Despite persistently declining trust, an aging audience, and a business model that can now be threatened by independent content creators on the internet, the legacy media is being propped up by the same tech companies that disrupted them, as outlined by a report in The Wrap. Although Facebook says it is supporting local media, the company is paying massive licensing fees to global media titans like the New York Times, Washington Post, Bloomberg, and Buzzfeed.
The Wrap reports that Facebook plans to pour $1.6 billion into the news media over a five-year period. Although little is known about which media organizations will receive the money, The Wrap found that a “handful of premium publishers” including the Washington Post, News Corp, and Bloomberg receive licensing fees from Facebook.
There aren’t many companies that can say they’ve poured hundreds of millions into journalism in the last few years. Facebook has — $600 million over since