Mark Thompson, the outgoing chief executive of the New York Times, said in an interview this week that rules aimed at addressing the news problems posed by Google and Facebook could have adverse consequences,media reported.
The news business model has been disrupted by tech giants such as Google and Facebook, which have absorbed online advertising revenue from publishers and distributed news articles without paying the news media.
Mr. Thompson has transformed The New York Times into a “subscription-first business model.” He said this week that if a news organization relies too much on digital advertising, it is a “straightforward competitor” and its main platform sells ads – and most news organizations without specialty brands and content will have a hard time winning the war because they are much bigger.
Outside the US, some regulators are asking tech giants to pay for news: France’s competition authorities have ordered Google to pay French publishers for its content, and Australian regulators have forced the company and Facebook to share advertising revenue with local media groups.
While Thompson thinks regulatory scrutiny of the platform is justified, he sees the risk of giving regulators and politicians more control over the media.
“My personal view is that the more the main platform can work bilaterally and voluntarily and support journalism at all levels, the better,” Thompson said. “
Thompson will step down in September, with Meredith Kopit Levien, the company’s chief operating officer, as the new chief executive. (Berg)