Arlington, VA – The News/Media Alliance applauds the Canadian government for today’s deal with Google for its payment for the use of valuable news content on its Search platform. The amount negotiated is reported to be $100 million per year, down from the $172 million called for by the Canadian government.

The Canadian government passed legislation (C-18, the Online News Act) earlier this year that requires Big Tech platforms such as Google and Meta to pay news publishers for the use of their content. The Online News Act is due to take effect in December.

“This is a very big win for Canadian news publishers and shows that Google will commit to paying fair market value for quality journalism,” stated News/Media Alliance President & CEO Danielle Coffey. “This proves, yet again, that legislation is the only path to sustained right to payment for the fair market value of our quality content. The U.S. must stand up for our vibrant journalism industry and not fall behind other countries. Big Tech cannot continue to harm local news. Congress must protect our democracy and our constitutional right to a free press by implementing legislation that will help sustain quality journalism in America.”

Canada is the latest in a string of countries around the world that have recognized the need to protect quality journalism and passed legislation requiring the tech platforms to pay news publishers for use of their content, including Australia, the United Kingdom, and the European Union.

The Canada bill and today’s deal build momentum for the California Journalism Preservation Act (CJPA – AB 886, introduced earlier this year by California Assemblymember Buffy Wicks (D-Oakland)) – the goal of which will be discussed at an informational hearing next week – and the federal Journalism Competition and Preservation Act (JCPA) (S.1094, reintroduced in March by Senators Amy Klobuchar (D-MN) and John N. Kennedy (R-LA)) in the U.S. The Senate Judiciary Committee voted favorably in June for the JCPA, which would allow digital journalism providers to collectively negotiate with Google and Facebook for fair compensation for use of their valuable content.

The JCPA has broad support, not only in Congress in both the House and the Senate, but also from over 300 consumer interest groups, unions, conservatives, advocacy groups and third-party organizations that have sent letters of support for the JCPA to the bill sponsors.

The tech platforms are the dominant distributors of news content, reaping tremendous financial benefit without compensation to those who create the content. They also capture the majority of U.S. digital ad revenue, leaving local publishers with little to reinvest in the production of high-quality journalism.

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The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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Arlington, VA – The Senate Judiciary Committee has favorably voted 14-7 for the bipartisan Journalism Competition and Preservation Act (JCPA) (S. 1094), which would allow digital journalism providers to collectively negotiate with Google and Facebook for fair compensation for use of their valuable content. The tech platforms are the dominant distributors of news content, reaping tremendous financial benefit without compensation to those who create the content. They also capture the majority of U.S. digital ad revenue, leaving local publishers with little to reinvest in the production of high-quality journalism.

“For too long, Big Tech has profited from using news content on their platforms, without paying the creators of that content. The JCPA will give small and local publishers a seat at the table and channel critical revenue to them to help sustain the high-quality journalism Americans need and depend on,” said News/Media Alliance President & CEO Danielle Coffey. “We applaud Chairwoman Klobuchar and Senator Kennedy for their enduring commitment to preserving journalism and their ongoing support of the JCPA. We applaud the Senate Judiciary Committee’s passage of this monumental legislation for journalism publishers across our country.”

The JCPA has broad support, not only in Congress in both the House and the Senate (16 co-sponsors in the 118th Congress to date, on both sides of the aisle, with 90 total co-sponsors in the previous Congress), but also from over 300 consumer interest groups, unions, conservatives, advocacy groups and third-party organizations that have sent letters of support for the JCPA to the bill sponsors.

In January, seven leading journalism, media, and pro-consumer antitrust advocacy organizations – including the News/Media Alliance, National Newspaper Association, America’s Newspapers, Authors Guild, American Economic Liberties Project, Inter American Press Association, and the Radio Television Digital News Association – sent a joint letter to President Biden urging him to call on Congress to advance the JCPA. The letter outlines the plight of local news, in which news publishers have been forced to play by Big Tech’s rules of the digital advertising playing field for years, resulting in the loss of more than a quarter of U.S. newspapers since 2005 and the spread of news deserts across the country. In their letter, the groups underscore the importance of passing the JCPA as the best solution to ensuring news publishers are compensated fairly for use of their content by the dominant tech platforms.

