News outlets unhappy with Facebook deal

Gerry Smith NEWSPAPERS and other media outlets are struggling to make money from their partnerships with tech giants like Facebook and Snapchat, raising concerns about their business models in a news landscape dominated by social media platforms.

Some publishers are scaling back on Facebook’s Instant Articles program, in which they host stories on the socialmedia company’s platform instead of their own websites so they load faster on phones, according to a report by Digital Content Next, a trade group.

Media companies are frustrated that Facebook restricts the number and type of ads in Instant Articles, making it harder for them to make as much money as they can selling ads on their own websites, where they can better target readers, said the group, whose members include The New York Times, The Washington Post and ESPN. Bloomberg News is also a member of the group.

Digital Content Next found that 17 of its members generated an average of $7.7 million (R103m) in the first half of last year from third-party platforms.

Publishers express ambivalence about Facebook’s commitment to helping them make money on the social media platform, the report said.

“On the most basic level, publishers are being disintermediated, losing their relationship with their audiences, and they fear that Facebook will further encroach on their traditional businesses.”

Facebook and Twitter declined to comment. Snap Inc didn’t immediately respond to a request for comment.

Facebook has struggled with its growing role as a distributor of news to its 1.79 billion users, and has been criticised for not doing more to curb the spread of misinformation on its site.

As part of its latest outreach, Facebook is embarking on a project that includes stronger partnerships with media companies, greater support for local news and better efforts to educate users to avoid hoaxes.

Facebook also plans to let more publishers insert ads into Facebook Live videos and recently began letting media companies post branded content, or ads created by publishers.

Still, the Digital Content Next report lays bare the hesitance felt by media companies as they try to reach audiences that get their news from social media.

While working with Facebook or Snap helps them reach bigger and younger audiences, they’re publishing their work on third-party platforms and risk losing out on valuable advertising and subscription opportunities.

Some publishers are putting put less emphasis on Facebook Live, in which media companies create live video that’s hosted on the social media platform.

While some outlets have started testing ads in Facebook Live videos, others are concerned about its failure to create large-scale audiences around live events. – Bloomberg