Buzzfeed CEO: Google, Facebook Should Share More Revenue
Orowo Eleyae
Buzzfeed CEO: Google, Facebook Should Share More Revenue
https://www.wsj.com/articles/buzzfeed-ceo-google-facebook-should-share-more-revenue-1508356543
Jonah Peretti, the BuzzFeed Chief Executive, believes that Facebook and Google will have to find more effective ways to share revenue with media companies in order to support quality content. It is believed that with all the change that is taking place in the business model of news, Google and Facebook are taking all the revenue without paying for things such as fact checking, reporting and other important aspects of what makes quality news outlets.
A growing number of news outlets are moving towards subscription models. The problem with this is that the news will then be limited to a smaller population of people. on the other hand, Facebook uses low-cost content. Peretti believes that Facebook is aware of the situation and will start creating more ways that other media companies can earn revenue on the facebook platform. More digital ad spending is flowing to Google and Facebook.
63% of U.S. digital ad dollars are expected to go to google and Facebook this year. If this happens, there would be a significantly low percentage of U.S. digital ad dollars to go around other companies such as Buzzfeed. He believes that the big tech companies such as Facebook and Google are now a mix of not only a source of news and entertainment, but also a platform where individuals can communicate.
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