In addition, over 24,000 individuals have signed a Change.org petition for the bill and over 1,000 editorials and op-eds in support of the JCPA have been published in newspapers in 48 states across the country. In a poll of 1,000 U.S. adults conducted last spring by Schoen Cooperman Research for the News/Media Alliance, 70 percent of Americans said they support Congress passing the JCPA.

Claims made about the bill by the opposition are unfounded and not supported by the text of the legislation. Under the JCPA, jobs will be created; news outlets will publicly disclose funds received and how it is spent; payment will not be required for links; and platforms will not be forced to carry extreme content. The JCPA will lead to open and vetted compensation for digital journalism outlets for the fair market value the platforms receive. The Myths and Facts around these claims are important to honest and productive discourse.

The Alliance thanks Senator Klobuchar, Senator Kennedy, and all of the co-sponsors of this bill for their leadership in pursuing this legislation and for their commitment to a free press.

The markup proceedings can be viewed here.

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The News/Media Alliance is a nonprofit organization representing more than 2,000 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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After incorporating several amendments, the Committee ultimately voted to report the JCPA out favorably and send the bill to the Senate floor.

“We applaud Senators Klobuchar, Kennedy, Durbin and Grassley for their support of the JCPA and their dedication to sustaining quality journalism. Today’s markup and vote was a major step towards getting small and local news publishers the fair compensation they deserve for their content,” said News/Media Alliance President & CEO David Chavern. “We thank Chairman Nadler, Chairman Cicilline, and Ranking Member Buck for their support for local journalism and call on Chairman Nadler to bring the bill before the House Judiciary Committee for a vote next week, likely the last opportunity to move the JCPA out of Committee before the midterm elections.”

The Alliance thanks the many co-sponsors of the bill for their leadership in pursuing this legislation and for their commitment to sustaining quality journalism.

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There was broad agreement voiced by members of the Committee that something must be done to solve the imbalance between Big Tech and local news, with healthy debate around how to best address the market imbalance in which the tech platforms create their own, selfishly motivated rules for the online marketplace around speech and compensation to publishers.

Though progress was being made during the markup and the bill sponsors successfully navigated several proposed amendments, debate was held to reconcile an amendment raised.

“Today’s Senate Judiciary Committee markup showcased the many ways in which Google and Facebook have used and abused news publishers and been allowed to profit from their content,” said News/Media Alliance President & CEO, David Chavern. “We applaud Senators Klobuchar, Kennedy, Durbin, and Grassley for their leadership in throwing a lifeline to local news, and we encourage the Committee to resume debate expeditiously and ultimately pass the bill.”

The JCPA has broad support, not only in Congress where it has strong support in both the House and the Senate (on both sides of the aisle – including 79 total co-sponsors), but also from 215 consumer interest groups, unions, conservatives, advocacy groups and third-party organizations that have shown support for the JCPA by sending letters of support to the bill sponsors. In addition, nearly 24,000 individuals have signed a Change.org petition for the bill and nearly 1,000 editorials in support of the JCPA have been published in newspapers in 48 states across the country. In a recent poll of 1,000 U.S. adults conducted by Schoen Cooperman Research for the News/Media Alliance, 70 percent of Americans said they support Congress passing the JCPA.

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Claims made by the opposition are wholly unfounded and are not supported by the text of the legislation. The Myths and Facts around these claims are important to honest and productive discourse. Jobs will be created; news outlets will publicly disclose funds received and how it is spent; there is no payment required for links of any sort; and extreme content already exists and is currently paid for by Google and Facebook with no public transparency, while traditional local newspapers are being left behind. According to an article just published by The Wall Street Journal, marketplace arrangements are not the answer. The JCPA will lead to open and vetted compensation for news outlets for the fair market value the platforms receive.

