LOCATION CALLED THE VOICE OF OC
AND BUT FOR THE VOICE OF OC, UH,
THAT PROBABLY WOULDN'T HAVE BEEN
EXPOSED IN THE WAY IT HASN'T AND
NOW THREE PEOPLE ARE LIKELY TO
GO TO FEDERAL PRISON. THE FORMER
MAYOR, PRESIDENT CHAMBER OF
COMMERCE AND THE SECRETARY OF
THE DEMOCRATIC PARTY CITY,
CALIFORNIA. IT'S ALSO IMPORTANT
TO HOLD PEOPLE LIKE US
ACCOUNTABLE. UM AS WAS
ILLUSTRATED BY MY PREVIOUS
EXAMPLE. IT'S CRITICAL THAT WE
ALL BE HELD ACCOUNTABLE. SO, UM.
THE CHALLENGE THAT WE HAVE IN
THIS VERY COMPLICATED, VERY
COMPLICATED CONTEXT IN WHICH WE
FIND OURSELVES IS THE CHALLENGE
WHERE WE HAVE, UM, PLATFORMS
WHICH DISPLAYED THE NEWS. THANK
YOU VERY MUCH. UM AND WE HAVE
PUBLICATIONS THAT ARE IN NEED OF
SUPPORT. OTHERWISE, AS WE'VE
SEEN TREMENDOUS NUMBER OF
PUBLICATIONS HAVE GONE OUT OF
BUSINESS HERE JUST LAST FEW
YEARS. SO HOW DO HOW DO WE
RECONCILE THAT? YOU KNOW, OF
COURSE, THE PLATFORMS HAVE THE
ABILITY AS WELL AS THE
PUBLICATIONS TO SIMPLY SAY,
WE'RE NOT GOING TO ALLOW OUR
CONTENT TO BE USED ONLINE, WHICH
, WHICH IS A HOBSON'S CHOICE,
BECAUSE IF YOU'RE NOT ONLINE,
AND YOU'RE NOT GETTING THE
CLICKS, THEN IS VERY DIFFICULT
FOR YOU TO SURVIVE. WE REALIZED
THAT SO THAT'S WHAT THIS HEARING
IS ABOUT. HOW DO WE? HOW DO WE
MAKE SURE THAT WE PROVIDE ACCESS
TO CREDIBLE? INFORMATION SO THAT
THAT WE CAN CONTINUE TO FUNCTION
AS A DEMOCRACY. AT LEAST THAT'S
THAT'S WHAT I'M ABOUT HERE
TODAY. SO WE'RE GOING TO BRING
UP OUR FIRST PANEL. UM AND
SENATOR GLASER REMINDS ME THAT
I'M HOGGING THE MICROPHONE.
THANK YOU VERY MUCH. THANK YOU.
BY THE WAY, THANK YOU, SENATOR
GLAZER FOR BEING HERE. SENATOR
GLASER IS NOT ON THE JUDICIARY
COMMITTEE. BUT HE IS VERY HE'S
ALLEGEDLY. IS THAT WHAT YOU
SAID? LIKE TO BE WELL, WE'D LOVE
YOU TO HAVE LOVE TO HAVE YOUR
PRESIDENT JUDICIARY COMMITTEE.
UM BUT SENATOR GLASER IS, UM, A
CHAMPION IN THIS SPACE, SO LIKE
TO RECOGNIZE CENTER GLASER, ALSO
SENATOR ASHBEE TRAVELED FROM
NORTHERN FROM SACRAMENTO TO BE
WITH US TODAY. SHE IS A MEMBER
OF THE JUDICIARY COMMITTEE, A
LEADING MEMBER OF THE JUDICIARY
COMMITTEE. SO THANK YOU VERY
MUCH. AND SENATOR ALLEN IS HERE.
THERE'S BEEN A SENATOR ALLEN,
CITING EFFECT. I'VE SEEN HIM
MYSELF. UM, HERE, UH, UM,
SENATOR ALLEN CENTER HOME WAS
WAITING WAITING IN THE WINGS FOR
ME TO MENTION HIS NAME SO HE
COULD MAKE HIS ENTRANCE. VERY
WELL DONE. WE FORGOT THAT
HAPPENS. MUSIC WE USUALLY PLAY
WALK UP MUSIC WHEN CINDERELLA
ENTERS THE ROOM, BUT TODAY WE
DON'T HAVE ACCESS TO YOUR MUSIC.
SO THAT WAS IN THE CONTRACT THAT
WAS IN THE COTTON WITH PANELS.
UM WELL, I'M GONNA I'M GONNA
RECOGNIZE FIRST CENTER GLASER
THAN SENATOR ASHBY, THEN SENATOR
ALLEN. VERY OPENING COMMENTS.
THANK YOU. IS THIS MICROPHONE
WORKING? CAN YOU HEAR ME IN THE
BACK? OKAY THANK YOU. CHAIR
AMBERG FOR YOUR GRACIOUS
INVITATION FOR ME TO JOIN THIS
AUGUST. BODY HERE AND CERTAINLY
AT U C L. A LAW WHERE MY
DAUGHTER WENT TO SCHOOL
PARTICULARLY FUN TO BE HERE. UM.
COUPLE OF THINGS TO SAY AT THE
START. FIRST I SEE THE SAME
CONCERNS MANY HERE WILL EXPRESS
AND SOME HAVE DIRECTLY
EXPERIENCED IN THE HALLOWEEN OUT
OF CIVIC JOURNALISM. AND HOW THE
LACK OF CRITICAL OVERSIGHT IT
PROVIDES. CAN ERODE PUBLIC
CONFIDENCE IN OUR DEMOCRATIC
INSTITUTIONS. MY STAFF AND I
HAVE THREE YEARS OF WORK IN THIS
SPACE. WE'VE HAD MODERATE
SUCCESS, WHICH WE'LL HEAR ABOUT
FROM ONE OF THE WITNESSES. AND
ONE OF THE PANELS IN A FEW
MINUTES, BUT WE ALSO HAVE SOME
SCARS THAT I REALLY DIDN'T
EXPECT. SCARS NOT JUST FROM
NAYSAYERS WHO DON'T WANT OR
APPRECIATE THE WORK OF THE MEDIA
AND OUR DEMOCRACY. OR FROM SOME
WHO RIGHTFULLY WORRY ABOUT
PROTECTING THE INDEPENDENCE OF
CIVIC JOURNALISM. BUT ALSO FROM
OTHERS WHO SIMPLY WANT TO
PROTECT THEIR OWN NARROW AND
SELFISH. I'M HERE TO LEARN ABOUT
THE OPTIONS AND OPPORTUNITIES.
THAT WE IN GOVERNMENT, ALONG
WITH THE PRIVATE SECTOR, AND
MEDIA LEADERS CAN ADVANCE IN THE
YEARS AHEAD. WE NEED TO FIND THE
RIGHT BALANCE. I NEED TO FIND
THE RIGHT BALANCE IN THIS WORK.
THAT PROTECTS THE INTEGRITY AND
INDEPENDENCE OF THE FOURTH
ESTATE. THAT DOESN'T TURN A
BLIND EYE TO THE THREAT. TO OUR
DEMOCRACY THAT OUR FAILURE TO
ACT AND BRING WITH A NATIONAL
SOLUTION BE PREFERABLE. PERHAPS.
