Are digital platforms failing traditional media?

Minister Ashwini Vaishnaw's recent remarks came in the backdrop of a press conference marked to celebrate National Press Day

Union Minister of Information and Broadcasting Ashwini Vaishnaw on National Press Day discussed how traditional media has been suffering from the growing dominance of digital platforms.

The minister argued that traditional media organisations invest substantially in training and  editorial processes. However, that investment is being undermined by digital platforms' unequal bargaining power.

Let's take a deeper look at the issue, like whether this is specific to India, and if not, how other countries are dealing with it.

Why is traditional media dissatisfied with digital platforms?

Traditional media outlets contend that Big Tech giants like Google and Meta unfairly profit from digital advertising, exploiting news content without compensating the original creators.

Despite investing heavily in journalism, editorial processes, and fact-checking, media organisations struggle to compete in the digital ad market, which is increasingly dominated by these platforms.

In FY24, Google and Meta's ad revenues in India surged to Rs 31,221 crore and Rs 22,730 crore, respectively, far outpacing the earnings of media houses.

Have media organisations raised their voices against this earlier? If yes, how?

Media organisations have been vocal about the unfairness of the current ad revenue-sharing practices of Big Tech companies. They argue that these tech giants, particularly Google and Meta, disproportionately benefit from the news content created by media houses without providing adequate compensation.

Organisations like the Digital News Publishers Association (DNPA) have been lobbying governments to implement regulations that mandate fair revenue-sharing between tech platforms and content creators.

What is the Indian government’s stance on this?

The Indian government has acknowledged the issue and called for greater accountability from online platforms. Vaishnaw has questioned the relevance of "safe harbour" provisions that shield platforms from liability for user content.

The government is also considering ways to safeguard the intellectual property of content creators and ensure fair compensation for media outlets, though no specific regulatory measures have yet been announced.

"While the investment for creating a team of journalists, training them, putting in place editorial processes and methods to check the veracity of news, and taking responsibility for the content is huge, both in terms of time and money, they are becoming irrelevant since these platforms are having a very unequal edge in terms of bargaining power vis-a-vis conventional media," the I&B minister said.

"The efforts made by the conventional media in creating content must be suitably compensated," he said.

What is the situation internationally?

Countries such as Australia and Canada have led the way in implementing laws that mandate revenue-sharing between big tech companies and news publishers. Australia's News Media Bargaining Code has yielded mixed outcomes. Canada came up with the Online News Act to address similar concerns.

What is Australia's News Media Bargaining Code and Canada's Online News Act?

Australia's News Media Bargaining Code mandated negotiations between news publishers and Big Tech companies, aiming to secure fair compensation for news content shared on their platforms. The code has been praised for its innovative approach, but its implementation has not been that great.

While some major publishers have successfully negotiated deals, smaller outlets have struggled to secure significant revenue.

Similarly, Canada's Online News Act, also known as Bill C-18, mandates negotiations between digital news intermediaries and news businesses, for ensuring fair compensation for news content. However, tech giants like Meta and Google has resisted its implementation, which has further led to potential restrictions on news sharing on their platforms.

What is next for India?

India is considering ways to make sure that companies like Google and Meta pay media companies fairly for news content. This could involve new laws, government-led talks, or changes to existing rules that protect these platforms from legal troubles.

Drawing lessons from Australia's and Canada's experiences, the government may also implement frameworks ensuring fair compensation to all publishers, including smaller outlets.

Industry bodies like DNPA are expected to play a key role in shaping policy, advocating for IP protection and fair deals.