According to an article at The Atlantic Monthy, Facebook’s existing threat to journalism is well established. It is, at its core, about the flow of the advertising dollars that news organizations once counted on. In this way, Facebook’s role is a continuation of what began in 1995, when Craigslist was founded. Its founder, Craig Newmark, didn’t actively aim to decimate newspapers, but Craigslist still eviscerated a crucial revenue stream for print when people stopped buying newspaper classifieds ads.
Zuckerberg’s memo outlines a plan for the next phase of this unbundling, and it represents an expansion of Facebook’s existing threat to the news industry.
Facebook already has the money. The company is absolutely dominating in the realm of digital advertising. It notched $8.8 billion in revenue last quarter—more than $7 billion of which came from mobile-ad sales. One analyst told The New York Times last year that 85 percent of all online advertising revenue is funneled to either Facebook or Google—leaving a paltry 15 percent for news organizations to fight over.
Now, Zuckerberg is making it clear that he wants Facebook to take over many of the actual functions—not just ad dollars—that traditional news organizations once had.
Zuckerberg uses abstract language in his memo—he wants Facebook to develop “the social infrastructure for community,” he writes—but what he’s really describing is building a media company with classic journalistic goals: The Facebook of the future, he writes, will be “for keeping us safe, for informing us, for civic engagement, and for inclusion of all.”
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