- Meta Platforms (formerly Facebook) reported 11% growth in revenue for the second quarter, outperforming Google in ad growth.
- The company projected third quarter growth of up to 24.5%, which would be the first time since late 2021 that Meta has achieved 20% or more growth.
- Meta's stock rose as much as 8% in after-hours trading, reaching its highest point since February 2022.
- However, the improvement in Meta's business is partly due to diminished foreign exchange pressures, which weighed on revenues last year.
- The third quarter projection assumes that the dollar will add three percentage points to reported growth.
Meta Platforms (formerly known as Facebook) is planning to roll out a web version of its micro-messaging service, Threads, which caused investors to trade Meta's stock up by over 2%.
Canada has unveiled draft rules for a law to make internet giants pay news outlets, but Facebook remains committed to blocking news in the country.
Facebook's parent company, Meta, plans to remove the News tab in the UK, France, and Germany, prioritizing short-form video content instead. This follows previous actions to devalue news on the platform and emulate TikTok. Facebook News will only remain in the US and Australia after the changes take effect. Users will still see news article links on their feeds, and publishers can utilize Reels and the ads system to reach broader audiences. Meta will fulfill existing obligations with publishers until December, but no new deals or products will be offered in those countries. Meta is also considering ad-free paid subscriptions in Europe to address data collection and privacy concerns.
Meta is discontinuing Facebook's News tab in the UK, France, and Germany, signaling a broader shift away from news content on the platform, although news organizations can still post links and users will still have access to news content.
Meta, the parent company of Facebook, has announced that it will remove the dedicated news section from its platform in the U.K., France, and Germany, and instead focus on short-form video content like Reels, as news represents less than 3% of what users see in their feeds.
Facebook: The Unreliable News Distributor
Facebook, or rather its parent company Meta, has been making waves in the news industry recently. First, it got into a tussle with the Australian government over news payments. Then it quietly removed its revenue-sharing News tab in the US. And now, it has imposed a complete news link ban in Canada. But the drama doesn't end there. Meta is now killing off the News tab in France, Germany, and the UK, and ending funding for a local news project.
This change in policy comes ahead of impending legislation in the European Union and the UK that may require Facebook to pay for the news it shares. Meta's unwillingness to pay for news content is at the core of all these changes. While news makes up just a small percentage of content viewed on Facebook, it plays a crucial role in keeping users engaged on the platform. However, news media have been hit hard by the shift to online platforms, losing out to the advertising dominance of Google and Facebook.
Over the years, Meta has tried various strategies to financially support news organizations, but nothing has been successful. Now, it seems that Meta is giving up on paying for news altogether. This decision has faced criticism, especially from smaller publishers who rely on Facebook for referral traffic and engagement. The company's flip-flopping approach to news has highlighted the fragility of the relationship between traditional media and tech giants like Facebook.
But what does this mean for users? Well, the News tab, which most users may not even be aware of, will be removed from the Facebook app in Europe. This may not make a significant difference for users, but it does mean the end of payments to news media. Instead, Facebook will shift its focus back to video content.
In conclusion, Meta's decision to abandon news comes at a time when legislators are demanding that Facebook pays for news. The company's resistance to legislation, as seen in Australia and Canada, raises questions about its commitment to supporting news organizations. As news media look for alternative ways to reach their audiences, the future of journalism and its relationship with social media platforms remains uncertain.
