If you pay attention to global business news, you have heard about what is going on in Australia and Big Tech companies. Here are the headlines.

1- News companies have given their content for free for decades through their online channels (well in exchange for advertising).

2- Tech giants, like Google and Facebook, leverage the free online content of news companies to connect people and news…and make a dime along the way.

3- With the free fall of print business models, news and journalism lack the revenue to maintain their existence. And some were even forced to become non-profit organisations.

4- Without reporting and journalists, we lose the notion of truth and our democracy is at risk (as we witnessed on Capital Hill on Jan 6th).

5- The Australian government has taken a stance in this issue by passing a bill that obliges big tech companies to pay for the access to news.

Google’s reaction

At first Google played hard ball by threatening to remove search from Australia. Imagine how many small and medium business would suffer from this scenario (as if COVID was not a battle for survival enough!). But when the Australian government held their grounds (hence the title of this article), Google made a counterproposal: News Showroom. This new product will give News companies compensation for the news that will be found via Google platforms (note: the financial details have not been disclosed because they are negotiating with each news company). Several media companies have already signed into the Google offer.

Although this is a step in the right direction, this still leaves the navigation behaviour within Google platforms. Which still potentially gives Google, and its algorithms, the power control what news you see and, more importantly, don’t see…

Update: Google stated that news companies will choose the content that they want to be showcased to users, but they have not mentioned how the priority will be assigned (ex: reputation score, user preference).

Also, the 1B$ fund Google has thrown at this seems like a lot, but when many more countries start passing bills themselves, it won’t belong before Oliver Twist (news corps) start asking for more.

Facebook’s reaction

Facebook, and its uncharismatic CEO, have decided to leave the dance altogether. Zuckerberg simply pulled the plug on all news. This has come with the unfortunate effect of also pulling the plug on comms for COVID measures…leaving the people of Australia less informed on a critical matter of health. Facebook doesn’t seem to care…or are switching to the offense in their negotiation tactics.

In all fairness, however, news feeds represent less than 5% of Facebook’s revenues, making it easier for them to walk away than Google.

Update: After a short exclusion of news content in the Facebook feed of Australians, the company agreed to the revised (Facebook can select which editing group it chooses to engage in talks with) version of Australia’s new bill. They are to negotiate with news outlets to determine the terms of compensation for content usage, and arbitration would be the outcome imposed by the Australian government if negotiations fail.

What is the worst that could happen?

Big tech companies take control of news completely. That would make them more powerful that any or all governments. Algorithms would dictate what we know and don’t know. And by the way, I have yet to see an algorithm that promotes good and truth. Most algorithms feed on controversy and create division! Imagine if, what is happening in the States, started happening across the world! If misinformation and hatred almost resulted in a US insurrection, what would our world look like if multiple counties were involved, if the governments had little power and we had to rely on big tech companies to play/select the news we have to form opinions? The mere thought terrifies me! Would you put your fate in the hands of big tech?

Why this matters for the entire world?

Because what happens in Australia will create a precedent. Every other democratic country in the world will start playing me too and will jump on this opportunity. Google & Facebook wants to take control now before things get out of hand.

What Canada is going to do about this?

1- Take action

The Prime Minister is in contact with his Australian counterpart and discussed this subject over the week of February 22nd. This comes after a bill was proposed on Feb 18th, following comments from our Minister of Culture (Steven Guilbault) on a similar stance with regards to the protection of local journalism in the current digital marketplace. The momentum seems to be gaining across the world, and recent developments indicate that Canada might follow Australia’s lead shortly.

We need our government to recognize the direct correlation between democracy and newsrooms. We need to put into place a bill that brings back a little balance in the revenue model between big tech and news media companies. We need the government to explain that they are doing this for the sake of the people…and the people need to educate themselves on this matter.

2- More news not more profit!

If Canada decides to pass a similar bill, PLEASE ensure that it comes with an obligation to inject the revenue into newsrooms (not the pockets of the media corporations owners!).

3- News cies need to go back to the drawing table (become revisionaries).

Media news corps need to figure out a new business model that is viable. They have to acknowledge that the old print model is dragging them down and a lifeline has been given to them through this bill…this is their one-time chance to completely rethink their existence. It won’t happen twice!

Paywalls seem to be an obvious way to go, with relative success depending on the publications. One might also argue that such business models eliminate the democratisation of ideas, creating a division between rich and poor for quality of information. Less validated news outlets and wiki-type of content could become the only source of truth for a large proportion of the population.

What advertisers should know?

This seems like a battle of money, it’s not… it’s a battle for democracy. It is important to support local news media through advertising dollars placed directly with those companies (not via Google, Facebook or any other distribution ‘platform’ that will take a share of the pie without contributing to creating news content.

Also, know that companies that are not willing to pay for news, will become fertile grounds for fake news and misinformation. This will also create an environment where brand safety is a concern for advertisers.

Yes, it was high time that the government intervene to bring back a little fairness in revenue share from news. HOWEVER, it might be time that advertisers recognize their role in this equation as well. That role is to place a portion of their ad spend directly with media companies (content creators).

To assist and be a meaningful contributor in this undertaking, OMG in Montreal is implementing an index (IMI) on every single media plan we issue to clients. This local media index will show the % of the budget that goes to Canadian media companies. This will allow advertisers to be more aware of where their spend goes and take intentional action the increase that support if they feel compelled to do so.

Why this must be done for the sake of the people.

Because this is not just a battle of big tech vs local media…

Because this is not just government standing up for journalism…

Because this is not just about money…

This must be done for the sake of the people because if we loose access to news and objective journalism, we loose the truth.

Photo: Ondrej Machart