Australian Publishers Warn of 'Catastrophic' Impact if Meta Bans News on Facebook and Instagram
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Loading... - Bruce Stevens
- 19 Jul 2024
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Several media publishers in Australia have expressed grave concerns about the potentially devastating impact on their businesses if Meta follows through on its threat to remove all news content from Facebook and Instagram in the country.
Broadsheet Media, the publisher of the culture and community news website Broadsheet, which employs 65 full-time staff, has estimated that it could lose up to 52% of its revenue if Meta ceases to distribute news on its platforms. This loss, they told the Australian Parliament’s Joint Select Committee on Social Media and Australian Society, would make it nearly impossible for the business to survive.
Meta's threat comes in response to Australia's world-first News Media Bargaining Code, which grants the power to force digital platforms to pay for the use of news content. If designated under this code, Meta has indicated it would remove all news from Facebook in Australia.
Earlier this year, Meta announced it would end the Facebook News product in Australia, as it has done in other regions. Consequently, Meta will not renew any deals it previously made with Australian publishers. These agreements, which began to expire at the end of May, will fully terminate by December.
The potential removal of news from Facebook and Instagram would significantly affect many Australian media outlets. The reliance on these platforms for traffic and revenue is substantial, with smaller and independent publishers like Broadsheet Media facing existential threats without this distribution channel.
Australian media organizations and stakeholders are watching the situation closely. The loss of revenue from these platforms would not only impact individual businesses but also the diversity and availability of news content for Australian audiences.
The situation underscores the critical role that digital platforms play in the distribution of news content. The potential fallout from Meta's decision highlights the delicate balance between regulatory efforts to ensure fair compensation for news creators and the operational realities of major digital platforms. The outcome of this standoff could have far-reaching implications for the future of news media in Australia and beyond.
