Home Login RADIO ONLINE RSS Facebook
Advertisement

Study: Tech's Market Power Creates Disadvantage for Local News


Radio and television stations are not adequately compensated for their news content on technology platforms because of an imbalance in market power, according to a new study released today by BIA Advisory Services. The study found that each year broadcasters lose nearly $2 billion in value that they generate for two of the largest technology platforms through publication of their valuable content - particularly local news.

The study, "Economic Impact of Big Tech Platforms on the Viability of Local Broadcast News," found that broadcasters do not receive fair compensation for their valuable local news content because of the substantial market power exercised by large technology platforms. These platforms leverage their market power to advance their own growth to the detriment of local broadcasters, putting a severe strain on the economics and viability of local news.

Commissioned by the National Association of Broadcasters (NAB), the study uses interviews with broadcast group executives and modeling of high economic impact practices to analyze the use of broadcast content on major technology platforms. Focusing on Google Search and Facebook News Feed, the study found local broadcasters suffer an estimated total annual loss of $1.873 billion by providing their content to these platforms.

The study further concluded that no technology platform allows broadcasters to earn equitable revenue based on current practices, and algorithms do not properly weigh local broadcast news, which intentionally and unfairly undervalues broadcast content in search queries. Additionally, the study noted that broadcast content and local news are often included in search returns and news feeds alongside questionable sources and disinformation, which could diminish trusted broadcast brands and confuse users.

"Even though we focused our quantitative analysis on Google and Facebook, the market power of other platforms and services, such as Amazon and Apple, were cited as increasingly undermining the viability of local news media," said Rick Ducey, managing director at BIA Advisory Services. "The growth of these platforms presents the potential for substantial future harm to the industry if not constrained by government action."

"Radio and television broadcasters play a vital role in providing Americans with valuable news and information, shining a light on the events shaping their communities," said NAB President and CEO Gordon Smith. "Unfortunately, this study makes clear that the competitive advantage of a handful of big tech platforms prevents broadcasters from recouping their substantial investment in local news, putting local journalism at risk. Preserving quality, trusted journalism in communities will require policies that ensure broadcasters are fairly and justly compensated for their valuable content."

As part of NAB's annual State Leadership Conference, local broadcasters from across the country will be advocating on Capitol Hill this week on issues affecting the broadcast industry, including the overwhelming competitive power of digital platforms and the impact on Americans' access to quality local journalism.

Advertisement

Latest Radio Stories

UO Names McKay to Lead Atlanta, Abernethy to TX Role
Pam McKay and Doug Abernethy
Pam McKay and Doug Abernethy
Urban One appoints Pam McKay Vice President and Market Manager of its cluster in Atlanta. As VP/General Manager, she guided Urban One Houston through a successful period of transition. During her tenure there, McKay oversaw the integration of former Cox Radio outlets. In More

Island 106 Flips to ''105.9 The Wave'' in Panama City
WILN (105.9 The Wave) Panama City
WILN (105.9 The Wave) Panama City
JVC Broadcasting has extended its "The Wave" brand across the Florida Panhandle flipping CHR WILN-FM (Island 106) to "105.9 The Wave" in Panama City. The move follows the success of 102.1 The Wave in Fort Walton Beach. The new station features a playlist spanning the '70s through the 2000s. While both More

Report: Howard Stern Hints at Ownership in SiriusXM Talks
Howard Stern
Howard Stern
Howard Stern says he's in ongoing contract negotiations with SiriusXM and hinted that any new deal could involve some level of "ownership" in the company. The veteran broadcaster made the comments during an interview with fellow SiriusXM host Andy Cohen, as reported by The Hollywood Reporter. Stern, who More
Advertisement

Power 99 Philadelphia Adds ''The Breakfast Club''
The Breakfast Club
The Breakfast Club
iHeartMedia Philadelphia's WUSL-FM (Power 99) will debut The Breakfast Club on Monday, October 13. The syndicated morning show will air weekdays from 6-10am. Hosted by Charlamagne Tha God, DJ Envy, and Jess Hilarious, The Breakfast Club reaches 6.6 million listeners monthly and has featured interviews with More

FNR's Guy Benson Shares Skin Cancer Diagnosis
Guy Benson
Guy Benson
FOX News Radio host and contributor Guy Benson revealed on "The Guy Benson Show" that he was recently diagnosed with an early-stage malignant melanoma, which has since been successfully removed. During Thursday's broadcast, Benson explained that doctors discovered the cancer after he noticed changes in a More

Beasley CFO Lauren Burrows Coleman to Exit, Ups Greening
Lauren Burrows Coleman
Lauren Burrows Coleman
Beasley Media Group Chief Financial Officer (CFO) Lauren Burrows Coleman is resigning from the company, less than a year after assuming the role. The move was disclosed in a Thursday filing with the Securities and Exchange Commission. According to the filing, Burrows Coleman's departure, effective More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement