Understanding the Australian News Media Bargaining Code
Before the age of Google, news publications generated most of their revenue through television, newspapers, and ad campaigns. Then the internet came along. Google became our primary source of information and allowed anybody with enough SEO know-how to produce and publish news online.
The Australian News Media Bargaining Code seeks to put power back in the hands of the publishers. Instead of relying on revenue generated purely from views and on-page advertisements, the Bargaining Code will force big tech companies like Google and Facebook to pay publishers for their content.
Furthermore, there are clauses throughout the bill that would grant these major news publications access to the inner-workings of Google’s algorithms. They will also gain access to the same user data Google and Facebook have.
A History of Digital Media in Australia
The history of digital media in Australia is marked by rapid technological advancements and shifting paradigms in the way information is disseminated and consumed. This evolution is part of a global narrative that intersects with key developments in computing and internet technologies.
In the early days of digital technology, Australian media was predominantly traditional: newspapers, television, and radio dominated the landscape. The introduction of personal computers in the late 1970s and early 1980s, spearheaded by companies like Apple and Microsoft, began to change this. Computers became more accessible to the public, laying the groundwork for a digital revolution.
The pivotal moment came with the advent of the World Wide Web in 1989, conceptualized by Tim Berners-Lee. This innovation transformed the internet from a niche tool used by academics and government agencies into a platform that would eventually become integral to daily life. Australia, like many other countries, experienced a surge in internet usage in the 1990s, with more people getting online at home and at work. This period saw the birth of many Australian online services and the digital presence of traditional media outlets.
The introduction of Cascading Style Sheets (CSS) in 1996 further revolutionized web design, allowing for more sophisticated and visually appealing websites. This development, along with the emergence of HTML5 in 2009, played a crucial role in the evolution of digital media, enabling more interactive and media-rich online experiences.
The launch of the iPhone in 2007 marked the beginning of the mobile era, dramatically changing how Australians consumed digital media. Smartphones allowed for constant internet access, leading to a surge in mobile news consumption and the growth of social media platforms. Facebook and Google became central to the digital media landscape, influencing how news was distributed and consumed.
However, the rise of digital media brought challenges for traditional media outlets. As more people turned to online sources for news, the revenue from print newspapers and television advertising declined. This shift was exacerbated by the dominance of tech giants like Google and Facebook in the digital advertising market. These companies, leveraging their massive user bases and advanced targeting capabilities, siphoned off a significant portion of advertising revenue that had previously been the lifeline of traditional media.
The Australian News Media Bargaining Code, introduced in response to these challenges, represents a significant shift in the digital media landscape. It aims to address the imbalance between tech giants and news publishers by requiring platforms like Google and Facebook to pay for news content. This legislation reflects a growing global concern about the influence of big tech on news media and the broader implications for democracy and public discourse.
Australia’s move has prompted other countries to consider similar legislation, reflecting a growing recognition of the need to regulate the digital media ecosystem to ensure a fair and competitive landscape. The Australian News Media Bargaining Code is a landmark attempt to redefine the relationship between technology companies and news media, with implications that will be closely watched worldwide.
What Australia Has Done With Facebook And Google
Discussions about the Australian News Media Bargaining Code began in the spring of 2020. From the start, Google and Facebook actively opposed this legislation. Each company adopted a distinct strategy to address the issue. Facebook made the drastic decision to prevent Australian news stories from appearing on its platform, a move that led to widespread criticism, especially because it also blocked crucial government health updates during the COVID-19 pandemic.
However, after more discussions, Facebook reversed this ban, acknowledging the critical role of news content on its platform and the public backlash it faced. Google, recognizing the importance of the Australian market, threatened to withdraw their search services from Australia. This bold move prompted intense negotiations between Google and Australian authorities. Ultimately, Google’s threat was taken seriously, and the tech giant managed to negotiate an agreement with News Corp., owned by the Murdoch family. This agreement led to modifications in certain aspects of the proposed code, reflecting a compromise that addressed some of Google’s major concerns while still aiming to support the original objectives of the legislation.
Several Countries Following Australia’s Lead
Several other countries are considering adopting measures similar to the Australian News Media Bargaining Code. Canada is at the forefront, planning to introduce a bill in mid-2021 to address the struggles of its newspaper industry. This move is partly inspired by the Australian News Media Bargaining Code, aiming to remedy the decline in the Canadian newspaper sector. According to reports, the Canadian news media industry has realized significant losses and required significant public funding, while tech giants like Facebook and Google enjoyed huge profits.
