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this post was submitted on 01 Sep 2023
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If these websites were someone's blog linking to a news article, I'd agree. They're not and they're not merely linking content. This isn't the open web, it's not the internet. These are platforms with captive audiences. Once you put that in the thought process, it flips the argument on its head.
And if Facebook and Google simply refuse to link to the sites that charge the money to link to them. What will happen then?
It's simple, they can either take it or leave it. If the assessments of profitability of this content are accurate, it will still be profitable for Google and Meta if they cave to demands. They'll hem and haw for a while, but they'll take the deal. At the end of the day, they're capitalist corporations, and they won't simply leave money on the floor.
That $234 M would be roughly 2% of the $11.2 B in revenues the two platforms are making in Canada. Does the Canadian news segment account for more than 2% of that revenue?
Not sure there's much reason for Meta to cave: Meta's Canada news ban fails to dent Facebook usage
Doesn't seem like news was providing Meta much value.