Frederic Filloux in Monday Note:
Facebook killed the news media three times.
First, it killed the notion of brand. Year after year, the percentage of people able to recall where they got their news, is dwindling. “I read it on Facebook” now applies to half the population of the United States and Europe, and much more in countries where Facebook embodies the Internet.
Second, the notion of authorship has also vanished. Almost nobody has a clue who wrote what. Gradually, the two pillars of the trusting relationship between the media and its customers eroded, before crumbling altogether. Facebook has flattened the news for good.
Third, Facebook annihilated the business model of news by opening the way to a massive, ultra-cheap and ultra-targeted advertising system that brings next to nothing to the publishers. The reality of Facebook’s revenue stream is harsh: a European publisher told me last week that its RPM (Revenue per thousands) for videos on Facebook was about 30 cents of a Euro (that is 37 cents on a dollar). A pittance.
This is the damage done by “move fast and break things”.
On the plus side, one hopes the media will now stop the feeling of entitlement and adapt to the new world. It would be so much better if the media was responsible for its own distribution.