In the past two years, both Australia and Canada have passed laws aimed at forcing Google and Meta to pay news publishers for excerpts of their content that appear on the tech giants’ platforms. (Similar legislation has been proposed, but not enacted, in the US). The outcomes of the Canadian and Australian laws have, so far, been dramatically different: Google and Meta responded to the Australian legislation by signing content deals worth an estimated hundred and fifty million dollars with news outlets, but in Canada, they have pulled news content from their platforms completely (or promised to). If a user in Canada tries to post a link to a news story on Facebook, an error message pops up telling them that their post can’t be published. (Meta briefly blocked news from its platforms in Australia, before relenting.)
At the heart of such laws lies a question: what is the value of news content to the major platforms? And what they might owe the makers of that content as a result? Is it worth the hundreds of millions of dollars that Google and Meta have reportedly paid Australian publishers under that country’s law forcing them to cough up? Is it worth the three hundred million dollars that Google says it spent through its Google News Initiative, a program that has funded journalism startups and grants? What about the six hundred million dollars that Meta says it has spent doing the same since 2018? A study released two weeks ago by researchers at Columbia University argues that these sums are just a fraction of what Google and Meta should actually be paying for news. The researchers—led by Anya Schiffrin, director of the Technology, Media, and Communications specialization at Columbia’s School of International and Public Affairs—put the figure around ten billion dollars per year for Google, and two billion for Meta. So twelve billion dollars, in total.
Putting a dollar amount on the value that news content brings to Google is tricky. The company doesn’t run ads on Google News pages, and therefore generates no direct ad revenue from them. Media companies say that this ignores the broader value for Google of being able to link out to news content, which, they argue, draws users to and keeps them on Google’s platform, where they can conduct non-news searches and interact with the company’s in-house products. Different studies have tried different ways of putting a number on this value. In 2019, the News Media Alliance, a lobby group for publishers, released a study claiming that Google makes nearly five billion dollars from news—though at the time, a number of critics noted that this number seemed to have been based on an offhand comment that Marissa Mayer, a former executive at Google, made more than a decade earlier.
Note: This was originally published as the daily newsletter for the Columbia Journalism Review, where I am the chief digital writer
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