DEPENDING ON ITS PROVISIONS AND
PROSPECTS. BUT I'M NOT WILLING
TO HAVE CALIFORNIA WAIT. WE
SHOULD LEAD WITH THOUGHTFULNESS
AND URGENCY. AS THERE IS SO MUCH
AT STAKE. THANK YOU. CHAIR.
THANKS SO MUCH. CAMPUS WHAT A
BEAUTIFUL SOUTHERN CALIFORNIA
DAY YOU ORDERED UP FOR US CHAIR
AMBERG. IT IS. IT IS ALSO LOVELY
IN SACRAMENTO. BUT THE SUN IS
SHINING A LITTLE BRIGHTER AND
SOUTHERN CALIFORNIA TODAY AND
I'M HAPPY TO JOIN YOU FELT LIKE
TURNABOUT IS FAIR PLAY FLY UP TO
ME MOST OF THE TIME I COULD MAKE
ONE TRIP RIGHT DOWN HERE TO BE
WITH YOU FOR THIS IMPORTANT
HEARING. I DO WANT TO THANK
ASSEMBLYWOMAN WICKS FOR BEING
HERE. SHE'S REALLY TRIED TO
CHAMPION THIS TOPIC, AND IT'S
ALWAYS THE HALLMARK OF A GREAT
LEGISLATOR OR A GREAT LEADER
THAT SHE SHOWS UP IN THE ROOM TO
HEAR ABOUT WHAT PEOPLE HAVE TO
SAY AND TAKE THAT ALL IN AND
MAKE IT A PART OF WHAT SHE DOES
MOVING FORWARD SO SIMILAR PAGE
FOR JOINING US TODAY IS THAT
YOU'RE ALL INVITED TO MY
ANNIVERSARY PARTY. TODAY IS THE
ONE YEAR ANNIVERSARY OF ME EVEN
BEING A SENATOR. I WAS SWORN IN
ON THIS DAY LAST YEAR. SO THANKS
FOR BEING HERE WITH ME TODAY.
AND I'M HERE TO BE A GOOD
LISTENER MYSELF. AND I'M REALLY
GLAD TO SEE SO MANY PEOPLE ON ON
THAT SIDE OF THIS DIOCESE, WHO
ARE INTERESTED IN THE TOPIC TO
ITS CLEARLY AN ISSUE THAT WE
NEED TO WORK ON. YOU CAN'T JUST
SIT ON IT. WE HAVE TO DO
SOMETHING. SO I'M LOOKING
FORWARD TO HAVING A ROBUST
DIALOGUE TODAY ABOUT WHAT THAT
PATHWAY FORWARD MIGHT LOOK LIKE
AND ALWAYS, YOU KNOW, WITH WITH
THE SEA. INGREDIENT BEING WHAT'S
BEST FOR THE MOST PEOPLE IN THE
STATE OF CALIFORNIA. HOW DO WE?
HOW DO WE GET GOOD INFORMATION
FROM THE HANDS OF PEOPLE WHO
NEED IT NEED TO NEED TO HAVE
THAT INFORMATION IS GREAT WORK
BEING DONE? ALL THE SAME. I SEE
YOUR FAVORITE PERSON SCHOOL OVER
THERE. JOURNALISM LOTS OF GREAT
FOLKS HERE WHO ARE GOING TO BE
WONDERFUL PROBLEM SOLVERS AND
PARTNERS AS WE MOVE FORWARD, SO
THANK YOU ALL SO MUCH FOR BEING
HERE AND THANK YOU FOR INVITING
THE CHAIR ON BIRTH. WE ARE IN
CENTER ALAN'S DISTRICT RIGHT NOW
AND SO NEXT. I'D LIKE TO
RECOGNIZE SIT AROUND. WELL,
THANK YOU, MR CHAIR, AND IT'S
JUST SUCH A. IT'S A PLEASURE TO
BE BACK HERE AT LOS SCHOOL.
WHERE I'VE SPENT SOME TIME
TEACHING AND TO TALK ABOUT AN
INCREDIBLY IMPORTANT TOPIC. THAT
IS A REAL, UH, REAL IMPORTANCE
FOR OUR DEMOCRACY, AND I WANT TO
FIRST START BY JUST RECOGNIZING
THE LEADERSHIP THAT TWO OF MY
COLLEAGUES WHO ARE HERE HAVE
HAVE PLAYED IN THIS ON THIS
TOPIC. OBVIOUSLY SENATOR GLAZER
HAS DONE A LOT OF WORK ON TRYING
TO GET FUNDING FOR A SUPPORT
SYSTEM FOR SMALL PRESS, YOU KNOW
FOR LOCAL PRESS, INCLUDING A
FELLOWSHIP. THAT'S NOW FUNDING
GRADUATES. MOORLACH JOURNALISM
STUDENTS, I THINK IS A
RECOGNIZED RECOGNIZING HOW
DIFFICULT INCREDIBLY DIFFICULT
IT IS. WE'RE HAVING LUNCH
EARLIER. ONE OF THE MAJOR TOPICS
WAS THE CHALLENGES OF PUBLIC
INTEREST LAW AND GETTING YOUNG
PEOPLE TO BE ABLE TO AFFORD
CAREERS AND THAT SPACE, BUT
THERE'S EVEN MORE CHALLENGES IN
GETTING PEOPLE TO GET INVOLVED
IN JOURNALISM, GIVEN ALL THE
CHALLENGES THAT WE'VE BEEN
TALKING ABOUT TODAY. AND I ALSO
KNOW THAT MY COLLEAGUE IS
SELLING NUMBER WEEKS HAS BEEN
WORKING REALLY HARD ON. LOOKING
AT THE AT THE PRICING MODEL,
BASICALLY LOOKING AT THE
FINANCIAL MODEL WHEREBY A LOT OF
BIG TECH COMPANIES ARE BASICALLY
YOU KNOW, USING THE JOURNALISM,
THE PRODUCT OF NEWSPAPERS AND
JOURNALISTS. 2222. THEIR
PEOPLE'S FEEDS AND GET THEM
INTERESTED AND ENGAGED IN THE
QUESTION IS HOW HOW SHOULD THOSE
NEWSPAPERS HOW SHOULD
JOURNALISTS BE COMPENSATED FOR
THAT USE? UM YOU KNOW, THE THIS
WHOLE CHALLENGE OF THE FUTURE OF
JOURNALISM. I MEAN, YOU KNOW,
AND I REALLY DO COMMEND FOLKS IF
THEY HADN'T HAD A CHANCE TO READ
THIS BACKGROUNDER THAT WAS
PREPARED BY THE JUDICIARY STAFF.
