News industry under siege from big tech

From disinformation campaigns to soaring skepticism, plummeting trust and economic slumps, the global media landscape has been hit with blow after blow.

World News Day, taking place on Saturday with the support of hundreds of organizations including AFP, aims to raise awareness about the challenges endangering the hard-pressed industry.

‘Broken business model’

In 2022, UNESCO warned that “the business model of the news media is broken.”

Advertising revenue — the lifeline of news publications — has dried up in recent years, with Internet giants such as Google and Facebook owner Meta soaking up half of that spending, the report said.

Meta, Amazon and Google’s parent company Alphabet alone account for 44 percent of global ad spend, while only 25 percent goes to traditional media organisations, according to a study by the World Advertising Research Center.

Platforms like Facebook “are now explicitly deprioritising news and political content”, the Reuters Institute’s 2024 Digital News Report pointed out.

Traffic from social to news sites has sharply declined as a result, causing a drop in revenue.

Few are keen to pay for news. Only 17 percent of people polled across 20 wealthy countries said they had online news subscriptions in 2023.

Such trends, leading to rising costs, have resulted in “layoffs, closures, and other cuts” in media organisations around the world, the study found.

Eroding trust

Public trust in the media has increasingly eroded in recent years.

Only four in 10 respondents said they trusted news most of the time, the Reuters Institute reported.

Meanwhile, young people are relying more on influencers and content creators than newspapers to stay informed.

For them, video is king, with the study citing the influence of TikTok and YouTube stars such as American Vitus Spehar and Frenchman Hugo Travers, known for his channel HugoDecrypte.

Growing disinformation

The advent of artificial intelligence (AI) has renewed concerns about disinformation — rife on social platforms — as the tool can generate convincing text and images.

In the United States, partisan websites masquerading as media outlets now outnumber American newspaper sites, the research group NewsGuard, which tracks misinformation, said in June.

“Pink slime” outlets — politically motivated websites that present themselves as independent local news outlets — are largely powered by AI. This appears to be an effort to sway political beliefs ahead of the US election.