The battle against the dominance of big tech is not new. In 2014, Spain enacted legislation requiring Google News to compensate Spanish publishers for using their content. Google responded by withdrawing Spanish publishers from Google News and shutting down the service in Spain.
In the United States, tackling big tech’s influence is a rare bipartisan issue. Led by Rhode Island Representative David Cicilline (D), both Democrats and Republicans acknowledge the growing crisis caused by big tech, including the misuse of personal data and the siphoning of ad revenue from American news outlets. The U.S. political landscape is closely observing the developments in Australia and the effects of the News Media Bargaining Code.
How It’s Affecting Your Online Privacy
The internet, since its introduction into our daily lives, has been a realm where anyone with a grasp of SEO can create and circulate content that attracts significant online traffic, democratizing information dissemination in unprecedented ways. However, the introduction of the Australian News Media Bargaining Code is challenging this status quo, though it faces opposition not just from big tech firms but also from those concerned about the potential impact on the open nature of the internet.
Smaller media outlets fear that large media corporations, such as Australia’s News Corp., could gain a disproportionate benefit from this legislation. The code compels major tech companies not only to compensate news organizations for their content but also mandates them to reveal any upcoming changes in their algorithms two weeks in advance. Additionally, these companies will have to share the same user data that they use for ad targeting and content recommendation with the news publishers.
Outside of the provisions of the Australian News Media Bargaining Code, the primary revenue source for these online news outlets remains advertising. The necessity to generate website traffic for ad revenue has led to what some critics consider the unethical trend of publishing sensationalist “click-bait” headlines.
Regarding content ownership, news publishers retain their rights over the stories they create, a principle that remains central in the Australian News Media Bargaining Code. Under this new code, platforms like Google and Facebook would essentially be paying to ‘lease’ the news content for distribution on their services, marking a significant shift in the traditional dynamics of content ownership and revenue sharing in the digital age.
The World Waits and Watches
The internet’s unregulated nature has long allowed “click-bait” media to thrive, undermining ethical journalism. News outlets, facing the same challenges as those in Canada with declining physical newspaper sales and cable viewership, are increasingly dependent on ad revenue for profits. This shift has led to more sensationalized news being disseminated, particularly on platforms like Facebook and YouTube (owned by Google). These outlets use SEO strategies, including E-A-T (expertise, authoritativeness, and trustworthiness), to appear higher in Google searches.
In the midst of this, the Australian News Media Bargaining Code is being debated. It could potentially alter this dynamic, but not without controversy. Critics argue that it might enable major news publishers to gain unfair advantages, diminishing the competitive landscape for smaller players. Freed from the need for click-bait, these larger entities might dominate online news, shaping narratives to their liking. Part of the concern is that under this code, Google might have to reveal its search algorithms to these major players, enabling them to more effectively target audiences with their chosen content, possibly influencing public opinion subtly.
The Impact of the Australian News Media Bargaining Code on Cyberbullying, YouTubers, and Digital Journalism
Cyberbullying perpetuated by news media has led to numerous cases of stigmatization. These reports can leave a lasting impact on those targeted by negative coverage, who often struggle to get their perspective ranked high on Google’s search results. Under the Australian News Media Bargaining Code, these mainstream news organizations would gain privileged access to algorithmic insights, unlike their subjects.
This code also brings financial implications. The funds Google must allocate to compensate news organizations under this code could reduce the earnings of YouTube content creators. These YouTubers, some with followings surpassing traditional media outlets, risk losing support due to diminished funding.
Despite not being officially recognized as news sources, many YouTube creators offer unbiased news to audiences tired of sensationalist journalism. The effectiveness of the Australian News Media Bargaining Code in steadying the turbulent media landscape remains to be seen, as the global community closely monitors the future of Australian news reporting.
Shaping the Future: The Global Implications of the Australian News Media Bargaining Code
the Australian News Media Bargaining Code marks a significant turning point in the digital media landscape, not just in Australia, but potentially around the world. It’s a bold move to balance the scales between big tech companies and news publishers, reshaping how news content is funded and distributed in the digital age. While it aims to empower publishers and support quality journalism, the code also raises questions about the future of online news and the impact on smaller media outlets.
As other countries watch and possibly follow suit, the outcome of this pioneering legislation could influence the global conversation on the relationship between technology and media, potentially setting a precedent for how digital news content is managed and monetized worldwide. The Australian News Media Bargaining Code isn’t just a local issue—it’s a global signal of change in the digital era, with implications for digital privacy and content diversity.
