Social media giant Facebook has recently announced the launch of its Facebook News tab in the UK after it inked deals with several of the countrys major news providers such as the Financial Times, The Guardian, and Sky News. According to Facebook, this news tab will feature stories from what it describes as hundreds of leading national, local, and lifestyle outlets.
Elaborating on the same, Facebook News will provide the users with top headlines and stories of the day along with a feed customized according to the personal interests of the users, as well as specific sections covering entertainment, business, sports, and science and technology stories.
It has been reported that this financial agreement aims to address some of the claims that allege that Google and Facebook are driving several news publishers out of business.
The deal is anticipated to fetch millions of pounds for the large organizations that have signed licenses under which Facebook will be able to display their headlines as well as previews of their articles in its feed.
Reportedly, these licensing agreements are in contrast with the headlines and article previews available on Google Search, which is apparently facing criticism for replicating the work of news publications without paying them. The criticism has reached to a point wherein the service has been banned in Spain and is facing action in Australia.
According to the credible sources, not all publishers have inked up-front deals with Facebook, and some are likely to be benefitted from the traffic boost that the company will provide them, or from the advertisements that will be placed in Facebooks feature of Instant Articles.
Apparently, this strategic initiative by Facebook follows a review which was conducted by the government and was published in February 2019. This review found that Facebook and Google had adverse effect on British news media as they have secured a sizeable share of revenue from online advertising.
Later in 2019, Rowland Manthorpe, correspondent from Sky News technology had reported how Google and Facebook were pushing several news media organizations out of the business. Same was supported by the statistics provided by Sky News research firm eMarketer which have shown that around 61% of media advertising of the UK was going to either Google or Facebook.