Meta Platform Inc. Shakes Up News Partnerships, Removes News Tab: Millions in Transactions at Stake

  • by:
  • Source: Wayne Dupree
  • 03/01/2024
Per persons familiar with the situation, Meta Platforms Inc. has started informing U.S. publishers that it would not be renewing agreements to showcase their material on its Facebook META News page.

A individual with knowledge of the matter claims that the decision had an impact on transactions valued at more than $100 million. In recent years, Meta has secured agreements for tens of millions of dollars with news outlets including The Wall Street Journal, the New York Times, and the Washington Post, among other publications.

Early in December 2023, the firm announced that it was retiring the News tab in the UK, France, and Germany and allocating its resources to other content that users expressed a want to see more of, such short videos.

According to Meta's most recent article, there has been an 80% decrease in the amount of users in the US and Australia who have been utilizing the News tab over the last year. It seems that news accounts for less than 3% of what Facebook users view, and it is just not a significant portion of their experience. The business said, "We know that people come to Facebook to interact with others and find new possibilities, hobbies, and interests—they do not come for news and political information."

The corporation will also cease paying Australian publishers for their material when their present partnerships expire by removing the News page. Facebook responded to the then-proposed rule, which would have forced firms like Meta to pay media organizations for their material, by blocking news links in the nation a few years ago. Shortly after it began negotiating contracts with Australian media outlets, the business unlocked news connections.

The Age reports that the Australian Competition and Consumer Commission thinks Google and Meta signed agreements worth around $200 million annually with dozens of publications, including as News Corp Australia and Guardian Australia. About one-third, or $66 million, of that total comes from Meta, so its choice will undoubtedly have a significant effect on the nation's journalism industry. Furthermore, it does not seem that there will be any opportunity for negotiation: the firm made it quite clear in its statement that it would not be entering into any new commercial agreements for conventional news material in any of the locations where the News tab has already been deleted.

In the aforementioned nations, Meta has not disabled news links, thus Facebook users may still see any posts made on the social media platform. Additionally, publishers are free to keep updating their official websites with links to their pieces.


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