Facebook, the most used social media app that is being used by millions of people all over to interact with each other and keep in touch with our loved ones far away from us. The online social media and social networking service has now come up with paid news subscription product that we generally used to get from newspapers and digital publishers. The news of this subscription was announced by a top Facebook executive nearly a week after 2000 publishers in the US formed the News Media Alliance to get an anti-trust exemption from the congress party just to negotiate over advertising revenue with digital platforms.
Campbell Brown, the head of the company’s news partnerships, said Facebook will launch a subscription-based news product with initial tests that will begin in October, The Street reported late on Tuesday. Brown also said at the Digital Publishing Innovation Summit in New York City.And that is something they are doing now and are launching a subscription product.
According to Brown, the paywall idea is based on premium and metered plans and has been in the works for a while. Facebook plans to start a paywall that requires readers to become subscribers of the platform after accessing minimum of 10 articles. Facebook will also give access to publications to all subscriber data through which they can understand their audience better.The move is to let the people subscribe to publications through Facebook’s ‘Instant Articles’ feature and support major publications with metered paywalls and “freemium” models.The News Media Alliance that represents roughly 2,000 US’ national and local newspapers, including The New York Times, The Wall Street Journal and The Washington Post and other media houses have starting to interact with Capitol Hill to figure out chances for an exemption.
The senior vice-preident of News Media Alliance says that they are not looking to break up Google and Facebook by saying they have a duopoly here, there must be a way to improve the business model. According to Boyle, newspapers had thought allowing their articles to be shared on social media would earn them a piece of the digital ad market. According to media reports, Google and Facebook control nearly two-third of the digital advertising industry, and newspaper revenue from advertisements declined to $16 billion in 2016, down from about $50 billion 10 years earlier.
