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submitted 1 year ago by festus@lemmy.ca to c/canada@lemmy.ca
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[-] Enkers@sh.itjust.works 6 points 1 year ago

It's simple, they can either take it or leave it. If the assessments of profitability of this content are accurate, it will still be profitable for Google and Meta if they cave to demands. They'll hem and haw for a while, but they'll take the deal. At the end of the day, they're capitalist corporations, and they won't simply leave money on the floor.

That $234 M would be roughly 2% of the $11.2 B in revenues the two platforms are making in Canada. Does the Canadian news segment account for more than 2% of that revenue?

[-] ryper@lemmy.ca 10 points 1 year ago* (last edited 1 year ago)

Not sure there's much reason for Meta to cave: Meta's Canada news ban fails to dent Facebook usage

Daily active users of Facebook and time spent on the app in Canada have stayed roughly unchanged since parent company Meta started blocking news there at the start of August, according to data shared by Similarweb, a digital analytics company that tracks traffic on websites and apps, at Reuters' request.

Another analytics firm, Data.ai, likewise told Reuters that its data was not showing any meaningful change to usage of the platform in Canada in August.

Doesn't seem like news was providing Meta much value.

[-] jet@hackertalks.com 7 points 1 year ago* (last edited 1 year ago)

If I was the head of either of those organizations, which clearly I'm not, I would leave it. I I don't want to set a precedent for a global link taxation system I'd have to pay on all of my traffic and all countries. And once it's demonstrated on news, slippery slope applies, and then applies to More and more linked content until it applies to all links.

So I think foregoing the Canadian profit would make sense from a business perspective

[-] Enkers@sh.itjust.works 9 points 1 year ago* (last edited 1 year ago)

Too bad for the platforms the floodgates have already been opened. Australia has already implemented similar legislation in which they caved.

https://www.wired.com/story/australia-media-code-facebook-google/

I don't think it's in the nature of capitalist corporations to put long term strategy over short term profitability.

[-] dortydoozer@lemmy.ca 3 points 1 year ago

"Then, at 1 am on February 26, 2021, news content started to reappear, reversing users’ feeds to how they always looked. But behind the scenes, tech’s relationship with the media had permanently shifted.

Google and Facebook did not leave; they paid up, striking deals with news organizations to pay for the content they display on their sites for the first time. The code was formally approved on March 2, 2021, writing into law that tech platforms had to negotiate a price to pay news publishers for their content"

I think you should take note how they made the law after the deals were struck. Canada however has already ascended their version into law, prior to the deals. There is nothing to negotiate in Canada. Abide by the law or get out.

this post was submitted on 01 Sep 2023
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