The “argy-bargy” with Facebook is in the early stages of conflict, according to News Corp CEO Robert Thomson.
The social media giant says it won’t renew its three-year agreements to pay local publishers for their news appearing on Facebook.
Thomson was speaking at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco.
“There’s some argy-bargy with Facebook in Australia at the moment,” he told investors.
“We'll see what happens over the next couple of weeks, but I suspect that we haven't seen the final frame of that movie.”
He says Facebook claiming 3% of usage on its platform relates to news is “obviously a fiction, a preposterous” figure.
“I mean how much discussion is there around news?" he says. "You have the core news and then I can tell you 100% of the contemporary factual information on Facebook is news.
“And so those are the numbers that Facebook should be focused on as well as being focused on its responsibility to all Australians.”
Thomson was answering a question from Morgan Stanley analyst Andrew McLeod.
“You obviously are passionate about AI,” McLeod said.
News Corp, and other media groups, are negotiating with AI platforms for payment for the use of premium content.
Thomson said AI itself has been around for decades, with the discussion now more focused on Gen AI.
“We have been in an era where creators have been less rewarded than behemoth distributors,” he told the conference.
“And so you see, Google, Facebook, obviously enough. And the danger to the media is that Gen AI is another form of distribution and it's on amphetamines. And so that, if you're not very conscious of the risk, then the risk may outweigh the opportunity.
“As you know, for really the last 17 years or so, we've been leading the global debate on digital compensation. We have a very good relationship with Google which continues in multifaceted ways.
“But we're also well advanced in our discussions with Gen AI companies here, without being too specific.
“And I have to say that leaders like Sam Altman (CEO of OpenAI ) clearly understand the value of content integrity. They clearly see the social purpose of journalism.
“And when you start with a partner that has that orientation, the discussions are inevitably productive. So, he deserves a lot of credit, really, for his philosophical approach to what is, in the end, a commercial discussion.
“But I can't really say any more than that at this moment, but there are four or five discussions going on. We'll see how they evolve over time.
“But these are discussions taking place at a time when reaching relatively swift agreements is imperative, and for us, getting genuine recognition of the value of our content. It's important for us as a company and will have a beneficial effect on our results, but I think it's important as a community that we focus on facts, provide information.
“The swirl or maelstrom of muck out there is disfiguring communities, it's having a profoundly negative impact on a lot of young people. And unless you have … you know, what is the most contemporary form of factual information? Well, it's journalism, it captures the first frame of history.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.