South Africa Considers Funding Media Houses with Help from Big Tech

South Africa media funding Big Tech: South Africa is exploring the possibility of creating a fund for media houses, with contributions from big global technology firms such as Meta Platforms and Google.  

This initiative is part of the ongoing media and digital platforms market inquiry by the Competition Commission, which aims to address the challenges faced by local media outlets in the face of increasing competition from digital platforms.

The fund is designed to provide financial support to under-pressure South African media houses, particularly those that are historically disadvantaged. 

This move is seen as a way to strike a balance between supporting smaller publications and ensuring that larger media houses also benefit from the support. 

The goal is to help media businesses adapt to the changing media landscape and find new ways to generate revenue from their content.

Challenges Faced by South African Media

The Competition Commission’s inquiry has highlighted the significant impact that big tech platforms are having on the local media landscape. 

Presentations by the South African National Editor’s Forum (Sanef), Media24, Moneyweb, and other media organizations have painted a grim picture of the challenges faced by local media outlets. 

The issue of fair remuneration for journalistic content has been a recurring theme, with many calling for greater transparency and accountability from big tech companies.

The proposed fund is seen as a potential solution to address these challenges. 

By providing financial support to media houses, the fund aims to help them adapt to the changing media landscape and find new ways to generate revenue. 

This could include exploring alternative business models, such as subscription-based services or sponsored content, to supplement their traditional revenue streams.

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South Africa Media Funding Big Tech: Precedents and Comparisons

The idea of a fund supported by big tech companies is not new. 

In Australia, a similar fund was established, known as the News Media and Digital Platforms Mandatory Bargaining Code. 

This code requires big tech companies like Google and Meta to negotiate with local news organizations to pay for the use of their content. 

While the code has been successful in some ways, it has also been criticized for favoring larger media houses over smaller ones.

In South Africa, the Competition Commission is working to strike a balance between supporting smaller media outlets and ensuring that larger media houses also benefit from the support. 

The goal is to create a more sustainable media landscape that supports a diverse range of media voices and perspectives.

Broader Efforts by the Competition Commission

The proposed fund for media houses supported by big tech companies is part of a broader effort by the Competition Commission to address the challenges faced by local media outlets. 

The commission has also been investigating the impact of big tech platforms on the media landscape, including issues related to transparency, accountability, and fair remuneration for journalistic content.

Overall, the proposed fund for media houses supported by big tech companies is seen as a potential solution to address the challenges faced by local media outlets in South Africa. 

By providing financial support and encouraging innovation, the fund aims to help media businesses adapt to the changing media landscape and find new ways to generate revenue from their content.

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