The JCPA has broad support, not only in Congress where it has strong support in both the House and the Senate (on both sides of the aisle – including 79 total co-sponsors), but also from 215 consumer interest groups, unions, conservatives, advocacy groups and third-party organizations that have shown support for the JCPA by sending letters of support to the bill sponsors. In addition, nearly 24,000 individuals have signed a Change.org petition for the bill and nearly 1,000 editorials in support of the JCPA have been published in newspapers in 48 states across the country. In a recent poll of 1,000 U.S. adults conducted by Schoen Cooperman Research for the News/Media Alliance, 70 percent of Americans said they support Congress passing the JCPA.

The Alliance thanks the many co-sponsors of the bill for their leadership in pursuing this legislation and for their commitment to sustaining quality journalism.

“For too long, the tech platforms have used – and profited from – news content without paying the creators of that content, which has done serious damage to high-quality journalism. This is our chance to fix the source of that damage, with meaningful legislation that will level the playing field and flow revenue back to the original creators,” said News/Media Alliance President & CEO David Chavern. “We applaud Chairwoman Klobuchar, Senator Kennedy, Chairman Cicilline, and Ranking Member Buck for their ardent commitment to journalism and steadfast support of the JCPA, and we look forward to the Senate Judiciary Committee’s markup leading to a vote and passage of this critical legislation for local news publishers across our country.”

The markup proceedings can be viewed live here.

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Media contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The post Statement: News/Media Alliance Applauds Bipartisan Journalism Competition and Preservation Act (JCPA), to be Voted On at Senate Markup Tomorrow appeared first on News/Media Alliance.

The JCPA would allow local news publishers to come together to collectively negotiate with the Big Tech platforms, such as Google and Facebook, for fair compensation for use of their content. Currently, small and local publishers do not have the ability to negotiate these deals on their own, as the dominant tech platforms capture the majority of U.S. digital ad revenue, leaving local publishers with little to reinvest in the production of high-quality journalism.

News/Media Alliance President & CEO David Chavern said, “We applaud Chairwoman Klobuchar, Senator Kennedy, Chairman Cicilline, and Ranking Member Buck for their leadership in progressing the JCPA and for their hard work and dedication to fighting for the future of local journalism through pursuing fair and just compensation for news publishers. The time to act is now.”

The JCPA has broad support, not only in Congress where it has strong support in both the House and the Senate (on both sides of the aisle – including 79 total co-sponsors), but also from 215 consumer interest groups, unions, conservatives, advocacy groups and third-party organizations that have shown support for the JCPA by sending letters of support to the bill sponsors. In addition, nearly 24,000 individuals have signed a Change.org petition for the bill and nearly 1,000 editorials in support of the JCPA have been published in newspapers in 48 states across the country. In a recent poll of 1,000 U.S. adults conducted by Schoen Cooperman Research for the News/Media Alliance, 70 percent of Americans said they support Congress passing the JCPA.

The Alliance thanks the many co-sponsors of the bill for their leadership in pursuing this legislation and for their commitment to sustaining quality journalism.

View the joint House and Senate press release on the release of the bill text here.

Click here to view a full list of third-party support organizations and bill co-sponsors.

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Media contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

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The Alliance is pleased to report that the latest stimulus package, introduced by U.S. Speaker of the House Nancy Pelosi, includes support for local news in the form of an affiliation waiver allowing more news publishers to apply for Small Business Administration (SBA) loans under the Paycheck Protection Program (PPP). The Speaker’s proposal includes a waiver for news publishers to apply for PPP loans as individual, independent entities, despite ownership by companies with other small news publishers or non-news businesses, allowing more publishers to qualify for the vital loans.

