Since the ratification of our Constitution, news publications have played a vital role in the United States by reporting on stories close-to-home. Unfortunately for homegrown news, the swift rise of Big Tech has run counter to the progression of local reporting.
Big Tech companies, such as Google and Facebook, have disrupted the ecosystem of smaller news outlets. According to Pew Research, more than 8-in-10 Americans now get their news online, largely through social media.
Because the production behind news is costly, advertising dollars are critical because they serve as the primary revenue stream to local broadcast operations. Now, however, the primary beneficiary of advertising revenue of local news is not the outlet that produced it, it is the large technology platforms. Tech giants keep the bulk — roughly 70 percent — of the ad dollars local news stations generate because they currently have no means to negotiate with these online platforms.
On an annual basis, local news stations lose an estimated $1.873 billion to Google Search and Facebook News Feeds by sharing their stories on these platforms. As a result, the most trusted news sources – local stations – have suffered. The lack of fair compensation for these outlets from Big Tech threatens their ability to invest in themselves to continue producing trusted, high-quality journalism.
Local broadcasters, at the very least, deserve a seat at the table to negotiate a share of revenue that’s fair for both sides. But the product of the current system in place leaves Silicon Valley billionaires reaping the rewards while news outlets struggle to maintain adequate staffing and equipment.
The first step Congress must take to fight back against the seemingly limitless control Tech giants have over the marketplace is to pass the Journalism Competition and Preservation Act (JCPA), which would remove legal barriers enabling Big Tech to dominate this space and give our local outlets the ability to negotiate fair compensation for the use of their content.
I have proudly cosponsored this legislation because it’s long past the time to put power back in the hands of local news outlets — who are our friends and neighbors — and keep advertising dollars close to home, instead of continuing to enrich Silicon Valley billionaires.