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The huge mistake the govt made in regard to FB & Google and extracting money from them for news is that they allowed themselves to be trapped in news media& #39;s view of the world, most especially News Ltd& #39;s view.
They& #39;re seeing like a media company instead of seeing like a govt
They& #39;re seeing like a media company instead of seeing like a govt
This completely distorts the nature of what G & F are, and it means that the govt is imposing the wrong sort of regulation.
To understand the nature of the mistake, you have to rid yourself of a number of self-serving myths perpetuated by the media.
To understand the nature of the mistake, you have to rid yourself of a number of self-serving myths perpetuated by the media.
First, F&G are not stealing advertising from the news media: they are providing a better advertising product
Most of the advertising market they dominate they created.
F&G are mainstreet. News media sites are side streets.
Why would anyone put their billboard on the side street?
Most of the advertising market they dominate they created.
F&G are mainstreet. News media sites are side streets.
Why would anyone put their billboard on the side street?
Next, F&G do not rely on news media for content. It is a tiny % of their content.
In FB& #39;s case it& #39;s barely 4% .
On the other hand, most news orgs RELY on the traffic that F&G send to their sites: it can account for anywhere between 10&60% of their traffic
In FB& #39;s case it& #39;s barely 4% .
On the other hand, most news orgs RELY on the traffic that F&G send to their sites: it can account for anywhere between 10&60% of their traffic
There is therefore a very strong argument that F&G owe the media nothing. That they are a net benefit to those companies.
This is also why F&G will be happy to walk away from providing news content on their platforms.
They simply don& #39;t need it.
This is also why F&G will be happy to walk away from providing news content on their platforms.
They simply don& #39;t need it.
It is only when you buy into the false premise that F&G are stealing ad revenue and content from media orgs that you can convince yourself this regulatory approach is right.
And that& #39;s exactly what the govt& #39;s done, under the influence of the media itself.
And that& #39;s exactly what the govt& #39;s done, under the influence of the media itself.
None of this is to say that F&G are the good guys in all this. They aren& #39;t. They are hideous, anti-democratic, tax-dodging behemoths who abuse their power in nearly every jurisdiction in which they exist.
And that& #39;s how the govt should treat them.
As anti-democratic behemoths
And that& #39;s how the govt should treat them.
As anti-democratic behemoths
Whereas the govt& #39;s approach is to treat as something they aren& #39;t.
No wonder we can& #39;t have nice things.
Unless the Morrison govt stops seeing F&G through the eyes of their mates at News Ltd, they are never going solve this problem. As former boss of ninemsn (and one the smartest guys in this space) @halcrawford has said:
https://thespinoff.co.nz/media/03-05-2020/why-australias-plan-to-make-tech-giants-pay-for-news-wont-work/">https://thespinoff.co.nz/media/03-...
https://thespinoff.co.nz/media/03-05-2020/why-australias-plan-to-make-tech-giants-pay-for-news-wont-work/">https://thespinoff.co.nz/media/03-...
As Crawford continues, do that & then maybe we can redistribute the money in a way that supports the sort of journalism a functioning democracy requires.
But none of that happens until the govt starts to look at the problem like a govt & not as a proxy for the news media.
But none of that happens until the govt starts to look at the problem like a govt & not as a proxy for the news media.