BUT THE BACKGROUND ARE OPENS
WITH A QUOTE FROM JUSTICE. BLACK
HUGO BLACK. WHO TALKS ABOUT THE
ESSENTIAL NOTICE THE IMPORTANCE
OF THE PRESS THE PRESS TO SERVE
THE GOVERNOR, RIGHT? THAT'S SORT
OF THE GOVERNMENT, NOT THE
GOVERNORS, THE GOVERNMENT'S
POWER TO CENSOR THE PRESS WAS
ABOLISHED AT THE PRESS WOULD
REMAIN FOREVER FREE TO CENTER,
THE GOVERNMENT BUT OF COURSE,
THIS DEPENDS ON A PRESS THAT'S
ABLE TO RECEIVE FINANCING TO BE
ROBUST TO BE ENGAGED TO BE A
PART OF OUR ECONOMY. AND WE KNOW
HOW MUCH THAT IS UNDER ATTACK
AND HOW CHALLENGING THAT IS FOR
THE FOR THE PRESS TO STAY IN
BUSINESS, AND OF COURSE, WE KNOW
WE'VE GOT MAJOR ISSUES WITH
REGARDS TO THE RISE OF THE
INTERNET AND THE EXTENT TO WHICH
THE PRESS IS ABLE TO STAY
COMPETITIVE AND IT'S OLD. IT'S
TRADITIONAL FORM MANY PEOPLE
THAT ARE NO LONGER YOU KNOW,
PAYING FOR JOURNALISM, YOU KNOW,
PAY WALLS APPARENTLY HAVE DONE
NOTHING BUT MAKE IT SO THAT A
SMALLER SLIVER OF THE POPULATION
IS ACTUALLY GETTING CREDIBLE
NEWS ACCESS. AND EVERYBODY ELSE
IS NOW GETTING THEIR NEWS
INCREASINGLY FROM TIKTOK FROM
ALGORITHMS THAT END UP PUSHING
PEOPLE DOWN RABBIT HOLES AND END
UP CONFIRMING BIAS, AS OPPOSED
TO CHALLENGING BIAS, WHICH IS
EXACTLY WHICH IS WHAT THE FREE
PRESS WAS SUPPOSED TO BE ALL
ABOUT, AND I'M DEEPLY CONCERNED
ABOUT IT. I'VE I'VE HAD HAVE
BEEN DOING SOME READING, AND
SOME HAVE BEEN A CONFERENCE ON
THIS NOT TOO LONG AGO, AND SOME
OF THE DATA WAS JUST SHOCKING IN
TERMS OF THE EXTENT TO WHICH OUR
FELLOW AMERICANS ARE GETTING
NEWS FROM SUCH NOT FROM FROM
UNCREDIBLE SOURCES AND THE
EXTENT TO WHICH IS ACTUALLY
REALLY STARTING TO INFORM THE
POLITICAL PROCESS IN WAYS THAT
ARE VERY DANGEROUS, AND SO I'M
REALLY LOOKING FORWARD TO
DISCUSSION AND I REALLY DO THINK
AND APPLAUD OUR WONDERFUL
JUDICIARY COMMITTEE NOT ONLY FOR
TAKING ON THIS TOPIC, WHICH IS
GOING TO BE A BIG AREA OF
DISCUSSION IN THE COMING
LEGISLATIVE SESSION, BUT ALSO DO
YOU WANT TO WELCOME YOU AND
THANK YOU. FOR COMING HERE TO U
C L A THIS WONDERFUL CAMPUS,
WHICH IS A CENTER FOR ROBUST
DIALOGUE, DISCUSSION, FREE
EXPRESSION AND ACADEMIC
DISCOURSE, AND IT'S WONDERFUL TO
BRING THE SENATE HERE HOME TO U.
C L. A THANK YOU, SENATOR ALLEN.
AND I THINK ALL OF YOU IN THE
ROOM HERE HAVE AN AGENDA. FOR
THOSE OF YOU WHO ARE WATCHING.
WE HAVE A FULL HOUSE. LET ME
JUST GO OVER HOW WE'RE GOING TO
PROCEED TODAY TO ACCOMPLISH THE
GOALS THAT HAVE BEEN EXPRESSED
HERE. WE'RE FIRST GOING AHEAD
AND GETTING OVERVIEW OF THE
ISSUES FACING DIGITAL NEWS TODAY
FROM THE EXECUTIVE DIRECTOR OF
THE INSTITUTE FOR TECHNOLOGY LAW
AND POLICY. HERE AT U C L A WILL
THEN GOING TO TURN TO THE
INTERPLAY BETWEEN NEWS AND
TECHNOLOGY. OUR SECOND PANEL
FEATURES SPEAKERS WHO DISCUSSED
THE NUTS AND BOLTS OF HOW ONLINE
PLATFORMS SUCH AS SEARCH ENGINES
AND SOCIAL MEDIA HOW THEY AFFECT
THE REPORTING THAT THE
CONSUMPTION AND THE ECONOMICS OF
JOURNALISM AND THEN THIRD WE'LL
HEAR FROM ACTUAL REPORTERS ON
THE GROUND ARE THIRD PANEL
CONSISTS OF SEVERAL CALIFORNIA
PUBLISHERS AND PUBLISHER
REPRESENTATIVES WHO TELL US
ABOUT THEIR EXPERIENCES AS WELL
AS THE PROGRAM DIRECTOR FOR THE
CALIFORNIA LOCAL NEWS FELLOWSHIP
PROGRAM, THE LEGISLATIVE
INITIATIVE TO HELP PLACE
JOURNALISTS WITH LOCAL NEWS
PUBLISHERS. I THINK YOU THANK
YOU, SENATOR GLASER, UM OUR
FINAL PANEL TAKES US BEYOND OUR
BORDERS TO TAKE A LOOK AT THE
INTERNATIONAL EFFORTS TO BALANCE
THE INTERESTS OF NEWS AND
DIGITAL PLATFORMS. SO HERE FROM
SEVERAL EXPERTS WHO WILL OFFER
PERSPECTIVES ON LEGISLATIVE AND
REGULATORY MEASURES TAKEN IN
CANADA, AUSTRALIA AND AROUND THE
WORLD, THOSE WHO FOLLOWING THIS
CANADA THERE'S LOTS OF LATE
BREAKING NEWS IN TERMS OF WHAT
CANADA IS DOING. ON THIS FRONT
FOR EACH PANEL WILL PERSONAL OUT
ALL THE PANELISTS PRESENT BEFORE
OPENING UP FOR QUESTIONS AND
COMMENTS FROM THE SENATORS HERE
TODAY AND THEN, AFTER OUR FINAL
PANEL WILL OPEN UP FOR PUBLIC
COMMENT, AS I MENTIONED, UM,
PUBLIC COMMENT, EACH PERSON WILL
BE AFFORDED ONE MINUTE. ALL
RIGHT. UM LET'S HEAR FROM OUR
FIRST PRESENTER MICHAEL CARL
NICOLAS. NICHOLAS, IF YOU WOULD
APPROACH THAT WOULD BE GREAT.
GO AHEAD. UM, THANKS VERY MUCH.
