The impact of Meta’s Canadian news boycott
The decline in news audiences reported here – 43%, or 11 million daily views – is shockingly high. This follows Canada’s ill-considered battle with Meta, which led to Meta pulling news from its platforms, including Facebook, in the Canadian market last year, rather than arrange content licensing agreements with news publishers.
This amply demonstrates the vast power these tech platforms have in society and over the media industry, and so justifies the Canadian government’s worries. But it also more than shows – once again – how utterly dependent the online content ecosystem is on these channels for distribution.
Meta/Facebook obviously isn’t a monopoly, but a 43% decline in news consumption thanks to the shutting down of one set of distribution channels? It’s a safe bet that much of the rest of the traffic will be from Google, so it’s more of a duopoly.
What impact is this level of reliance on a couple of gatekeeping tech platforms – who can change their policies on a whim at any time – going to have on public awareness of current events and society at large
Elsewhere in the article we have an answer: “just 22 per cent of Canadians are aware a ban is in place”.
Shut down access to news, little wonder that awareness of news stories stays low.
Both Canada (with Meta) and Australia (with Google and Meta) have tried forcing the tech giants into doing licensing deals for content that their platforms promote. In both cases, this has – predictably – backfired, and led to the opposite effect to that intended.
But what’s the solution?
This question is becoming more urgent now that GenAI is in the mix, and starting to provide summaries of stories rather than just provide a headline, image, and link.
Meta/Google were effectively acting like a newsstand – showing passing punters a range of headlines to attract their attention and pull in an audience.
GenAI’s summarisation approach, meanwhile, is much closer to what Meta and Google were being (unfairly) accused of doing by the Canadian and Australian governments: Taking traffic away from news sites by providing an overview of the story on their own platforms.
But the GenAI Pandora’s Box has already been opened. Publishers need to move away from wishful thinking – the main cause of the failed Australian/Canadian experiments – and back to harsh reality.
Unlike the Meta news withdrawal – which could be reversed – this new threat to content distribution models isn’t going away.