Meta is changing how it deals with US news publishers in the wake of its first-ever drop in revenue.
Meta’s latest quarterly results were a bit of a disappointment, with the company reporting its first drop in revenue in the company’s history. As the company looks to cut expenses, it appears its news investments are among the first things to go, according to Axios.
Meta first struck the deals in 2019, agreeing to pay publishers for their content for three years. The company was paying the New York Times more than $20 million, the Wall Street Journal more than $10 million, and CNN more than $3 million.
Facebook says the move reflects what content its users are consuming.
“A lot has changed since we signed deals three years ago to test bringing additional news links to Facebook News in the U.S. Most people do not come to Facebook for news, and as a business it doesn’t make sense to over-invest in areas that don’t align with user preferences,” a Facebook spokesperson told Axios.
Campbell Brown, Meta’s VP of media partnerships, told employees the company was freeing up resources for more creative pursuits. Meta has already begun telling news publishers of its decision.