I WOULD LIKE TO START BY
OFFERING MY SINCERE THANKS TO
THE COMMITTEE FOR THEIR
INVITATION TO SPEAK. I AM
DELIGHTED TO BE ABLE TO ENGAGE
WITH YOU ALL ON THIS INCREDIBLY
IMPORTANT ISSUE. AND
PARTICULARLY GOT THIS
CONVERSATION TAKING PLACE AT U C
L A. WE ARE DEEPLY HONORED TO
HAVE YOU ALL WITH US. UM JUST AS
A BIT OF CONTEXT. THE INSTITUTE
OF TECHNOLOGY LAW AND POLICY WAS
ESTABLISHED IN 2020 AS A
COLLABORATION BETWEEN THE UCLA
SCHOOL OF ON THE SAME WAY SCHOOL
OF ENGINEERING. AND AS THERE IS
INAUGURAL EXECUTIVE DIRECTOR
ESTABLISHED PERMISSION TO FOSTER
RESEARCH AND ANALYSIS TO ENSURE
NEW TECHNOLOGIES ARE DEVELOPED,
IMPLEMENTED AND REGULATED IN
WAYS THAT ARE SOCIALLY
BENEFICIAL, EQUITABLE AND
ACCOUNTABLE. MUCH OF OUR
RESEARCH ON PLATFORMS IN THE
PRESS THAT WILL BE TALKING ABOUT
TODAY WAS DEVELOPED AS PART OF
OUR INFORMATION POLICY LAB, A
NEW EXPERIENTIAL CLASS TWO UNDER
LAW STUDENTS INTO THE TECH
POLICY SPACE, AND WE HAVE OUR
FULL RESEARCH FINDINGS IN THIS
DOCUMENT, AND I'D LIKE TO TAKE A
MOMENT TO SPECIFICALLY THANK OUR
TEAM OF RESEARCH ASSISTANTS WHO
DID INCREDIBLE WORK AND
FINALIZING THIS DOCUMENT. UNLESS
YEARS OR NOT TO ACCEPT AGARWAL
ISHIKA MANLY, MARIA MUNOZ ROJAS,
NATHAN SEAGAL AND NICHOLAS
WILSON. UM. I WANT TO BEGIN
TODAY WITH THREE PREMISES WHICH
I THINK SHOULD BE RELATIVELY ON
CONTROVERSIAL TO MOST. AND
HOPEFULLY ALL OF OUR ATTENDEES,
UM THE FIRST IS THAT NEWS MEDIA
IS IN CRISIS. THIS HAS BEEN
EXTENSIVELY DOCUMENTED, UM AND
I'M SURE YOU'LL HEAR THE DETAILS
FROM FROM OTHER WITNESSES.
RECENT REPORT FROM THE POINTER
INSTITUTE FOUND 130 NEWSPAPERS
CLOSED OVER THE COURSE OF 2023
AND THAT SINCE 2005 THE US HAS
LOST NEARLY 2900 NEWSPAPERS AND
43,000 JOURNALISTS, JOBS. WHILE
SOME OF THIS CAN BE REPLACED
THROUGH NEW DIGITAL NEWS SITES
OR OTHER STARTUPS, THESE TEND TO
BE CLUSTERED AND WEALTHIER AND
URBAN AREAS, LEADING TO A RAPID
EXPANSION OF NEWS DESERTS ACROSS
THE COUNTRY. MY SECOND PREMISE
IS THAT CRISIS FOR NEWS MEDIA IS
A CRISIS FOR DEMOCRACY. WHICH
DEPENDS ON AN INFORMED AND
ENGAGED ELECTORATE. FACT BASED
JOURNALISM IS ESSENTIAL TO
PUBLIC HEALTH DEVELOPMENT AND
ACCOUNTABLE GOVERNANCE AND THE
INCREASING DOMINANCE OF ONLINE
PLATFORMS OVER OUR PUBLIC SPHERE
. UM IS A GLOBAL PHENOMENON
WHICH HAS LED TO AN UNEASY
RELATIONSHIP BETWEEN NEWS
ORGANIZATIONS AND LARGE TECH
COMPANIES. WHILE THE PLATFORMS
HAVE GENERATED NEW OPPORTUNITIES
TO CONNECT JOURNALISTS WITH
AUDIENCES, EVADE CENSORSHIP AND
ENGAGE IN INFLUENTIAL CROSS
BORDER COLLABORATIONS. THEY HAVE
ALSO FORCED JOURNALISTS TO
CONTEND WITH SHIFTING
ALGORITHMIC PRIORITIES WORKED
INCENTIVE STRUCTURES AND THE
ATTENTION ECONOMY AND AN
INCREASINGLY COMPLEX AREA OF
TECHNOLOGY POLICIES THAT SHAPE
THE ENVIRONMENT IN WHICH THEY
WORK AND THE BUSINESS MODEL FOR
SUSTAINABILITY. PERHAPS MOST
URGENTLY. THE PLATFORM IZATION
OF JOURNALISM HAS CONTRIBUTED TO
A CRISIS IN FUNDING IN WHICH
QUALITY JOURNALISM PARTICULARLY
LOCALLY FOCUSED AND
INVESTIGATIVE JOURNALISM, HAS
STRUGGLED TO STRUGGLE TO FIGURE
OUT HOW TO NAVIGATE
SUSTAINABILITY IN THE
INFORMATION AGE. IT IS NOT A
COINCIDENCE THAT THE DECLINE OF
TRUSTED LOCAL NEWS IS HAPPENING
AT THE SAME TIME AS WE ARE
FACING UNPRECEDENTED CHALLENGES
FROM MISINFORMATION OF ALL
KINDS, AS WELL AS INCREASING
POLARIZATION AND EXTREMISM.
TRUSTED NEWS ORGANIZATIONS ARE
VITAL FOR ESTABLISHING A
COLLECTIVE PUBLIC NARRATIVE AND
AS WE'VE SEEN A SHARED
UNDERSTANDING OF REALITY, SO THE
CHALLENGE IS TO NEWS MEDIA
SUSTAINABILITY ARE NOT ONLY MADE
MORE DANGEROUS BY THE
ACCOMPANYING THREATS TO AMERICAN
DEMOCRACY, BUT INDEED ARE
SIGNIFICANT COMPONENT IN FUELING
THESE THREATS. MY THIRD PREMISES
THAT. THE CURRENT CRISIS FACING
THE NEWS INDUSTRY IS DRIVEN, AT
LEAST IN PART. BY CHANGES TO OUR
INFORMATION ECONOMY AND THE
INCREASING DOMINANCE OF ONLINE
INTERMEDIARIES IN BOTH THE
DIGITAL ADVERTISING MARKET AND
THE BROADER ATTENTION ECONOMY.
THIS IS NOT TO SUGGEST THE
PLATFORM SO THE ONLY CAUSE OF
THE CRISIS SOME OBSERVERS HAVE
POINTED TO, FOR EXAMPLE, MEDIA
INDUSTRY CONSOLIDATION IS A
PARALLEL FORCE. THE PROPORTIONAL
ROLE OF THE PLATFORMS IS A
MATTER OF LEGITIMATE DEBATE, AND
I WOULD NOT SUGGEST THAT THE
SUSTAINABILITY CHALLENGES ARE
THE RESULTS OF ANY DELIBERATE OR
DIRECT ASSAULT ON LOCAL NEWS BY
THE PLATFORMS, BUT THE CHANGES
TO OUR INFORMATION ENVIRONMENT
ARE LARGELY DRIVEN BY THESE
INTERMEDIARIES, AND THESE
CHANGES HAVE CREATED BOTH
WINNERS AND LOSERS, WITH NEWS
MEDIA ORGANIZATIONS OFTEN
FALLING INTO THE LATTER CAMP. SO
IF WE AGREE ON THOSE THREE
PREMISES THEN THE QUESTION
BECOMES. WHAT IF ANYTHING, IS
THE APPROPRIATE LEGISLATIVE
RESPONSE TO WHAT IS THE PRESSING
CHALLENGE TO AMERICAN DEMOCRACY?
