BIA Advisory Services has conducted research focused on the “Economic Impact of Big Tech Platforms on the Viability of Local Broadcast News.” It found that each year broadcasters lose nearly $2 billion in value that they generate for two of the largest technology platforms through publication of their valuable content — particularly local news.
It’s an issue the NAB is bringing to the forefront.
In fact, the National Association of Broadcasters commissioned the study, which uses interviews with broadcast group executives and the modeling of high economic impact practices to analyze the use of broadcast content on major technology platforms.
Focusing on Google Search and Facebook News Feed, BIA found local broadcasters suffer an estimated total annual loss of $1.873 billion by providing their content to these platforms.
The NAB seized on this “imbalance in market power,” determining that broadcasters do not receive fair compensation for their valuable local news content because of the substantial market power exercised by large technology platforms.
That’s a wholly different issue than that tied to the floundering newspaper industry, which has suffered significant fiscal challenges since the start of the COVID-19 pandemic but has withered over 30 years of changing news consumption habits. While social media has become an important distribution platform for news stories produced by print and broadcast journalists, “these platforms leverage their market power to advance their own growth to the detriment of local broadcasters, putting a severe strain on the economics and viability of local news,” the NAB concluded after reviewing BIA’s research.
The study also finds that no technology platform allows broadcasters to earn “equitable revenue” based on current practices, and algorithms do not properly weigh local broadcast news, which “intentionally and unfairly undervalues broadcast content in search queries.”
Additionally, BIA’s research finds that broadcast content and local news are often included in search returns and news feeds alongside questionable sources and disinformation, which could diminish trusted broadcast brands and confuse users.
“Even though we focused our quantitative analysis on Google and Facebook, the market power of other platforms and services, such as Amazon and Apple, were cited as increasingly undermining the viability of local news media,” Rick Ducey, Managing Director at BIA Advisory Services, said. “The growth of these platforms presents the potential for substantial future harm to the industry if not constrained by government action.”
Speaking for the NAB, President/CEO Gordon Smith, who is retiring at the end of 2020, commented, “Radio and television broadcasters play a vital role in providing Americans with valuable news and information, shining a light on the events shaping their communities. Unfortunately, this study makes clear that the competitive advantage of a handful of big tech platforms prevents broadcasters from recouping their substantial investment in local news, putting local journalism at risk. Preserving quality, trusted journalism in communities will require policies that ensure broadcasters are fairly and justly compensated for their valuable content.”
As part of NAB’s annual State Leadership Conference, local broadcasters from across the country will be advocating on Capitol Hill this week on issues affecting the broadcast industry, including the overwhelming competitive power of digital platforms and the impact on Americans’ access to quality local journalism.
NAB previously submitted comments to the House Judiciary Committee’s Subcommittee on Antitrust, Commercial and Administrative Law as part of an investigation of alleged antitrust violations by digital platforms. Graham Media Group President/CEO and NAB Television Board Chair Emily Barr testified before the subcommittee in March at a hearing titled “Reviving Competition, Part 2: Saving the Free and Diverse Press.”
To view the BIA Advisory Services report in full, please click here.
