Document Analysis NLP IA
FREQ, RAKE or TFIDF
Summary (IA Generated)
Concentrated economic power in the hands of tech giants and hedge funds has helped drive the decline of the news industry, according to a new report by the nonprofit, policy-focused American Economic Liberties Project released Tuesday.
Google and Facebook have monopolized the advertising market, starving online publishers of advertising revenue, the report finds.
The other major issue news publishers face is the rise of private equity funds that buy and pillage struggling newspapers.
The issues the news industry faces today are a result of shortsightedness from politicians on the harms of corporate consolidation, according to Matt Stoller, the Economic Liberties director of research and one of the report’s authors.
So if pricing is low and pricing for things like Google and Facebook is low, then that’s fine and it doesn’t matter if newspapers are wiped out.
The report states that Google and Facebook have taken over the advertising market.
Google’s control of a large amount of user data has allowed it to buy up companies involved with online advertising, the report found.
Essentially, the report argues, news outlets put in the “heavy lifting” of creating content to attract readers only for tech companies to take a large portion of their advertising revenue.
Both Facebook and Google have started initiatives to fund local news.
In 2019, Facebook announced plans to give $300 million to news organizations like the Pulitzer Center and Report for America over three years.
The other issue plaguing the news industry is the rise of private equity funds that buy newspapers and lay off staff and reduce benefits to increase revenue, according to the report.
The authors write that the Obama administration allowed private equity funds to continue to engage in “predatory business models” and strip newspapers — especially those in smaller communities — of their assets.
To save the news publishing industry, the report’s authors urge the incoming Biden-Harris administration to break up Google and Facebook’s control of advertising revenue.
The second is the Journalism Competition and Preservation Act, which would temporarily allow news publishers to collectively negotiate with Google and Facebook over certain pricing terms.
Stoller said he is optimistic policymakers will take steps in the future to break up monopolies like Google and Facebook.
“The rules are written in a way that favor Google and Facebook, and you can’t make money in a world where they’re allowed to basically take your content and make money off of it for free,” Stoller said.