AMN401 Integrated Marketing Communication

News Media and Digital Platforms Mandatory Bargaining Code Bill 2020, has created turmoil between Google, Facebook, and the Australian government. The law has mandated that the multinational digital platforms will be obliged to pay to the media houses, for their right to publish on the channels. This has given rise to a ground for debate and opinions. The threat of the possible exits of Facebook and Google has also been one of the speculations. A range of possibilities and resolutions may be explored in this context.

The emerging controversy regarding the rift between media houses and the multinational giants can be studied from multiple perspectives. The evolution of the online or digital advertising landscape, over the years, can be referred to in this context. Facebook alone reportedly invested $ 600 million in the news industry, over the last three years (Mukul & Sasi, 2021). The theoretical framework related to IMC stresses the importance of stakeholder orientation (Shin, Ge & Qin, 2017). In the case of Google and Facebook, the leading media houses have traditionally been one of the key stakeholders. Both the digital platforms have catered to the perceived market need of enhanced customer outreach of the media houses. From this perspective, the media houses have earned an expansive global reader base, through the social media platforms, apart from the traditional channels. The recent legal obligation enforced by the Australian Government will potentially disrupt this traditional business model. The implications of this development can be assessed based on the perspectives of the stakeholders. Both Google and Facebook are dependents on the revenues generated by the leading media houses. However, the degree of dependence on the media houses varies to a certain extent. Google is significantly dependent on the revenues generated by the media houses. Based on a report, the revenues earned by Google crossed the $ 4.7 billion mark globally in fiscal 2018-19 (Newton, 2021). Moreover, approximately 40% of the searches on Google have been reported to be for international and global news in 2018-19 (Newton, 2021). Based on this information, it can be referred that among the two, Google has significantly more at stake in the backdrop of the legal obligations enforced by the Australian government. The proportion of the news published via Facebook, on the other hand, is much lesser as compared to Google. The observed chain of events can be analyzed based on this perception. Google has been the first one, among the two, to oblige by the laws imposed by the Australian government. As a result, the multinational has signed a contract with News Corp, the media conglomerate. At least in the initial phases, Facebook has been resisting the News Bargaining Code legislation imposed by the government (BBC, 2019). The media houses, on their part, will potentially lose a major platform to reach out to both domestic and global consumers. Eventually, if the multinational digital platforms decide to move out of the country, the media houses will have to solely depend on the traditional channels for customer outreach. The pros and cons of this eventual possibility can be assessed in this context.

With the advent of digital platforms, the media houses on a global scale have been proactively leveraging multiple channels to maximize customer outreach. In Australia alone, the revenues generated through print media were estimated to reduce by AUS $.40 in 2019-20 (PWC, n.d.). Compared to 2019-20, the revenue generated through print media is estimated to reduce by more than 14% (PWC, n.d.). During the same period, the revenue generated through the global digital platform is estimated to increase by $75 billion (PWC, n.d.). Therefore, the dominance of Google and Facebook in this context is evident. However, instant access to a global customer base has also opened up scopes of reduced authenticity of contents. Apart from the prominent and reputed media houses, a range of organizations leverages the platforms to reach out to consumers (The Economic Times, 2020). The clutter of information often creates a sense of confusion among potential consumers. Therefore, a point of view may subscribe to the notion that with the absence of Google and Facebook, overdependence on these platforms will decrease. The media houses will tend to fall back on the traditional platforms to reach out to potential consumers. Based on a perspective, the limited range of channels will also restrict the options of customer outreach. On the other hand, the reduced number of channels may also lessen the scope of clutter. The quality of news may enhance, in such case (Jiang et al. 2017). However, the absence of major digital platforms may deprive the consumers of the perceived convenience of accessing a range of news sources. In the present age, consumers, across the sectors, are accustomed to leveraging the convenience of speed and quantity. The standalone websites and the mobile apps offered by the leading media houses offer consumers a limited range of information. On the other hand, both Google and Facebook offer a bouquet of views, opinions, and information from a range of sources. Therefore, in the long run, ideally, a platform of negotiation can be put into place for all the associated stakeholders. As per information, Facebook has also subscribed to the legal obligations and signed a contract with News Corp (BBC News, 2021). It can be inferred that the media houses and the digital giants are co-dependent in terms of revenue generation and customer outreach. The optimal solution, in this case, maybe that both Google and Facebook, in the long run, may become selective in their preference of the media houses that will be entertained to publish contents. The less reputed news channels, with a lower negotiation base, maybe more preferred by the digital giants. The rationale is that both Google and Facebook will be obligated to invest the lesser amount in these cases. On the part of the government, a compromise in terms of the selective approach will have to be accepted in such a scenario.

Overall, it can be concluded that a closer analysis of the situation may reveal both potential attributes and drawbacks. The emergence of the digital platform as one of the significant current and future trends in terms of news publication is well established. The relevant stakeholders, including Google, Facebook, and the media houses will lose significant opportunities in terms of revenue and customer outreach. However, the exit of Google and Facebook may also reduce the clutter of information and choices. On the other hand, such a scenario may be at the cost of consumer convenience. Therefore, in the long run, a selective approach by the digital platforms may have to be accepted by the government and media houses.

References

BBC News. (2021). Facebook to pay News Corp for content in Australia. Retrieved 17 March 2021, from https://www.bbc.com/news/world-australia-56410335

BBC. (2019). Facebook to pay News Corp for content in Australia. Retrieved 17 March 2021, from https://www.cnbc.com/2021/02/24/facebook-to-invest-1-billion-in-news-over-next-three-years.html

Jiang, M., McKay, B. A., Richards, J. I., & Snyder, W. (2017). Now you see me, but you don't know: Consumer processing of native advertisements in online news sites. Journal of Interactive Advertising, 17(2), 92-108.

Mukul, P., & Sasi, A. (2021). Explained: In Australia versus Facebook, issues affecting media everywhere. Retrieved 17 March 2021, from https://indianexpress.com/article/explained/facebook-australia-law-media-7196280/

Newton, C. (2021). Why Google caved to Australia, and Facebook didn’t. Retrieved 17 March 2021, from https://www.theverge.com/2021/2/18/22288510/google-facebook-australia-news-media-bargaining-code

PWC. Newspapers. Retrieved 17 March 2021, from https://www.pwc.com.au/industry/entertainment-and-media-trends-analysis/outlook/newspapers.html

Shin, K. Y., Ge, F. Q., & Qin, P. F. (2017). Establishment path and management innovation of mutually beneficial nonprofit organization (MBNPO). Asia Pacific Journal of Innovation and Entrepreneurship.

The Economic Times. (2020). ET Explains: Making internet majors pay for news content they make money from. Retrieved 17 March 2021, from https://economictimes.indiatimes.com/news/et-explains/et-explains-making-internet-majors-pay-for-news-content-they-make-money-from/articleshow/77321094.cms

Do you wish you could receive law assignment help from top lawyers in the country? Now you can hire only the best industry professionals on Myassignmenthelp.co.uk. In addition, our experts provide you with in-depth dissertation help to overcome the usual hassles of writing assignments.

Additionally, you can find managers from reputable companies going out of their way to provide reliable management assignment help. Their guidance is crucial when preparing for examinations and writing research papers. Hence, whenever you wonder, "Can't someone do my assignment in the UK?” don’t settle for anything less than the best academic stalwarts on Myassignmenthelp.co.uk.