PETERS: Trudeau government’s effort to help news organizations may have backfired
ON ITS FACE, the federal government’s move to make social media companies pay publishers for news content seems like a necessary step.
The prevalence of social media threw a wrench into what was previously a very simple and sustainable business model — companies paid publishers and broadcasters in exchange for advertising space and time. A good portion of that revenue then went to journalists in order to produce good content.
Social media became a circuit breaker. Now, many companies pay to advertise on social media, because they feel it offers a wider or more targeted reach. Social media companies like Meta and Twitter get the revenue.


