Facebook strikes deal with media groups
Henry Mance, Media Correspondent
Facebook has struck a landmark deal with media companies, strengthening its role as a key middleman for news.
Nine publishers, including the BBC, through its youth-oriented Newsbeat service, the Guardian and The New York Times, have agreed to publish some content directly through the social network, rather than simply hosting it on their own sites as part of a trial.
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Facebook said they will be able to keep 100 per cent of any revenue from advertising that they sell directly. Publishers can also sell remaining ad space via Facebook, which would take a 30 per cent cut.
The move comes as increasing numbers of readers rely on the social network as the portal through which they receive news. The Guardian said it received 37m referrals from Facebook in April, up 140 per cent year on year.
The deal also follows complaints by some publishers that internet groups such as Google and Facebook undermine their online business models.
Bild, the German tabloid whose owner Axel Springer has been one of Google’s loudest critics, is also part of Facebook’s programme. Rupert Murdoch’s News Corp, a critic of Google and Facebook, is not.
Industry sceptics have noted that Facebook has significant power over whether users see particular stories, and what advertising formats can be sold.
Jeff Jarvis, a professor of journalism at City University of New York, said that the distrust reflected “deal points that can be negotiated. And at least Facebook wants to negotiate.”
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Facebook has struck a landmark deal with media companies, strengthening its role as a key middleman for news.
Nine publishers, including the BBC, through its youth-oriented Newsbeat service, the Guardian and The New York Times, have agreed to publish some content directly through the social network, rather than simply hosting it on their own sites as part of a trial.
Facebook said they will be able to keep 100 per cent of any revenue from advertising that they sell directly. Publishers can also sell remaining ad space via Facebook, which would take a 30 per cent cut.
The move comes as increasing numbers of readers rely on the social network as the portal through which they receive news. The Guardian said it received 37m referrals from Facebook in April, up 140 per cent year on year.
The deal also follows complaints by some publishers that internet groups such as Google and Facebook undermine their online business models.
Bild, the German tabloid whose owner Axel Springer has been one of Google’s loudest critics, is also part of Facebook’s programme. Rupert Murdoch’s News Corp, a critic of Google and Facebook, is not.
Industry sceptics have noted that Facebook has significant power over whether users see particular stories, and what advertising formats can be sold.
Jeff Jarvis, a professor of journalism at City University of New York, said that the distrust reflected “deal points that can be negotiated. And at least Facebook wants to negotiate.”
Inside Business
News publishers will find Facebook’s bear hug hard to resist
People are silhouetted as they pose with laptops in front of a screen projected with a Facebook logo, in this picture illustration taken in Zenica October 29, 2014. Facebook Inc warned on Tuesday of a dramatic increase in spending in 2015 and projected a slowdown in revenue growth this quarter, slicing a tenth off its market value. Facebook shares fell 7.7 percent in premarket trading the day after the social network announced an increase in spending in 2015 and projected a slowdown in revenue growth this quarter. REUTERS/Dado Ruvic (BOSNIA AND HERZEGOVINA – Tags: BUSINESS SCIENCE TECHNOLOGY BUSINESS LOGO)
Notice to online publishers: Facebook is planning to make you an offer you cannot refuse. The social networking site has quickly emerged as the new power in the land when it comes to referring traffic around the internet. Just how much of a power is about to be tested.
Facebook said the scheme — named Instant Articles — would give publishers “control over their stories, brand experience and monetisation opportunities”, including access to some user data.
It would also offer “a suite of interactive features”, such as easily zoomed photos and auto-play videos. That would help improve the experience of news users who currently have to wait an average of eight seconds for stories to load, Facebook said.
Online sharing of news articles has already lured readers away from publishers’ homepages towards social media sites. According to the Pew Research Center, 39 per cent of Americans use Facebook for political news — significantly more than the proportion who use Yahoo News, Google News or Twitter.
The nine publishers initially participating in Instant Articles are The New York Times, National Geographic, BuzzFeed, NBC News, The Atlantic, The Guardian, BBC News, Spiegel and Bild.
Tony Danker, the Guardian’s international director, said it was “great to see Facebook trialling new ways for quality journalism to flourish on mobile”.
Google is considering changes to its own news service. In a bid to build bridges with publishers, last month it announced €150m in grants to digital initiatives. The Financial Times is part of that initiative, but not of Facebook’s Instant Articles.
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