Facebook Decides Not to Pay US Media for News Content

[Image source=AP Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Meta, the parent company of Facebook, has notified U.S. media outlets that it will no longer pay for news content supply to Facebook's News Tab going forward.

According to Axios, a U.S. internet media outlet, on the 28th, Facebook announced that it will no longer pay media companies for content supply to the News Tab and will not renew existing contracts. Previously, since 2019, Facebook established a separate news space called the News Tab to attract more users through news and signed contracts to pay about $105 million (approximately 136 billion KRW) over three years to more than 50 U.S. media companies.

Under the contract, Facebook paid $20 million to The New York Times (NYT), $10 million to The Wall Street Journal (WSJ), and $3 million to CNN as content supply fees. However, Facebook recently stated that the proportion of news content in its business model has decreased and that it will not renew the contracts.

A Facebook spokesperson told Axios, "The situation now is very different from when we piloted bringing more news content to Facebook News in the U.S. three years ago. Most people do not visit Facebook to read news, so overinvesting in areas that do not align with user preferences is not businesswise reasonable." However, Axios explained that media companies can still post as much news as they want on the Facebook platform if they wish.

This content was produced with the assistance of AI translation services.