According to people familiar with the matter, Facebook under meta platforms is reassessing the company's practice of paying for news content, which may affect the revenue sources of tens of millions of dollars for many news organizations. Statistics show that Facebook reached three-year agreements with news publishers in 2019, and these agreements will expire this year. Facebook's participation is seen as a step to boost the news industry at a time when both advertising revenue and subscriptions to traditional paper media are declining.
According to people familiar with the matter, the company pays more than $15million to the Washington Post, more than $20million to the New York Times and more than $10million to the Wall Street Journal.
It is reported that Facebook has not yet provided news publishers with plans to continue the existing content cooperation arrangements. According to some people familiar with the matter, Facebook is considering shifting its investment from news to products that attract creators such as short video producers.
In addition, according to people familiar with the matter, CEO Zuckerberg of meta is disappointed with more and more regulatory measures around the world, which try to force Facebook and Google (google.us) under alphabet to pay publishers for any news content provided on their platforms. According to people familiar with the matter, "these measures have dampened Zuckerberg's enthusiasm to increase the proportion of news in the services provided by Facebook."