Facebook and news publishers have had a rocky relationship over the years, full of high hopes, power struggles, and messy breakups. Their latest split comes as Facebook prepares to remove its News tab globally by April 2024.
The tab first launched to fanfare in 2019 with lucrative deals for top outlets. The Wall Street Journal reportedly scored $10 million, while the New York Times and CNN pocketed $20 million and $3 million respectively. After years of tension with the media, this finally seemed a happy union. One that might “sustain great journalism and strengthen democracy,” as Facebook boldly proclaimed.
Yet only a few years later, the two sides are bitterly parting ways.
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Facebook’s Breakup with the News Industry
Facebook claims people simply don’t want news on its platform, making up less than 3% of feeds. Instead of inking deals, it now wants publishers to fend for themselves with native posts and ads. The company is clearly deprioritizing news to cut costs and pursue flashier content like video.
But the breakup is also a power play, especially in Australia where a new law forced Facebook to pay for news. After a blistering fight in 2021 involving blackouts and smear campaigns, clashes resumed in 2022 over how much publishers deserve. Rather than haggle further, Facebook is flipping the table with a dramatic exit.
Australian outlets now stand to lose up to $70 million annually in licensing fees. Particularly awkward is Facebook’s split with one-time allies like News Corp. But for the social media giant, divorcing news may simply be easier than continuing a strained marriage bound by legal red tape.
This isn’t Facebook’s first abandoned news effort either, joining the ruins of past ideas like Instant Articles. And more clumsy breakups likely await as regulations and business incentives pull the strained partners in opposing directions. Because just like volatile celebrity relationships, Facebook and the media are magnetically drawn together even while constantly fighting and storming out.
