Stakeholders in the publishing industry expressed growing concerns about the overwhelming control that tech giants have over the data ecosystem, leading to what they referred to as the ‘law of diminishing returns’ for publishers.
In a session chaired by Avinash Pandey, CEO, ABP, Florian Nehm, senior advisor, Axel Springer SE, Public Affairs, Dhanendra Kumar, chairman, Competition Advisory Services, Elena Perotti, Executive Director, Media Policy and Public Affairs, WAN-IFRA, Arun Anant, Founder, IncValue Advisors and Senthil Chengalvarayan, Executive Director, NDTV spoke at length on the need of policy intervention to create a fair revenue share model for news publishers.
Pandey, a seasoned publisher, highlighted the challenges faced by content providers in competing with big tech algorithms.
“They (big tech) are owning all the channels of demand and supply, so as publishers we are left at what I call the law of diminishing return every time we invest in the algorithm of big tech. We do not have data access like these companies do so how do we bridge this gap?” Pandey questioned.
Nehm echoed this sentiment.
“We cannot bridge the gap of how much data they have about our audiences because they will not give it to us. The only power that can bridge the gaps is the governments. We need the government’s help to ensure that we are handed out the data about our own readers by the platforms,” he said.
Anant, however, cautioned that publishers must choose between wanting broad reach through intermediaries and complaining about insufficient data. “You can’t have the cake and eat it too,” he said.
“On one hand publishers want the intermediaries for the large reach but on the other they complain about not having enough data. You can’t have it both ways,” he said.
According to him, negotiating more data access should be part of individual contracts based on the bargaining power of publishers.
“Publishers themselves have a lot of data and I am not sure if they are using the data they have enough. Use what you have to begin with,” he added.
Chengalvarayan argued against excessive stress and investment in data collection. He said “We should invest in what we can do with the available data.” He stressed the need for transparency, where regulators could play a pivotal role in ensuring fair practices.
Kumar, acknowledged the paradigm shift in digitization of news but emphasized the global trend of negotiations between news publishers and tech platforms. “There is an element of negotiation depending on the imbalance created and the capacity to negotiate,” he said.
Nehm focused on the arbitrary downgrading of news offerings in search engines, calling for specific regulations to address this issue. He cited the European Union’s Digital Markets Act as a potential model, emphasizing the importance of publishers collaborating and sharing insights with policymakers.
The discussion also touched on the government’s role, with Chengalvarayan urging a comprehensive approach beyond revenue sharing.
Pandey proposed exploring a model where regulators and tech companies collaborate to achieve equity in the digital landscape.
According to Perotti, the importance of quality content from news publishers and need for government support is of paramount importance.
“Stay united; accepting handouts as peanuts from tech companies diminishes power,” she said.
As the publishing industry grapples with the challenges posed by tech giants, the call for government intervention and collaborative efforts among publishers becomes increasingly vital.