Posted July. 12, 2017 07:16,
Updated July. 12, 2017 07:33
More than 2,000 online and offline publishers including The New York Times and The Wall Street Journal have challenged Google and Facebook. While negotiating with the tech companies through the New Media Alliance (NMA), they will demand the U.S. Congress for a limited anti-trust exemption. The media outlets finally sought to rescue themselves as they are unable to tolerate the unfairness by online portals and social media.
Online media have been growing whereas traditional media outlets such as newspapers and magazines have been shrinking. It is particularly so in the ad market. Google and Facebook represent 70 percent of the online ad market (73 billion U.S. dollars). The large revenue of the two tech companies are thanks to users are tied into users via news or searches. The news providers, however, are losing their brand, not to mention getting a fair compensation. The ad revenue of U.S. traditional newspapers sharply dropped to one-third in a decade.
So does the Korean market where Naver and Daum Kakao dominate the online ad market. While Naver gets news from over 120 news media, it does not unveil the share of ad revenue contribution by media outlets. Though it is clear that Naver attracts ads thanks to news outlets, it is not willing to accept to reveal it. They do not disclose how they edit news and post them. Naver even say to news media outlets that raise objection, “If you don’t want to post your news, then quit.” It is a contrast to Google that said, “We want to help news publishers succeed as they transition to digital,. As over 40 percent of Korean readers read news in web portals, publishers are in a disadvantageous position.
Though Naver makes easy money from news, it does not take the responsibility. Naver was slow to react to and block fake news circulating during the presidential election. As a result, fake news media outlets blackmailing advertisers and the lack of the right public opinion threatens democracy. Bad money drives out good. Now, Naver should discuss with the media to find a way to pay the right price for the use of news. It is a way for a win-win, which is socially responsible. In addition, it should monitor posted news. In this regard, the role of the government is never small.