Freedonia Analyst Weighs in on News Media Bid for Antitrust Exemption

News provided by

Jul 11, 2017, 10:04 ET

CLEVELAND, July 11, 2017 /PRNewswire/ -- The News Media Alliance, which represents almost 2,000 news organizations, itself made the news recently for petitioning Congress to issue an antitrust exemption so the news industry can collectively negotiate terms with distributors Facebook and Google. The announcement was preceded by an opinion piece from the alliance's chief executive, which was published by The Wall Street Journal.

"Yes, it basically comes down to who gets how much digital ad revenue", says Freedonia Focus Reports analyst Steven Richmond. "But they have a point". The crux of the argument is that alliance members provide an important public service (essentially, of filtering and credibly checking), that distributors Facebook and Google don't or won't adequately provide. They argue that Facebook and Google are using their dominant positions as news distributors to shortchange news organizations, which individually lack significant bargaining power, to the point that alliance members aren't financially sustainable. Because they offer a valuable public service, they are arguing that they should be permitted to negotiate sustainable advertising revenue terms as a group, which would normally run afoul of anti-trust laws.

Ad revenue is the lifeblood of the newspaper industry and has been the hardest hit revenue segment. According to Newspaper Publishing: United States, a report published by Freedonia Focus Reports, advertising represented 54% of industry revenue in 2015, down from 71% in 2005. Revenues attributable to this all-important segment fell 10% per year on average over the 2005-2015 period; a staggering 7x faster drop than subscriptions and sales. By comparison, internet content and search industry revenue sourced from advertising grew at a robust 21% per year over the same time, according to Internet Content & Search: United States.

More information, including forecasts to 2020, is available from:
Advertising Services: United States
https://www.freedoniafocusreports.com/Advertising-Services-United-States-FF95027/
Internet Content & Search: United States
https://www.freedoniafocusreports.com/Internet-Content-Search-United-States-FF95032/
Newspaper Publishing: United States
https://www.freedoniafocusreports.com/Newspaper-Publishing-United-States-FF25014/

About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including: