Summary:
- Google transfers CAD$100 million (US$69 million) to Canadian media outlets through the Canadian Journalism Collective, marking a significant step in compensating news organizations for content usage.
- Under the Online News Act, broadcasters will receive 30% of funds while publishers get the remaining share, with individual journalists potentially receiving up to CAD$20,000 each.
- Meta (Facebook/Instagram) blocks Canadian news content in response to the law, while Google agrees to continue payments through 2025.
- The initiative aims to support Canada’s struggling news industry, where tech giants control 80% of the $14 billion online advertising market.
Google has transferred CAD$100 million (US$69 million) to the Canadian Journalism Collective, marking a pivotal moment in Canada’s efforts to support its struggling news industry. The payment, confirmed on Friday, establishes a groundbreaking arrangement between the tech giant and Canadian news organizations under the Online News Act.
The Canadian Journalism Collective, a federally incorporated non-profit led by independent publishers and broadcasters, will oversee the distribution of funds to eligible media organizations by late January 2025. Under the agreement’s terms, broadcasters will receive 30% of the funds, with public broadcaster CBC/Radio-Canada allocated 7% of the total amount.
Distribution Framework
Small print and digital outlets can expect approximately $17,000 per full-time journalist, while larger publishers will receive $13,798 per journalist. The remaining 63% of the funds will be shared among qualifying news publishers, supporting local journalism across the country.
“Google cash in the kitty is a welcome development,” stated Paul Deegan, President of News Media Canada. “This funding will give newsrooms a much-needed boost to produce more high-quality coverage of our democratic institutions.”
Industry Impact
The payment comes at a crucial time for Canadian media, which has witnessed the closure of 474 news businesses between 2008 and 2023. The Online News Act specifically targets tech companies with global revenues exceeding $1 billion and more than 20 million monthly Canadian users.
While Google has embraced the legislation with this five-year exemption agreement, Meta has taken a different approach by blocking Canadian news content on Facebook and Instagram to avoid compliance with the law.
Future Implications
The CBC News has already announced plans to utilize its share of the funding to add up to 25 journalists in underserved communities, with a particular focus on Western Canada. The agreement represents a significant shift in the relationship between tech platforms and news organizations, potentially setting a precedent for similar arrangements globally.
The deal emerges as a response to the dramatic transformation of Canada’s media landscape, where tech giants currently control approximately 80% of the country’s $14 billion online advertising market. This initiative aims to create a more sustainable future for Canadian journalism while ensuring fair compensation for news content used on digital platforms.
Source: The Daily Star
