Meta’s first drop in revenue now affects US news publishers. Experts explained that these publishing houses are the first to feel the effects of the sudden loss of income.
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Facebook co-founder, chairman and CEO Mark Zuckerberg testifies before a combined Senate Judiciary and Commerce Committee hearing at the Hart Senate Office Building on Capitol Hill, April 10, 2018 in Washington, DC.
Recently, the giant tech manufacturer announced that its second quarter 2022 revenue only reached $28.82 billion. This is a big deal since the company was able to generate nearly $30 billion in 2021.
Now it looks like Meta is trying to pull its funding from areas of business it thinks are no longer useful, like the Facebook News tab.
Decline in Meta revenue affects US news publishers!
According EngadgetIn its latest report, Meta confirmed that it will no longer pay news companies to publish their content on the Facebook News tab.
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This photo taken on October 28, 2021 shows the META logo on a laptop screen in Moscow as Facebook chief Mark Zuckerberg announced that the parent company’s name was being changed to “Meta” to represent a future at beyond his struggling social network.
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“Most people don’t come to Facebook for information, and as a business it doesn’t make sense to overinvest in areas that don’t align with user preferences,” a spokesperson said. of Meta.
In recent years, the tech giant has spent millions of dollars on deals with US news publishers. These include The New York Times ($20 million), CNN ($3 million), and The Wall Street Journal ($10 million).
In total, Meta is expected to spend around $105 million. As of this writing, Meta has not confirmed where exactly it will use the withdrawn funding.
But Meta Media Partnerships Vice President Campbell Brown said they would redirect their financial resources to more creative initiatives.
What does Meta plan to do?
At press time, Meta clarified that some news publishers will still receive funding, allowing them to continue publishing their content on the social media platform.
However, Axios reported that the tech company said about 50 of them would not have their Facebook News Tab funding renewed. As Brown explained, Meta will focus on more creative content.
This means that Meta will invest more in its short video and other similar improvement projects for Facebook.
Recently, Meta reportedly planned to downgrade Facebook’s COVID-19 misinformation posts instead of deleting them.
On the other hand, Facebook’s TikTok-like features are currently being tested.
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Written by: Griffin Davis
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