On 25th Feb, A new legislation has been passed in Australia mentioning big tech firms like Google and Facebook have to pay now for the news content which is going to be rolled out later this year.
The decision is made upon the ongoing tussle between big tech and media companies. The law was passed easily.
This action has a fruitful effect on the struggling media sectors because Google and Facebook have to invest in them. Whereas Google has invested millions of dollars through brokerage on some top Australian Media companies like Nine Entertainment and Rupert Murdoch’s News Corp, Facebook is still in the negotiation but has recently made its first deal with Seven West.
The agreement with Google and Facebook, the world’s largest profitable Content sharing medium will open the door for Content creators to tie up with some other big tech firms where they can share their content in exchange for payment.
It is reported that Facebook and Google are going to invest around $1 billion around the world in the next three years.
If one gets any news on Google’s “Showcase” product or Facebook’s “News” section, it means those are paid content. To see the effect, we have to wait a few more months.
Recently, the increasing dominance of advertisement through Facebook and Google has left the news organizations as the low-paying sector. Where every $100 spent on the advertisement, $49 goes to Google and $24 to Facebook, according to statistics.
Thousands of journalists have lost their jobs over the past decade due to the more focus shifting to digital advertising.
Nick Clegg, Facebook’s head of global affairs, on Thursday said, “The original draft of the law would have forced the firm to pay potentially unlimited amounts of money to multinational media conglomerates under an arbitration system that deliberately misdescribes the relationship between publishers and Facebook.”
Critics have said that the action is far from the real aftermath. They are skeptical about how effective the plan will be.
“We have always put up with advertising in order to get the information produced by news organizations,” said University of Queensland economist John Quiggin. He also wrote a blog where he said, “Now the advertising revenue is flowing to Google and Facebook, and we have no model for funding news media in the future.”
The Australian government said that this law will help the county’s journalism sustain. This new act is expected to effect within a few months.
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