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Facebook profits from Canadian media content, but gives little in return – The Conversation CA

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It’s a promise I can’t wait to see fulfilled. In its most recent speech from the throne, Justin Trudeau’s government pledged to ensure the revenue of web giants “is shared more fairly with our creators and media.”

As a journalism professor, I think that’s great news for Canadian journalists. Canadian media have been struggling in the past decade — and more than 2,000 jobs have been lost since the start of the COVID-19 pandemic.

But how much will the contributions from digital platforms amount to? How can we calculate what news is worth for them?

Putting a dollar value on news

I’ll focus on Facebook, both because we can extract Canadian revenues from its financial documents and also because it doesn’t have a revenue-sharing model.

For the first two quarters of 2020, Facebook reported revenues of US$924 million in Canada alone. Over 2018 and 2019, Facebook made nearly $6 billion in Canada.

It should be noted that nearly 98 per cent of this turnover comes from advertising sales — it’s the same good old business model that has sustained news media for the past 200 years, but Facebook has tailored it for the digital age using emotional manipulation.

To find out what proportion of this attention is the result of journalistic content, I used CrowdTangle, a public insights tool offered by the company to look for content on Facebook, Instagram and other social networks such as Reddit. Researchers have been able to access it since 2019, under a partnership with Social Science One.

Among other things, CrowdTangle provides access to the 30,000 publications that generated the most interactions over a given period of time. Interactions are the sum of shares, reactions (like, love, wow, haha, anger, sadness and, more recently, care) as well as comments. The tool also allows you to restrict your search to pages administered in a given country.

Calculating profit

For each of the 30 months in the period between Jan. 1, 2018, and June 30, 2020, I used CrowdTangle to identify the 30,000 posts that generated the most interactions on pages whose administrators are predominantly located in Canada. I got 900,000 Facebook posts from just over 13,000 different pages. Of these, close to 500 pages belong to news media. Together, they posted almost 80,000 items.

This means media pages have accounted for 8.9 per cent of the Canadian content on Facebook pages. This proportion of the company’s Canadian sales represents more than half-a-billion dollars since 2018.

Number of publications by language and page category, from January 2018 to June 2020.
(Jean-Hugues Roy), Author provided

Having said that, we must take into account the fact that Facebook does not generate revenue simply when a post is published, but when people interact with this content by sharing it, liking it or commenting on it. So let’s take a look at how interactions are distributed by language and page type since Jan. 1, 2018.

Number of interactions triggered by Canadian Facebook page postings, by language and page category between Jan. 1, 2018, and June 30, 2020.
(Jean-Hugues Roy), Author provided

Out of more than 7.6 billion interactions, more than 400,000 were triggered by journalistic content. That’s 5.3 per cent of the total.

This way of calculating, which weighs the place of journalistic content by the lowest number of interactions it generates, still means that the Canadian media have enabled Facebook to raise nearly a third of a billion dollars over the past two and a half years.

The gulf between Facebook and the media

Of course, my study has its limits. Facebook generates revenue in Canada when advertisers buy ads to reach Canadians. In order to more accurately measure Facebook’s revenues in Canada, it would be necessary to examine what content Canadians are viewing on this social network. But Facebook does not share this kind of information. The best we can do, therefore, is to look at what is produced by pages administered in Canada.

Friends of Canadian Broadcasting ran a campaign called Wanted to focus public and political attention on rules that allow Facebook to profit from content created by Canadian news outlets without compensation.
THE CANADIAN PRESS/Nathan Denette

Besides, it’s not only pages on Facebook. There is also content on groups and profiles. And Facebook generates revenue through Instagram, Messenger and WhatsApp. But it is only possible to collect country data through the pages.

The main takeaway from this analysis is that there is a gulf between what the media allow Facebook to generate as revenue and what Facebook returns to them. Kevin Chan, director of public policy for Facebook Canada, stated in Le Devoir recently that Facebook has spent $9 million on various journalism projects in Canada over the past three years.

Sharing revenue

There are other ways Facebook benefits the media — they can monetize their stories through “instant articles,” where content remains on Facebook in exchange for some revenue sharing with the media, or the video platforms Watch and IGTV, Facebook’s attempts to compete with YouTube.

In the United States, Facebook News, a new licensing mechanism, could allow some major media outlets to earn up to US$3 million annually.

Facebook also funds some journalism education initiatives at various universities, including Ryerson University.

However, instant articles have been abandoned by many media outlets, and creators trying Watch have gone back to YouTube. In both cases, it’s because Facebook doesn’t share enough of its revenue.

Australia introduced legislation that would force Facebook and Google to sit down with the Australian media and negotiate to share revenues. Canadian Heritage Minister Steven Guilbeault seems to have been inspired by this approach.

Facebook benefits from journalism

Facebook has reacted to Australia’s intentions by threatening to block users from sharing local and international news. Just imagine Facebook without news: Would we use it as much if all we could share with our friends was clickbait?

Making Facebook share its revenues would therefore be a triple win. First, with a little more money, the media would be able to hire more journalists. I say “a little” because I know Facebook alone won’t save the media, but it would certainly help.

Second, the federal government (and all Canadians) would win too, because supporting the production of quality journalism is a concrete way to fight misinformation.

Third, Facebook would win because Canadians would have greater assurance that it would be a source they can trust for their information needs.

Let’s block ads! (Why?)



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What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’

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Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.

NEW MOVIES TO STREAM SEPT. 9-15

Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.

— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.

— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”

AP Film Writer Lindsey Bahr

NEW MUSIC TO STREAM SEPT. 9-15

— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”

— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.

AP Music Writer Maria Sherman

NEW SHOWS TO STREAM SEPT. 9-15

— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.

Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.

— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.

— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.

Alicia Rancilio

NEW VIDEO GAMES TO PLAY

— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.

— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.

Lou Kesten

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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