During the coronavirus pandemic, news publishers across the country are providing quality, real-time information that is necessary for keeping communities informed of health-related developments, closures, re-opening plans and other critical information. News outlets should benefit equally from the relief provided by Congress in the CARES Act, which provided significant funding through the Paycheck Protection Program. The Alliance applauds Speaker Pelosi for recognizing the importance of expanding SBA loan eligibility to these news publishers that are providing news at the local level and looks forward to the consideration of Speaker Pelosi’s package, which is expected to be acted upon over the next week.

This effort was led early on by Chairman David Cicilline (D-RI) and Ranking Member Jim Sensenbrenner (R-WI), who sent a bipartisan letter with over 125 Members to support the inclusion of relief through expanded SBA loans for affiliated news publishers. The Alliance is grateful for the continued support of these champions for local news.

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Today a bipartisan letter was sent from four influential U.S. Senators Maria Cantwell (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), and John Boozman (R-ARK) to their Senate colleagues urging support for expanding U.S. Small Business Administration loan access to struggling local newspapers.

Under the original SBA loan program — the Paycheck Protection Program (PPP) that was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act – newspapers with fewer than 1000 employees were made eligible for forgivable SBA loans to help cover employee salaries, benefits, rent payments and other essential operating costs. While providing welcome relief to some media outlets, the restriction on newspapers that are part of other newspaper groups or non-news business unnecessarily penalizes thousands of local newspapers across the country that operate in hometowns across America. This harmful exclusion would be corrected under the proposal offered by Sens. Cantwell, Kennedy, Klobuchar and Boozman.

As the letter from the four Senators explains, newspapers and broadcasters are facing unprecedented carnage in the local advertising market. At the same time, consumers are flocking to newspapers and local broadcasting for credible and trustworthy news in record numbers.

The Alliance thanks Sens. Cantwell, Kennedy, Klobuchar and Boozman and strongly endorses their legislative initiative.

Here are quotes that can be attributed to both News Media Alliance President & CEO David Chavern and NAB President Gordon Smith:

“During this time of unprecedented uncertainty, reliable local news and information is more important than ever,” said News Media Alliance President and CEO David Chavern. “SBA loans have allowed some local news publishers to keep reporters employed and their newsrooms running as an essential function. But too many publishers have been left out because they are part of groups with other small publishers or non-news businesses. We are requesting changes to the SBA loan program would allow funds to flow to more local newsrooms, and help them to continue doing the work that sustains communities during a time of crisis. We applaud Senators Cantwell, Kennedy, Klobuchar, and Boozman for their leadership in pushing for this measure and we call on Congress to expand the SBA program to cover local news outlets.”

“NAB is grateful to Senators Cantwell, Kennedy, Klobuchar and Boozman for their leadership in supporting expanded access to Small Business Administration loans for local radio and television stations under the Payroll Protection Program,” said NAB President Gordon Smith.  “America’s broadcasters are providing trusted and credible lifesaving coverage to keep citizens safe during the COVID-19 pandemic, yet local stations are suffering advertising losses of historic proportion that will undermine this critically important service. We urge Congressional leaders to support this proposal to provide immediate SBA loan eligibility to more local radio and TV stations.”

United States Senate

For Immediate Release

April 19, 2020

Contact:

Ben Marvin-Vanderryn (Cantwell)

(202) 695-9056

Jess Andrews (Kennedy)

Cantwell, Kennedy, Klobuchar, Boozman Send Bipartisan Letter Urging Support for Local Media Outlets Amidst COVID-19 Pandemic

Letter asks Senate Leadership to make more local newspapers, TV, and radio stations eligible for support under Paycheck Protection Program

Local newspapers have lost as much as 50 percent of ad revenue; some local broadcasters have lost up to 90 percent

WASHINGTON, D.C. – As the Senate considers additional measures to support small businesses around the country struggling with the impacts of the COVID-19 pandemic, U.S. Senators Maria Cantwell (D-WA), John Kennedy (R-LA), Amy Klobuchar (D-MN), and John Boozman (R-AR) sent a letter to Senate leadership urging them to ensure any future legislation make thousands of local newspapers, TV, and radio stations around the country eligible for small business assistance under the Paycheck Protection Program (PPP).