WELL, I'M NOT GOING TO SPEAK TO
ANY SPECIFIC LEGISLATIVE
PROPOSAL HERE. I'D LIKE TO
SUGGEST A FEW PRINCIPLES THAT
SHOULD GUIDE HOW WE UNDERSTAND
POTENTIAL RESPONSES. IN ADDITION
TO THE CRITICAL NEED TO SUPPORT
NEWS MEDIA SUSTAINABILITY. FIRST
. I THINK IT IS IMPORTANT TO
CAREFULLY CONSIDER THE INCENTIVE
STRUCTURE THAT IS BEING CREATED.
FOR BOTH INTERMEDIARIES AND FOR
NEWS ORGANIZATIONS AND HOW
REGULATORY INTERVENTIONS ARE
LIKELY TO IMPACT THAT AMONG THE
KEY IMPACTS OF OUR TRANSITION TO
A DIGITAL INFORMATION SOCIETY IS
AN EROSION OF THE POWER AND
DOMINANCE OF TRADITIONAL HUBS OF
INFORMATION AND GOVERNANCE. THIS
IS THE NATURAL RESULT OF GIVING
EVERYONE THE TOOLS OF MASS
COMMUNICATION. THAT DISCOURSE IS
INEVITABLY LESS CENTRALIZED. AS
THESE TRADITIONAL INFORMATION
HUBS, INCLUDING LEGACY NEWS
ORGANIZATIONS HAVE LOST
INFLUENCE. NEW PLAYERS HAVE
EMERGED. AND AMONG THE MOST
IMPORTANT OF THESE ARE THE
ONLINE INTERMEDIARIES. THE
EMERGENCE OF THESE
INTERMEDIARIES IN NO WAY
SUPPLANTS THE CRITICAL ROLE OF
HIGH QUALITY INVESTIGATIVE
JOURNALISM TO A HEALTHY
DEMOCRACY. HOWEVER THESE
INTERMEDIARIES ARE NOT GOING
ANYWHERE. THEY ARE FIRMLY
ENTRENCHED WITHIN THE NEW
INFORMATION ECOSYSTEM. AND
DECISIONS THEY MAKE ON HOW
INFORMATION IS MANAGED AND
ATTENTION IS CHANNELED ARE
INCREDIBLY IMPORTANT AND
INFLUENTIAL. GIRL ALSO PRIVATE
SECTOR PLAYERS. AND ARE DRIVEN
BY THE PROFIT MOTIVE LIKE ANY
OTHER COMPANY. SO IT IS
IMPORTANT TO BE MINDFUL OF HOW
RATIONAL PROFIT DRIVEN COMPANY
MIGHT BE EXPECTED TO REACT. TO
THE KINDS OF INCENTIVES THAT ARE
BEING DEVELOPED AND HOW TO
STRUCTURE LEGISLATIVE
INTERVENTIONS TO ENSURE THAT THE
RESULTS ARE NET POSITIVE FOR
NEWS. EDUCATION AND INFORMATION,
INTEGRITY, WHETHER THAT IS
THROUGH, SEEKING TO MITIGATE OR
ELIMINATE NEGATIVE INCENTIVES
THAT PLATFORMS MIGHT HAVE TO,
FOR EXAMPLE, INFORMATION AWAY
FROM QUALITY NEWS MEDIA OR TO
CREATE ADDITIONAL INCENTIVES IN
FAVOR OF QUALITY IN THE
INFORMATION DISCOURSE. THE
BROADER IMPACTS NEED TO BE
CONSIDERED. LIKEWISE, IT IS
IMPORTANT TO CAREFULLY CONSIDER
THE INCENTIVE STRUCTURE AND
INTERVENTION MADE POLICE ON NEWS
MEDIA ORGANIZATIONS. WHO WE RELY
ON TO HOLD OUR POWERFUL
INSTITUTIONS ACCOUNTABLE,
INCLUDING BIG TECH COMPANIES.
SPEAKERS THAT WE'VE HOSTED HERE
AT U. C L. A HAVE NOTED THAT
IT'S SOMEWHAT IN CONGRESS WITH
THAT FUNCTION TO EXPECT
JOURNALISTS TO NEGOTIATE FOR
REVENUES WITH ONLINE PLATFORMS.
AND THEN WHAT'S THE NEGOTIATION
IS COMPLETED TO ACT AS AN
AGGRESSIVE OVERSIGHT MECHANISM
OVER THESE VERY COMPANIES. FROM
THAT PERSPECTIVE, CLEAR AND
LEGISLATIVELY MANDATED FORMULA
FOR COMPENSATION SEEMS MORE
APPEALING THAN A NEGOTIATION
BASED MODEL. OF COURSE, IF THE
FEE STRUCTURE IS SET OUT, AS A
MATTER OF LAW, IT BECOMES
EXTREMELY IMPORTANT TO ARRIVE AT
A FAIR VALUE VALUATION. SOME
JOURNALISTS HAVE ALSO RAISED
CONCERNS THAT SUBSIDY PROGRAMS
COULD FURTHER ERODE PUBLIC
CONFIDENCE IN THEIR REPORTING.
BY CREATING A PERCEPTION THAT
THEY ARE BEHOLDEN TO THE
GOVERNMENT OR BIG TECH
PAYMASTERS. TRANSPARENCY IS
LIKELY THE BEST COUNTER TO THESE
CONCERNS. BUT THESE ARE ALL
TRADE OFFS THAT NEED TO BE
CONSIDERED AGAINST THE
FOUNDATION. IMPORTANCE OF THE
PRESS TO A FUNCTIONING DEMOCRACY
AND THE SUSTAINABILITY CRISIS
FACING NEWSROOMS AROUND THE
WORLD. THIRD. I THINK THAT IT'S
CRUCIAL TO LEARN FROM ELSEWHERE.
I THINK THAT'S FANTASTIC THAT
TODAY WE'RE GOING TO BE HEARING
FOLKS WHO CAN SHARE STORIES FROM
CANADA, POTENTIALLY FROM
AUSTRALIA FROM THE EU FROM OTHER
JURISDICTIONS THAT ARE TACKLING
THIS. BUT CONTEXT IS ALSO
IMPORTANT, INCLUDING WHEN ONE
CONSIDERS THE TOTALITY OF THE
LEGISLATIVE FRAME FRAMEWORK
SURROUNDING A PARTICULAR
INTERVENTION. I WOULD ALSO ADD
THAT THERE IS LIKELY A CERTAIN
CALIFORNIA EXCEPTIONALISM PLAY,
GIVEN THE STATE'S ROLE AS THE
CRADLE OF THE DIGITAL
REVOLUTION. UH, AND THE HOME TO
MANY OF THESE COMPANIES. THE
PEOPLE IN THIS ROOM POTENTIALLY
HAVE A BIGGER STICK TO WELL TO
COMPEL COMPLIANCE, THEN SAY EVEN
THE CANADIAN OR AUSTRALIAN
GOVERNMENTS. AND FINALLY I THINK
THAT IT'S IMPORTANT FOR ANY
LEGISLATIVE PROCESS HERE TO BE
THE START OF A CONVERSATION, AS
OPPOSED TO AN EXPECTATION THAT
CHANNEL CHALLENGES FACING
JOURNALISM OR THE INFORMATION,
ECONOMY OR DEMOCRACY ARE GOING
TO BE RESOLVED IN ONE FELL
SWOOP. PROGRESSIVE ITERATION IS
THE FORMULA FOR STRONG POLICY,
AND I THINK THAT THAT HAS BEEN
ONE OF THE CRITICAL LESSONS FROM
CALIFORNIA'S IMPORTANT MOVES TO
REGULATE PRIVACY. AND THAT THERE
IS AN IMPORTANT ROLE NOT ONLY
FOR CALIFORNIA LEADERSHIP IN
THIS SPACE, BUT ALSO FOR
CALIFORNIA TO BE AN IMPORTANT
HUB FOR DISCUSSION ON STRUCTURAL
IMPROVEMENTS TO REMEDY THESE
CHALLENGES GOING FORWARD, AND I
LOOK FORWARD TO OPPORTUNITIES
FOR MY INSTITUTE, UH, TO BE A
PARTNER IN THE ONGOING DIALOGUE.
