Forcing Facebook to pay for news is killing publishers
The Australian Government’s war against Facebook and Google has had its first major casualty: Australian publishers. King Kong founder Sabri Suby argues that the ACCC’s strategy will achieve nothing but more news industry tragedies.
Facebook has called the Australian Government’s bluff, blocking Australian users from reading and sharing news. The decision was made in response to the News Media Bargaining Code, which demands that Facebook pays publishers for news, and was passed through the House of Representatives last night. Facebook’s retaliation was swift and calculated.
Publishers need Facebook, no matter how much they try to persuade us they’re happy being single. Facebook accounts for roughly 20% of most major news websites’ traffic and has always driven a decent volume of subscription revenue. According to The Verge, Facebook claims it generated an estimated A$407 million in referrals for Australian news publishers.
Small publishers need Facebook even more than News Corp, Nine or Seven ever will, and today’s response is the final nail in the coffin for many small and local news businesses around Australia who were already struggling to stay afloat.
