Why Journalism Made a Devil’s Bargain with Big Tech

Machines Like Us

Things do not look good for journalism right now. This year, Bell Media, VICE, and the CBC all announced significant layoffs. In the US, there were cuts at the Washington Post, the LA Times, Vox and NPR – to name just a few. A recent study from Northwestern University found that an average of two and a half American newspapers closed down every single week in 2023 (up from two a week the year before).

One of the central reasons for this is that the advertising model that has supported journalism for more than a century has collapsed. Simply put, Google and Meta have built a better advertising machine, and they’ve crippled journalism’s business model in the process.

It wasn’t always obvious this was going to happen. Fifteen or twenty years ago, a lot of publishers were actually making deals with social media companies, thinking they were going to lead to bigger audiences and more clicks.

But these turned out to be faustian bargains. The journalism industry took a nosedive, while Google and Meta became two of the most profitable companies in the world.

And now we might be doing it all over again with a new wave of tech companies like OpenAI. Over the past several years, OpenAI, operating in a kind of legal grey area, has trained its models on news content it hasn’t paid for. While some news outlets, like the New York Times, have chosen to sue OpenAI for copyright infringement, many publishers (including The Atlantic, the Financial Times, and NewsCorp) have elected to sign deals with OpenAI instead.

Julia Angwin has been worried about the thorny relationship between big tech and journalism for years. She’s written a book about MySpace, documented the rise of big tech, and won a Pulitzer for her tech reporting with the Wall Street Journal.

She was also one of the few people warning publishers the first time around that making deals with social media companies maybe wasn’t the best idea.

Now, she’s ringing the alarm again, this time as a New York Times contributing opinion writer and the CEO of a journalism startup called Proof News that is preoccupied with the question of how to get people reliable information in the age of AI.

Mentions:

“Stealing MySpace: The Battle to Control the Most Popular Website in America,” by Julia Angwin

“What They Know” WSJ series by Julia Angwin

“The Bad News About the News” by Robert G. Kaiser

“The Times Sues OpenAI and Microsoft Over A.I. Use of Copyrighted Work” by By Michael M. Grynbaum and Ryan Mac

“Seeking Reliable Election Information? Don’t Trust AI” by Julia Angwin, Alondra Nelson, Rina Palta

Further Reading:

“Dragnet Nation: A Quest for Privacy, Security, and Freedom in a World of Relentless Surveillance” by Julia Angwin

“A Letter From Our Founder” by Julia Angwin