THANK YOU AGAIN FOR THE
OPPORTUNITY TO BE HERE AND I
VERY MUCH LOOK FORWARD TO
TODAY'S DISCUSSIONS. DID YOU
WANT THIS PASSED OUT? YES,
PLEASE.
YOU KNOW HOW YOU SEE IT? SO HOW?
HOW DO YOU SEE A I PLAYING A
ROLE IN THIS DEVELOPMENT? YOU
KNOW, YOU KNOW ALL THESE ISSUES.
I MEAN, YOU CAN YOU CAN YOU GIVE
US A KIND OF A 30,000 FT. SURE
VIEW OF, UM A. I IS GOING TO
HAVE AN INTERESTING IMPACT BOTH
ON JOURNALISM AND ON INFORMATION
, INTEGRITY TO DEAL WITH
JOURNALISM FIRST. I MEAN, YOU
KNOW THE PROFESSION IS GOING TO
NEED TO ADAPT TO THE GROWTH OF
LARGE LANGUAGE MODELS IN THE WAY
THAT A LOT OF PARALLEL
PROFESSIONS ARE GOING TO. UM
THESE ARE TOOLS THAT HAVE
ENORMOUS AMOUNT OF POTENTIAL IN
ORDER TO BE A FORCE MULTIPLIER.
FOR JOURNALISTS IN ORDER TO
DEVELOP RESEARCH TO DEVELOP
FIRST DRAFTS, UM OF STORIES, UM,
TO DO BASIC KIND OF RESEARCH AND
ANALYSIS THAT WOULD POTENTIALLY
TAKE A LOT OF MAN HOURS. UM AT
THE MOMENT. OBVIOUSLY THERE
NEEDS TO BE A SIGNIFICANT AMOUNT
OF OVERSIGHT OF THAT WORK TO
MAKE SURE THAT THEY'RE NOT JUST
PUMPING OUT GARBAGE. BUT IF YOU
ASSUME THAT, UM, CHALLENGES
RELATED TO HALLUCINATIONS ARE
GOING TO BE RESOLVED SOME POINT,
THEN IT'S CLEAR THAT THESE TOOLS
ARE GOING TO HAVE A
TRANSFORMATIVE EFFECT ON THE
PROFESSION NOT ONLY IN TERMS OF
HOW JOURNALISM IS PRACTICED. BUT
ALSO IN TERMS OF THE WAY THAT
PEOPLE LEARN HOW TO BE
JOURNALISTS, BECAUSE IF THOSE
ENTRY LEVEL SORT OF RESEARCH AND
ANALYSIS POSITIONS ARE NOW BEING
DONE BY MACHINES, IT RAISES
INTERESTING QUESTIONS ABOUT WHAT
ENTRY TO THE PROFESSION IS GOING
TO LOOK LIKE PARALLEL IN A LOT
OF WAYS TO THE QUESTIONS THAT
WE'RE ASKING ABOUT, UM, LAW UM,
IN TERMS OF THEIR OH, YEAH. THE
TECHNOLOGY IS SO MUCH BETTER, I
GUESS RIGHT NOW. IT'S SO CLEARLY
NOT A DECENT RESEARCH TOOL RIGHT
FOR THE FOR THE CALIBER OF
JOURNALISM THAT WE EXPECT OUT
OF. OUR NEWSPAPERS, RIGHT? UM
WELL, I MEAN, SO YOU KNOW, YES.
SO THERE'S AN ASSUMPTION THAT
IT'S GONNA GET BETTER OVER TIME,
AND IT CHALLENGES AROUND TAKE
HALLUCINATIONS ARE GOING TO BE
ABOUT RESOLVED BUT MITIGATED,
BUT EVEN IF IT'S A
HALLUCINATION, BUT PERSPECTIVE
AND DEPTH OF UNDERSTANDING. BUT
CERTAINLY HALLUCINATIONS, RIGHT?
I THINK IT DEPENDS ON YOUR FRAME
WORK AND WHAT YOU'RE EXPECTING
FROM THESE TOOLS, RIGHT? I DON'T
THINK THAT YOU KNOW, CERTAINLY
NOT ANY TIME SOON. WE'RE GOING
TO MOVE TO A POINT WHERE YOU
KNOW YOU JUST HAD A STAFF OF AI
JOURNALISTS BUT AS A RESEARCH
TOOL THAT, FOR EXAMPLE, IS
DEVELOPING A FIRST DRAFT OF A
PARTICULAR STORY OR REWRITING A
STORY IN ORDER TO IMPACT
PARTICULAR TONE THAT YOU WANT TO
SEE, CHANGED OR JUST GRABBING
RESEARCH INSTEAD OF FORCING
INDIVIDUAL REPORTERS TO BE
DIGGING THROUGH ARCHIVES, I MEAN
THAT IN ITSELF IS POTENTIALLY A
FORCE MULTIPLIER. FOR INDIVIDUAL
STAFF WITHIN A PARTICULAR
NEWSPAPER. MM HMM. WELL, IF WE
ENSURE THAT THEY'RE ACTUALLY
DRAWING UPON A REALLY DIVERSE
RANGE OF SOURCES, AND THAT'S A
DIFFERENT QUESTION. RIGHT SO THE
QUESTION, SO THERE'S A QUESTION
OF CAN CAN THEY CAN THESE
MACHINES DO THE JOB? AND THEN
THERE IS A DIFFERENT QUESTION OF
HOW DO WE DO WE WANT MACHINES TO
BE DOING THESE JOBS? ARE THERE
ADDITIONAL CHALLENGES THAT COME
FROM THAT? UM AND IS THE
RESPONSE THAT WE TRY TO FIND
WAYS TO MITIGATE THOSE
CHALLENGES OR DO WE DECIDE? THAT
YOU KNOW, THERE ARE CERTAIN
TYPES OF WORK THAT WE JUST
PREFER THAT HUMANS ARE DOING AS
OPPOSED TO, AS OPPOSED TO BEING
AUTOMATED AWAY, RIGHT? AND WHAT
THAT VALUE ADDED, IS ULTIMATELY
FROM. I THINK, GETTING TO YOUR
EARLIER COMMENTS ABOUT THE JUST
ALL THESE NEWSPAPERS THAT HAVE
SHUT DOWN YOU KNOW ONE THING I
WAS HEARING A PIECE ABOUT THIS
NOT TOO LONG AGO NOT ONLY IS
THERE, YOU KNOW ENORMOUS IMPACT
ON THE COMMUNITY. SO MANY
DIFFERENT WAYS. I THINK WE CAN
ALL WE CAN ALL KNOW THERE'S A
FINANCIAL IMPACT, APPARENTLY.
COMMUNITIES THAT DON'T HAVE A
LOCAL NEWSPAPER PAY A PREMIUM.
