this post was submitted on 01 Sep 2023
71 points (97.3% liked)
Canada
7188 readers
415 users here now
What's going on Canada?
Communities
🍁 Meta
🗺️ Provinces / Territories
- Alberta
- British Columbia
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunavut
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
- Yukon
🏙️ Cities / Local Communities
- Calgary (AB)
- Edmonton (AB)
- Greater Sudbury (ON)
- Halifax (NS)
- Hamilton (ON)
- Kootenays (BC)
- London (ON)
- Mississauga (ON)
- Montreal (QC)
- Nanaimo (BC)
- Oceanside (BC)
- Ottawa (ON)
- Port Alberni (BC)
- Regina (SK)
- Saskatoon (SK)
- Thunder Bay (ON)
- Toronto (ON)
- Vancouver (BC)
- Vancouver Island (BC)
- Victoria (BC)
- Waterloo (ON)
- Winnipeg (MB)
🏒 Sports
Hockey
- List of All Teams: Post on /c/hockey
- General Community: /c/Hockey
- Calgary Flames
- Edmonton Oilers
- Montréal Canadiens
- Ottawa Senators
- Toronto Maple Leafs
- Vancouver Canucks
- Winnipeg Jets
Football (NFL)
- List of All Teams:
unknown
Football (CFL)
- List of All Teams:
unknown
Baseball
- List of All Teams:
unknown - Toronto Blue Jays
Basketball
- List of All Teams:
unknown - Toronto Raptors
Soccer
- List of All Teams:
unknown - General Community: /c/CanadaSoccer
- Toronto FC
💻 Universities
💵 Finance / Shopping
- Personal Finance Canada
- BAPCSalesCanada
- Canadian Investor
- Buy Canadian
- Quebec Finance
- Churning Canada
🗣️ Politics
- Canada Politics
- General:
- By Province:
🍁 Social and Culture
Rules
Reminder that the rules for lemmy.ca also apply here. See the sidebar on the homepage:
founded 3 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
It's simple, they can either take it or leave it. If the assessments of profitability of this content are accurate, it will still be profitable for Google and Meta if they cave to demands. They'll hem and haw for a while, but they'll take the deal. At the end of the day, they're capitalist corporations, and they won't simply leave money on the floor.
That $234 M would be roughly 2% of the $11.2 B in revenues the two platforms are making in Canada. Does the Canadian news segment account for more than 2% of that revenue?
If I was the head of either of those organizations, which clearly I'm not, I would leave it. I I don't want to set a precedent for a global link taxation system I'd have to pay on all of my traffic and all countries. And once it's demonstrated on news, slippery slope applies, and then applies to More and more linked content until it applies to all links.
So I think foregoing the Canadian profit would make sense from a business perspective
Too bad for the platforms the floodgates have already been opened. Australia has already implemented similar legislation in which they caved.
https://www.wired.com/story/australia-media-code-facebook-google/
I don't think it's in the nature of capitalist corporations to put long term strategy over short term profitability.
"Then, at 1 am on February 26, 2021, news content started to reappear, reversing users’ feeds to how they always looked. But behind the scenes, tech’s relationship with the media had permanently shifted.
Google and Facebook did not leave; they paid up, striking deals with news organizations to pay for the content they display on their sites for the first time. The code was formally approved on March 2, 2021, writing into law that tech platforms had to negotiate a price to pay news publishers for their content"
I think you should take note how they made the law after the deals were struck. Canada however has already ascended their version into law, prior to the deals. There is nothing to negotiate in Canada. Abide by the law or get out.