Tensions rise as Meta distances itself from news publishers

TL;DR Breakdown

  • Meta is reducing its engagement with news publishers, focusing less on current affairs on its platforms.
  • The company launched a text-based app, Threads, that prioritizes non-news content.
  • Meta is in conflict with Canada’s government over legislation requiring platforms to pay for publishers’ content.

Description

Tensions are escalating as Meta, the parent company of Facebook, Whatsapp, Threads, and Instagram grows increasingly distant from news publishers, sparking widespread concern. This move comes amidst a shift in strategy where the technology titan has been giving less attention to politics and current affairs on its platforms, while simultaneously shrugging off governmental calls for … Read more

Tensions are escalating as Meta, the parent company of Facebook, Whatsapp, Threads, and Instagram grows increasingly distant from news publishers, sparking widespread concern.

This move comes amidst a shift in strategy where the technology titan has been giving less attention to politics and current affairs on its platforms, while simultaneously shrugging off governmental calls for increased payments to media outlets.

Meta’s growing reluctance: A strategic move

In a pivotal turn, Meta has distanced itself from the traditional news sector, despite years of appeasing key publishers through the funding of non-profit journalism initiatives and forging partnerships with entities like Rupert Murdoch’s News Corp.

This alteration in stance manifests in Meta’s latest product release – Threads, a text-based application designed to rival Twitter. In less than a week, Threads managed to draw in an astounding 100 million users, thanks to its integration with the globally popular Instagram platform.

Much like Instagram, Threads prioritizes content from creators and friends over hard news or political stories. Adam Mosseri, the head of Instagram, has firmly declared the platform’s intent to avoid promoting news content.

In a controversial move, Meta has decided to exclude news from its feed in Canada, as new legislation demanding platforms pay for content from publishers and broadcasters comes into effect.

This law was formulated to uplift smaller news organizations with limited bargaining power. However, the law has been met with resistance not just from Meta, but also Google, which threatens to impose a news blackout in Canada.

The corporate tussle has elicited backlash from a host of advertisers in Canada, some of which are threatening to withdraw their advertisements. The implications for Meta are significant, given that Canada contributed approximately $3 billion to the company’s $117 billion annual revenues in 2022.

A history of friction

Historically, Meta has made attempts to ally with publishers through various initiatives, such as deals for content to be featured on Facebook’s News Tab product.

However, the senior leadership at Meta has concluded that the company’s interests conflict with those of the news industry. This stems from the notion that the growth of the company’s digital advertising business is perceived as a contributing factor to the global revenue decline experienced by newspaper groups.

Additionally, Meta’s internal research has revealed that users gravitate more towards short-form videos and content from influencers rather than news and political content. Consequently, the tech giant has reduced the presence of political content in users’ feeds since 2021.

Despite its ongoing withdrawal from the news industry, the ramifications of Meta’s actions are far-reaching.

With allegations that the company’s inadequate moderation of its applications fueled discord surrounding the election of former US president Donald Trump, as well as the 2021 Capitol building riots, the technology behemoth is treading on thin ice.

As a result, industry insiders argue that Meta will eventually suffer from the escalating rift with news publishers. The absence of reliable news sharing could potentially isolate the firm from real-world happenings, leading to the question of whether its strategy will prove sustainable in the long term.

As the tension unfolds between Meta and news publishers, the future of news content on social media platforms remains uncertain.

However, one thing is clear: the technology titan’s standoff with news organizations and governments alike is set to redefine the relationship between social media and the world of journalism.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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