Source: The Sydney Morning Herald
Summary
Google and Facebook have made deals with Australian media outlets, agreeing to pay for news content. The more deals made, the less they pay, with the effective rate potentially dropping to 1.5%. This could generate A$200-250 million for Australian journalism. The deals follow new regulations aimed at making tech giants pay for news content.
Our Reading
The announcement sounds ambitious.
Google and Facebook are paying for news content, because they have to. The more they pay, the less they pay. That’s how it works. The tech giants are generating A$200-250 million for Australian journalism, because that’s what the regulations say. It’s not like they’re doing it out of the goodness of their hearts.
The update arrives with confidence, but we’ve seen this before. The tech giants make a big deal about paying for news, but the rates keep dropping. It’s a familiar script.
The real question is, how long will it take for the next “innovation” to come along and disrupt this whole arrangement?
And let’s be real, A$200-250 million is a drop in the bucket for these tech giants. It’s a small price to pay for the privilege of dominating the online landscape.
Author: Evan Null
