Monday, January 22, 2018

The Transport Guy: Rupert Murdoch: Facebook has become 'inherently unreliable' and should pay publishers for posting on the site

Steve Kovach January 22, 2018 at 10:56AM

Rupert Murdoch

Rupert Murdoch, News Corp's executive chairman, said in a statement Monday that Facebook should start paying publishers for content displayed on the site.

"The time has come to consider a different route," Murdoch's statement says. "If Facebook wants to recognize ‘trusted’ publishers then it should pay those publishers a carriage fee similar to the model adopted by cable companies."

The statement comes over a week after Facebook announced a major change to the News Feed algorithm that will no longer favor as many posts from brands and publishers. Instead, Facebook will promote posts that are likely to encourage comments and discussion.

Facebook said Friday night it would also favor news stories from "trusted" sources picked through surveys of Facebook users. However, it did not say which publishers were considered "trusted" sources and did not elaborate on its survey methods.

Murdoch's statement criticizes Facebook and Google for creating algorithms that are "inherently unreliable" for distributing news.

Here's Murdoch's full statement:

Facebook and Google have popularized scurrilous news sources through algorithms that are profitable for these platforms but inherently unreliable. Recognition of a problem is one step on the pathway to cure, but the remedial measures that both companies have so far proposed are inadequate, commercially, socially and journalistically.

There has been much discussion about subscription models but I have yet to see a proposal that truly recognizes the investment in and the social value of professional journalism. We will closely follow the latest shift in Facebook’s strategy, and I have no doubt that Mark Zuckerberg is a sincere person, but there is still a serious lack of transparency that should concern publishers and those wary of political bias at these powerful platforms.

The time has come to consider a different route. If Facebook wants to recognize ‘trusted’ publishers then it should pay those publishers a carriage fee similar to the model adopted by cable companies. The publishers are obviously enhancing the value and integrity of Facebook through their news and content but are not being adequately rewarded for those services. Carriage payments would have a minor impact on Facebook’s profits but a major impact on the prospects for publishers and journalists.

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Rupert Murdoch: Facebook has become 'inherently unreliable' and should pay publishers for posting on the site from Business Insider: Steve Kovach

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