Meta bailing from Australian news to have 'absolutely disastrous' impact

Meta’s decision to not renew its deal with Australian news media organisations to pay for news content will have an “absolutely disastrous” impact, according to Sky News Digital Editor Jack Houghton.

Executives running Australia’s largest newsrooms were informed by Meta over individual phone calls this morning in which they confirmed that the deals worth around $70 million annually will not be renewed after they expire this year.

The deals were struck with major Australian news outlets including Sky News Australia, News Corp, Seven, Nine and The Guardian.

Mr Houghton discussed the impact this decision will have on the broader Australian media landscape.

“For many newsrooms, this is going to be absolutely disastrous,” he said.

“We’re talking about $70 million that have been wiped off the budgets for newsrooms all over the country.

“That even includes our national broadcaster which was investing that money into regional journalism which we all know desperately is needed.”

Mr Houghton said Meta has been posting “absolutely record profits”.

“Billions and billions of dollars in record profits last year off the back of content which is propping up the ecosystem in Facebook,” he said.

“Right now, we’re going to have to watch very closely how the government handles this situation.

“Because if the government doesn’t designate them a platform under the News Bargaining Code, and lets Facebook get away with this, we could be in a situation where newsrooms are shutting down, or even worse, Australians are restricted in the mediums in which they can actually access that news.”

Meta bailing from Australian news to have ‘absolutely disastrous’ impact