Meta to stop paying news publishers on Facebook: Here's why
What's the story
Meta has revealed plans to phase out the Facebook News tab in the US and Australia by April 2024. This puts an end to news licensing agreements and discontinues new Facebook products designed for news publishers. Per Meta, news content accounts for less than 3% of what users see on their Facebook feeds, making it a minor aspect of the overall Facebook experience. To recall, Facebook News was stopped in the UK, France, and Germany last year.
Previous/existing deals
Impact on publishers and licensing deals
Meta's decision will impact publishers who previously benefited from content partnerships with Facebook. In the US, deals with major outlets like CNN, The New York Times, and The Wall Street Journal had already expired two years prior. However, in Australia, this change will cut off the $70 million/year Meta was paying to Sky News Australia, News Corp, and The Guardian under three-year agreements. They were established after the Australian government enacted the News Media and Digital Platforms Mandatory Bargaining Code.
Pivot
Meta's shift in focus and advice for publishers
As Meta shifts its focus away from news, it encourages publishers to keep sharing links on their own pages and use features like Reels and ads to drive traffic to their websites. When Facebook News was launched in 2019, the company stated its goal was to "sustain great journalism and strengthen democracy" by addressing underrepresented topics in users' News Feeds. However, with news now making up a small portion of users' overall experience, Meta is prioritizing other types of content.