Rupert Murdoch Calls On Tech Giants To Pay Cable-Style Carriage Fees To “Trusted” News Providers
Rupert Murdoch Calls On Tech Giants To Pay Cable-Style
Carriage Fees To “Trusted” News Providers
by Dade Hayes and Dawn C. Chmielewski January 22, 2018
12:15pm
In a forceful statement, Rupert Murdoch has called on
digital behemoths like Facebook and Google to pay cable TV-style carriage fees
to legitimate news content providers such as News Corp., where he is executive
chairman.
“Facebook and Google have popularized scurrilous news
sources through algorithms that are profitable for these platforms but
inherently unreliable,” his statement reads. “Recognition of a problem is one step
on the pathway to cure, but the remedial measures that both companies have so
far proposed are inadequate, commercially, socially and journalistically.”
Murdoch referenced Facebook’s announcement, just days
ago, that it planned to prioritize high-quality news on the social network by
allowing users to rank news sources that they see as credible and trustworthy.
Chief Executive Mark Zuckerberg wrote that at a time of “sensationalism,
misinformation and polarization” Facebook elected to have its community
determine which should be trusted.
“There has been much discussion about subscription models
but I have yet to see a proposal that truly recognizes the investment in and
the social value of professional journalism,” Murdoch wrote. “We will closely
follow the latest shift in Facebook’s strategy, and I have no doubt that Mark
Zuckerberg is a sincere person, but there is still a serious lack of
transparency that should concern publishers and those wary of political bias at
these powerful platforms.”
Murdoch — who has been a frequent critic of the
increasingly powerful technology platforms — appears to be seizing on popular
sentiment among some in Congress, and political activists, that Facebook and
Google face greater scrutiny about their influence over the outcome of the 2016
election by serving as a platform for fake news and propaganda.
“I imagine [Murdoch] thinks now’s the time, because
Zuckerberg has been retreating of late,” said Forrester analyst James McQuivey.
“Murdoch may be in a position – maybe, just maybe, we’ll convince him to have
second thoughts about what he’s doing about the publishing ecosystem.”
Harsh economic realities are also at work. Newspaper
analyst Ken Doctor said declines in print advertising last year were far worse
than in 2016, resulting in another brutal round of newsroom layoffs.
“The idea that Google and Facebook have caused a lot of
damage through digital disruption on the core funding of the news industry
across us and Europe is not a new idea,” said Doctor. “It’s collateral damage.
They did not set out to destroy the news industry … But the fact is, the cratering of the news
industry in North America and Europe is still continuing.”
Doctor said Murdoch is advocating the position that
Facebook and Google, which collectively reaped $30 billion in profits, sound
assist an industry that they inadvertently helped destroy.
“The time has come to consider a different route. If
Facebook wants to recognize ‘trusted’ publishers then it should pay those
publishers a carriage fee similar to the model adopted by cable companies,”
Murdoch wrote. “The publishers are obviously enhancing the value and integrity
of Facebook through their news and content but are not being adequately
rewarded for those services. Carriage payments would have a minor impact on
Facebook’s profits but a major impact on the prospects for publishers and
journalists.”
Perhaps it’s not coincidental that Murdoch is taking his
stand as Facebook announced a revamp of its News Feed to emphasize personal
material over third-party news content. Many observers have warned will
disadvantage legitimate news publishers, many of which have come to rely on the
amplification Facebook provides.
Last month, ahead of the News Feed changes, the company
announced it had developed tools to help users determine whether they were
following Russian bots spreading phony posts.
Comments
Post a Comment