IN THEIR BORROWING ON THE BOND
MARKET, YOU LITERALLY PAY A
HIGHER PERCENTAGE. UH OF
INTEREST ON YOUR MUNICIPAL OR
SCHOOL BONDS. IF THERE'S NOT A
LOCAL NEWSPAPER IN PLACE BECAUSE
THE MARKET RECOGNIZES THAT THE
LACK OF A LOCAL NEWSPAPER MEANS
THAT YOU'RE MORE THERE'S MORE
LIKELY TO BE SHENANIGANS LESS
LIKELY PEOPLE. PEOPLE ARE NOT
CHECKING THEIR WORK QUITE AS
CAREFULLY. THERE'S LESS OF A
SENSE OF OVERSIGHT THE BOARD
MEMBERS ON OR THE COUNCIL
MEMBERS KNOW THAT THERE'S NO ONE
LISTENING TO THEM OR PAYING
ATTENTION TO WHAT'S HAPPENING.
AND IT LITERALLY. THERE'S A
THERE'S A DIRECT COST TO
RATEPAYERS. TAXPAYERS CITIZENS,
UH, WHEN THERE'S WHEN THEY WHEN
THEY LOST THE LOCAL NEWSPAPER
THAT HAS ACTUALLY BUILT INTO THE
BORROWING COSTS FOR PUBLIC WORKS
PROJECTS AND SCHOOL CONSTRUCTION
AND ALL THE REST, WHICH IS, I
THINK KIND OF EXTRAORDINARY BUT
ACTUALLY MAKES SO MUCH SENSE. IF
YOU THINK ABOUT IT, AND I UM YOU
KNOW, I YEAH, TO BE CLEAR. I'M
IN NO WAY TRYING TO SUGGEST THAT
A I IS THE SOLUTION TO THESE
PROBLEMS. THAT'S ABSOLUTELY NOT
THE NARRATIVE THAT I'M THAT I'M
TRYING TO DRIVE. ALL THAT I WAS
INTENDING TO SAY IS, UM, A I IS
GOING TO OPEN X 5 TO 10 YEARS
TRANSFORMED THE WAY THE WORKFLOW
WORKS WITHIN THESE PROFESSIONS.
THE SAME AS IT DOES IN LIFE.
THINK, SAME AS IT DOESN'T IN ANY
NUMBER OF PROFESSIONS. UM, WHERE
GENERATING WRITTEN WORKS IS A
SIGNIFICANT PART OF THE JOB.
OKAY LAST QUESTION YOU, YOU JUST
PASSED. I HAVEN'T HAD A CHANCE
TO REVIEW THIS BECAUSE YOU JUST
GAVE IT TO ME BUT SUSTAINING
JOURNALISM SUSTAINING DEMOCRACY
OF POLICY GUIDE ON PLATFORMS IN
THE PRESS. WERE LEGISLATORS.
IT'S OUR JOB TO YOU KNOW, COME
UP WITH NEW POLICY VOTE FOR NEW
POLICIES. WHAT WOULD BE
SOMETHING THAT YOU WOULD? YOU
WOULD REALLY ENCOURAGE US TO
CONSIDER IT FOR NEW LEGISLATION
IN THIS SPACE GIVEN ALL OF YOUR
RESEARCH? YEAH SO THE
PUBLICATION LOOKS AT FOUR
DIFFERENT STRUCTURES OF
LEGISLATIVE INTERVENTION EITHER
DESIGNED AROUND ANTITRUST,
ANTITRUST BASED INTERVENTIONS.
INTELLECTUAL PROPERTY BASED
INTERVENTIONS, SUBSIDY BASED
INTERVENTIONS. UM AND
TRANSPARENCY BASED INTERVENTIONS
TO EXAMINE THEIR RELATIVE
BENEFITS AND CHALLENGES AND
IMPLEMENTATION. UM ONE OF THE
ONE OF THE KEY TAKEAWAYS IS THAT
IT'S IMPORTANT TO, UM, THINK
CAREFULLY ABOUT HOW THESE
DIFFERENT MODELS OF LEGISLATIVE
INTERVENTION INTERACT WITH ONE
ANOTHER, AND THAT OFTENTIMES
THERE CAN BE A REQUIREMENT FOR
MULTIPLE AVENUES TO MOVE FORWARD
ON A SIMILAR TRACK. UM IN ORDER
FOR THEM TO BE EFFECTIVE. SO I
MENTIONED IN MY REMARKS THAT
TRANSPARENCY IS EXTREMELY
IMPORTANT IN ORDER TO COMBAT
PERCEPTIONS OF CAPTURE AS A
RESULT OF THIS LEGISLATION HAS
BEEN A WEAKNESS OF SOME
LEGISLATIVE MODELS THAT WE'VE
SEEN, UM SO THAT THAT'S ONE
EXAMPLE OF IS THE NEED TO
CONSIDER. UM MULTIPLE AREAS OF
INTERVENTION OR THE WAY THAT ANY
KIND OF SUBSIDY BASED PROGRAM,
FOR EXAMPLE, UM, WOULD NEED TO
BE CONSIDERED IN LIGHT OF OTHER
POTENTIAL INTERVENTIONS THAT
MIGHT BE NECESSARY IN ORDER TO
ENSURE IT IS HAVING THE TARGETED
EFFECT AND TO AVOID POTENTIAL
NEGATIVE CONSEQUENCES OR
COLLATERAL CHALLENGES. AS A
RESULT, YOU GIVE US YOUR SENSE
OF THE STATE OF THE I'M SURE YOU
READ ABOUT THE NEGOTIATIONS AND
THE FIGHT BETWEEN CANADA NO.
WELL, YES IN CANADA AS IT
RELATES TO THE LEGISLATION THAT
WAS CONSIDERED HERE. AND OH,
YEAH. YOU KNOW SOME OF THE SAME
ISSUES AND DEBATES WERE
HAPPENING, AND OF COURSE, THE
BILL WAS STALLED. UM BUT IT'S
LARGELY BUILT OUT OF THE
CONVERSATION IN CANADA LOVE TO
GET YOUR WELL, SO IN CANADA'S AS
I'M SURE YOU'RE GOING TO HEAR
LATER AND I'M SURE YOU'RE
ALREADY AWARE GOOGLE JUST CAME
TO A SETTLEMENT WITH THE
CANADIAN GOVERNMENT. UM. I
EXPECT WHY? YOU KNOW I HAVE NO
INSIGHT INTO THE NEGOTIATIONS
THERE. I THINK YOU'LL YOU'LL
HEAR IT FROM CANADIAN FOLKS
LATER TODAY, BUT I MEAN, YOU
KNOW, IT'S GOOD TO KNOW THAT
THERE IS THESE THINGS ARE BEING
RESOLVED. THESE THINGS ARE
POTENTIALLY BEING RESOLVED. THE
THREAT FROM THE PLATFORM IS TO
PULL OUT OF AUSTRALIA OUT OF
OFFERING NEWS IN AUSTRALIA.
