The News Media Association, the trade body for publishers, has called on Government to clamp down on Facebook and Google – which aggregate news content they have had no hand in producing – to operate within a framework that is “fair, non-abusive and respectful of media plurality”.
In a briefing to Ministers on news publishing in the digital environment, published today, the NMA said that the value chain of digital news is no longer sustainable and has become “wildly out of step with the contribution that each player makes”.
The news comes as concerns over the powerful Facebook and Google duopoly continue to mount – with the two hoovering up an estimated 90 pence for every pound spent of publishers’ digital revenue.
“There are potential benefits for news publishers in working with them, not least in terms of reaching new audiences. However, the situation is far from win-win and significant value is being captured by companies who do not invest in original journalism at the expense of those who do,” the NMA said.
“Attempts to achieve sustainability in this difficult environment are also being undermined by the restrictive practices imposed by the most powerful online platforms and by the rise of adblocking outfits, who in their own way are part of the scramble to generate ad revenues from content to which they have made no contribution.”
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The NMA added that the impact on media plurality and the functioning of democracy will be “profound”.
“Every day, the UK’s newspapers – digital and print – can be counted on to provide the subject matter of the country’s democratic conversation,” it said.
“However they can only survive if the relationship between rewards for producing journalism is commensurate with costs.”
Earlier this week, at The Future of Newsbrands conference, Trinity Mirror’s chief revenue officer, James Wildman said: “The truth is, the market isn’t rewarding context, or professionally created, quality content. That’s not to say it never will, but we’re having to compete on price with these platforms that are curators without the cost associated with creating.”
Wildman added that the cost of employing 2,000 journalists across 160 different national and regional newsbrands was an “absolutely enormous and brilliant resource”, but it left the publisher commercially compromised when it goes “toe-to-toe with companies that don’t have anyone creating content, but are taking all the revenue.”
