whom Facebook hired to improve its relationships with publishers, according to people familiar with the matter.
Facebook first launched the product in the US, offering advance payments to news organizations. It expanded it to the UK, Germany and Australia in 2021, and France this year.
Meanwhile, Facebook was facing a ongoing regulatory attack around the world. The regulators from the European Union, France, the United Kingdom, Australia and the USA. took measures to forcing platforms like Google and Facebook to pay publishers for news content available on their servicesyes Facebook was so vehemently opposed to a law passed in australia who decided block the publication of any news on its platform in the country. In the process, also ended up shutting down the Facebook pages of many of Australia’s health, charity and emergency services for five daysa move that whistleblowers allege was deliberate and that Facebook described as an accident.
This spring, a revamped version of US legislation intended to force platforms to negotiate payment with publishers began circulating in Congress, this time with a provision that would require platforms engage in baseball-style “final bid” arbitration, the same move that led Facebook to pull news in Australia. In the meantime, Canada recently proposed a law modeled on Australia’s.
Target (Facebook)closed Thursday’s session in the red at $184.79 and the location of the moving averages, the 70-period one below the 200-period one, would give us a bearish signal. Meanwhile, Ei indicators are mostly bearish.