Following the news that new legislation from the Australian Government will force Facebook and Google to share advertising revenue with domestic media companies;
Oliver Lockett, Analyst at GlobalData, a leading data and analytics company, offers his view on the current challenges:
“It is a valiant attempt by the Australian Government to resolve domestic media issues by forcing these tech behemoths to give up some of their riches. However, this will not solve the structural issues facing these media companies.
“We have already passed the point of no return for traditional media. Digital platforms have fundamentally changed the way that media content is produced, distributed and consumed. Ultimately, COVID-19 will finish the job that the search and social firms started.
“Two-thirds of ad dollars go to Google and Facebook, while smaller media companies who are dependent upon income from print, radio and TV adverts will be affected the most. Advertisers are following consumers and bypassing traditional media in favour of search and social media sites to advertise. Media companies must shift focus to digital media if they are going to survive this crisis.”