Meta has terminated its contracts with US publishers

Meta has decided to change its strategy regarding the distribution of “News” in the “News” tab of Facebook. On Thursday, the company said that since signing deals to grow the news category in the United States, it has cost it far more than it has brought in. It was in 2019 that Facebook began collaborating with American media so that they only show the headlines.

The said partners are The New York Times, The Wall Street Journal, CNN, The Los Angeles Times, The Washington Post, BuzzFeed News, Business Insider, NBC and USA Today. After disastrous Q2 2022 results, Meta is overhauling its social media platforms to prioritize video content and creators. Thus, it will no longer fund publishers to provide content.

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How much does Facebook spend on US media funding?

Three years ago, Facebook dramatically increased its investment in information. We’re talking here about $105 million. The company has paid $20 million to The New York Times, $10 million to The Wall Street Journal, and $3 million to CNN, among others, according to Axios. Note that initially, Facebook hired journalists to drive traffic to the news tab.

He also promised to fund partner sites such as The Guardian and The Economist for UK news. In 2020, the platform signed a deal with Rupert Murdoch’s News Corp to pay for content in Australia. Incidentally, this latest deal was made because of the Australian Parliament passing a law forcing Facebook and Google to do so.

Why is Meta going to stop funding?

A Meta spokesperson said users don’t come to Facebook for news. So, as a business, it doesn’t make sense to overinvest in areas that don’t match user credentials.

Major overhauls have been done on Meta platforms. Now people have a lot of choices on how they want to spend their time like videos creating a TikTok-like stream, games, etc.

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