In the letter, the senators called for waiving the Small Business Administration’s (SBA) affiliation rule to allow local media outlets to access funding, pointing to the critical role these outlets play in keeping communities healthy and informed.

“Ensuring that local news outlets remain viable at this critical time is not only a matter of fairness, but is essential to public health,” the senators wrote. “Local newspapers, radio, and television stations provide important local content that keeps their communities informed. People rely on local newspapers and broadcasters to cover school and business closures, to widely communicate public health guidance, and to combat life-threatening misinformation.”

The COVID-19 pandemic has had devastating effects on local media outlets around the country. In the last few months, local newspapers have lost as much as 50 percent of advertising revenue, and the National Association of Broadcasters found that some local broadcasters have reported as much as a 90 percent loss in advertising revenues. Nationwide, advertising losses for local TV and radio broadcasters are estimated to reach at least $3 billion. The crisis has also resulted in an estimated 28,000 news workers being laid off nationwide.

These losses have only increased the financial difficulties many local media outlets have been feeling for years. From 2005 to 2018, newspaper advertising revenue fell from $49 billion to $14 billion, while subscription revenue remained flat. During the same time period, at least 1,800 newspapers went out of business and roughly 28,000 newsroom jobs were lost nationwide.

“Waiving SBA’s affiliation rules for local newspapers and broadcasters and ensuring that financial assistance flows to the local affiliate, not the parent company, would allow these small, local operations to be eligible for much-needed financial relief. Local newspapers and broadcasters have been hit hard by the COVID-19 crisis, are essential for maintaining a well-informed public, and deserve our help,” the senators concluded.

U.S. House Antitrust Subcommittee Chairman David N. Cicilline (D, RI-01) and Representative Jim Sensenbrenner (R, WI-05) are leading a similar effort to support local news outlets in the House of Representatives.

The full text of the letter can be found here and below.

April 18, 2020

Dear Leader McConnell and Leader Schumer:

We urge you to ensure that any future stimulus package makes more local newspapers and radio and television broadcasters eligible for small business assistance under the Paycheck Protection Program (PPP), created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Up to several thousand newspapers and hundreds of local radio and television stations across the country were cut out of existing programs by the U.S. Small Business Administration’s affiliation rule, which restricts assistance to companies owned or controlled by larger entities. Even though these news outlets may be owned by larger groups, they operate independently.

Ensuring that local news outlets remain viable at this critical time is not only a matter of fairness, but is essential to public health. Local newspapers, radio, and television stations provide important local content that keeps their communities informed. People rely on local newspapers and broadcasters to cover school and business closures, to widely communicate public health guidance, and to combat life-threatening misinformation. The CARES Act waived the affiliation rule for hotels and restaurants allowing them to benefit from small business assistance, and the same consideration should extend to local news outlets in light of their vital role in maintaining public health.

At the same time, local newspapers, radio, and television stations have lost major advertising revenue because of COVID-19’s devastating impact on the American economy. According to the News Media Alliance, newspapers have lost up to 50 percent of advertising revenue for the second quarter of the year. According to a nationwide survey conducted by the Interactive Advertising Bureau, traditional media, including local radio and television stations, will see a 43 percent decline in advertising revenue for March and April. The National Association of Broadcasters has found that some local broadcasters have even reported that up to 90 percent of their advertising revenue has been lost.

Waiving SBA’s affiliation rules for local newspapers and broadcasters and ensuring that financial assistance flows to the local affiliate, not the parent company, would allow these small, local operations to be eligible for much-needed financial relief.

Local newspapers and broadcasters have been hit hard by the COVID-19 crisis, are essential for maintaining a well-informed public, and deserve our help.

Sincerely,

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