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Addressing the Power Imbalance: A Legislative Proposal for Effectuating Competitive Payments from Platforms to Newspapers
The purpose of this study is to explore the underpayment to newspapers from Facebook and Google attributable to the power imbalance between individual news publishers and the dominant platforms, and to describe how a pending bill in Congress—the Journalism Competition and Preservation Act (JCPA)—could effectuate competitive payments to news publishers, effectively simulating a world in which the power imbalance is removed. Facebook and Google (the “dominant platforms”) appropriate the value added of news publishers generally—and newspapers specifically—by reframing articles in rich previews containing headlines, summaries, and photos; and by curating the content alongside advertisements. This reframing and curation decrease the likelihood of a user clicking into the article, thereby depriving news publishers of clicks while enriching the dominant tech platforms. By exploiting their monopsony power over newspapers, Facebook and Google effectively pay a price of zero for accessing and “crawling” the newspapers’ content. This study finds that allowing current market forces to dictate the newspapers’ “pay shares”—that is, the portion of platform revenues that redounds to newspaper publishers—ensures that newspapers are compensated at rates significantly below competitive levels. This underpayment results in underemployment of journalists and other news employees, as well as host of social ills associated with local news deserts, including less competent local governments, greater spread of partisanship and misinformation, removal of economic stimulus to local economies, and a reduction in the diversity of viewpoints, particularly among minority populations. The best way to correct this market failure is for the government to permit the news publishers (either newspapers alone, or all news publishers) to coordinate in their dealings with the digital platforms over payment terms and conditions, as contemplated in the JCPA.
Journal Article
Mr Bowling buys a newspaper : a story of crime
In Raymond Chandler's favourite novel, Mr Bowling buys the newspapers only to find out what the latest is on the murders he's just committed... Mr Bowling is getting away with murder. On each occasion he buys a newspaper to see whether anyone suspects him. But there is a war on, and the clues he leaves are going unnoticed. Which is a shame, because Mr Bowling is not a conventional serial killer: he wants to get caught so that his torment can end. How many more newspapers must he buy before the police finally catch up with him? Donald Henderson was an actor and playwright who had also written novels as D. H. Landels, but with little success. While working for the BBC in London during the Second World War, his fortunes finally changed with Mr Bowling Buys a Newspaper, a darkly satirical portrayal of a murderer that was to be promoted enthusiastically by Raymond Chandler as his favourite detective novel. But even the author of The Big Sleep could not save it from oblivion: it has remained out of print for more than 60 years. This Detective Club classic is introduced by award-winning novelist Martin Edwards, author of The Story of Classic Crime in 100 Books, who reveals new information about Henderson's often troubled life and writing career.
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