Meta is set to make a significant change to its Facebook platform by removing the “News” tab and discontinuing payments to news publishers. This move, starting in April in the United States and Australia, marks a shift in the company’s strategy towards news distribution on its platform.
End of an Era for Facebook News
Launched in 2019, the Facebook News tab was introduced as a dedicated space for users to find, read, and share news from reputable sources. The initiative saw Meta entering into multimillion-dollar agreements with major news organizations like The Wall Street Journal, The New York Times, and CNN, with contracts reportedly worth $10 million and $3 million, respectively.
Global Rollback
The phase-out of the News tab will initially affect users in the United Kingdom, France, and Germany, followed by a broader removal in the US and Australia from the beginning of April. This decision underlines Meta’s reassessment of the value and impact of news content on its platform.
A Shift in Focus
Meta’s pivot away from news comes after acknowledging that news content accounts for less than 3% of what users see in their Facebook feed. Instead, the company intends to concentrate its efforts and resources on content that engages its audience more, such as short-form videos, aligning with user preferences and consumption trends.
Impact of Regulatory Changes
In Australia, Meta’s decision follows after the company had committed $70 million annually to secure content rights from major outlets like Sky News Australia, News Corp, and The Guardian, among others. This came in response to regulatory changes by the Australian government, which introduced a trade code mandating digital platforms to compensate news publishers for their content. However, Meta had already expressed reluctance to continue such payments in 2022, indicating a strategic pivot away from news content on its platform.
Conclusion
Meta’s decision to remove the News tab and cease payments to news publishers signals a significant change in its approach to news distribution. By refocusing on the content that resonates more with its audience, Meta aims to enhance user engagement on Facebook, even as it navigates the evolving landscape of digital news and regulatory pressures.