SIMILARLY EVENTUALLY A
SETTLEMENT WAS NEGOTIATED TO
THAT. SO UM, I THINK YOU KNOW,
IN TERMS OF THE PLATFORMS,
COMPLAINTS OR SORT OF THREATS
AROUND THE LEGISLATION, IT'S
IMPORTANT TO UNDERSTAND THEM IN
TWO WAYS. UM YOU KNOW? ON THE
ONE HAND, THERE'S CONCERNS
AROUND PLATFORMS, JUST
WITHDRAWING FROM THE
JURISDICTION ENTIRELY. I DON'T
THINK THAT'S PRACTICAL IN A
CALIFORNIA CONTEXT. FRANKLY I
DON'T THINK THAT WAS EVER
PRACTICAL IN AN EU CONTEXT OR AN
AUSTRALIAN CONTEXT OR CANADIAN
CONTEXT WERE SIMILAR THREATS
WERE MADE, UM BUT YOU KNOW, AS I
WAS TRYING TO ALLUDE TO IN MY
REMARKS, THERE'S A BROADER
CHALLENGE AROUND. INCENTIVE
IZATION. AND GAMING OUT WHAT THE
LIKELY PRACTICAL RESPONSE TO UM,
MODERATION AND CONTENT.
AMPLIFICATION IS GOING TO BE TO
THIS KIND OF LEGISLATION RIGHT?
SO AH, YOU KNOW, THE IDEA THAT
PLATFORMS ARE GOING TO REFUSE TO
CARRY ANY NEWS IS SORT OF THE
EXTREME END OF THAT. BUT THERE
ARE ALSO LIKELY SCENARIOS WHERE,
IF THE NEWS SNIPPETS COST THE
PLATFORMS MONEY, UM AND YOU KNOW
THE PICTURES OF YOUR DOG OR FREE
THAN THE PLATFORMS ARE GOING TO
TREND TOWARDS EMPHASIZING MORE
CONTENT. THAT'S PICTURES OF YOUR
PETS AND YOUR FAMILY'S UNLESS
CONTENT THAT INVOLVES NEWS JUST
BECAUSE THAT'S THE BEST WAY TO
TAKE CARE OF THEIR BOTTOM LINE.
BUT UNLESS YOU HAVE FOLKS THAT
ARE WILLING TO OFFER THEIR QUOTE
UNQUOTE NEWS FOR FREE. WELL OR
IF THERE ARE PARALLEL
LEGISLATIVE INTERVENTIONS THAT
CAN BE MADE IN ORDER TO IMPACT
THOSE OR TO CONSIDER THOSE
POTENTIAL. UH THERE'S POTENTIAL
INCENTIVE STRUCTURES RIGHT SO IN
THE EU UM, THE, UH, I THINK IT
WAS IN FRANCE. UM, THAT UH, ONE
OF THE PLATFORMS. AH! RESPONDED
TO LEGISLATION AROUND AROUND
CARPET BASED INTERVENTION BY UM
WITH DRYING FROM DISTRIBUTING
NEWS ALTOGETHER. AND THEY WERE
HIT WITH A FINE. FROM THE
COMPETENCE FROM THE COMPETITION
REGULATOR, THE ANTITRUST REGULAR
CLAIMING THAT IT WAS AN ABUSE OF
MARKET POSITION, RIGHT. THAT'S
ONE EXAMPLE OF PARALLEL
LEGISLATIVE INTERVENTIONS THAT
CAN BE DONE TO ENSURE THAT YOU
KNOW, THE INCENTIVE STRUCTURE
THAT YOU'RE CREATING IS NOT
UNDERCUTTING THE ULTIMATE GOAL
OF YOUR LEGISLATION. OBVIOUSLY.
THAT'S OBVIOUSLY NOT THE KIND OF
THING THAT YOU CAN DO. THAT'S
NOT A STRUCTURE OF INTERVENTION
THAT YOU CAN BE THAT CAN BE DONE
HERE. BUT MY POINT IS THAT IT'S
IMPORTANT TO GAME OUT LIKELY
RESPONSES AND TO THINK THROUGH
AND ENSURE THAT THE INCENTIVE
STRUCTURE THAT'S BEING CREATED
IS ONE THAT PROMOTES EDUCATION.
INFORMATION. INTEGRITY. YEAH.
OKAY, I'M. BUT WHAT WE'RE GOING
TO HAVE AN OPPORTUNITY TO TALK
TO A LOT OF FOLKS. OKAY? ALL
RIGHT. THANK YOU, MR KARR.
NICHOLAS THANK YOU. A COUPLE OF
THINGS. ONE IS THANK YOU,
SENATOR. I WAS UNAWARE OF THE
2ND AND 3RD ORDER IMPACTS IN
TERMS OF FINANCING WHEN THERE'S
A LACK OF LOCAL JOURNALISM, UM,
ONE POINT AND PERHAPS OTHERS
LATER ON CAN ADDRESS THIS IS
THAT I TAKE YOUR POINT THAT
PLATFORMS CAN THREATEN TO
BASICALLY UH, VACATE THE SPACE,
BUT IT LOOKS LIKE IN CANADA THAT
MET AT LEAST IT WASN'T JUST
GOOGLE IT. SORRY. MY APOLOGIES.
META THAT, ACTUALLY, RIGHT,
RIGHT, UM VACATED THE SPACE AND
I DON'T KNOW IF THEY'RE COMING
BACK OR NOT, BUT IT WAS. IT WAS
MORE THAN A THREAT SO OTHERS CAN
TALK ABOUT THAT LITTLE LATER ON,
BUT THANK YOU VERY MUCH. ALRIGHT
WE'RE NOT GOING TO GO TO OUR
NEXT PANEL, OUR NEXT PANEL OF
TECHNOLOGY AND THE NEWS INDUSTRY
AND, UM, WE'RE GOING TO PLAY
MUSICAL CHAIRS OF SORTS. WE'VE
GOT FOUR CHAIRS, AND WE'VE GOT
FIVE PANELISTS. SO UH, THE FIRST
FOUR OF YOU THAT COME UP YOU'RE
THE WINNERS. RIGHT? UH WHAT
WE'LL DO IS AS I MENTIONED THERE
WILL AFTER WE HEAR FROM ALL THE
PANELISTS, UM THEN WE'LL PROCEED
THE QUESTIONS AND WE'LL JUST ASK
WHOMEVER IS THAT I ACTUALLY
DIDN'T GET A SEAT TO COME TO THE
PODIUM, SO LET'S START WITH MR
MR CRESCENT. MR. CRESCENT FLOOR
IS YOURS.
MR CHAIR MEMBERS OF THE
COMMITTEE. THANK YOU FOR GIVING
ME THE TIME TO SPEAK WITH YOU
TODAY BY WAY OF BACKGROUND. I'M
AN ANTITRUST ATTORNEY IN PRIVATE
PRACTICE, AND I REPRESENT THE
NEWS MEDIA ALLIANCE AND SEVERAL
NEWS PUBLISHERS AND I'VE BEEN
INVOLVED IN ANTITRUST MATTERS
INVOLVING THE DOMINANT ONLINE
PLATFORMS FOR MORE THAN A
DECADE. TODAY I WANT TO HELP TO
MYSTIFY TWO CRUCIAL PROCESSES
THAT FORM THE BACKGROUND OF OUR
INTERNET EXPERIENCE CRAWLING AND
INDEXING THE SILENT WORKHORSES
OF ANY SEARCH ENGINE AND OTHER
ONLINE PLATFORM. HOW DO THE
INTERNET GIANTS GET CONTENT FROM
THE OPEN WEB? WHAT CONTROLS DO
CONTENT CREATORS HAVE AND WHAT
DETERMINES HOW THE INTERNET
GIANTS USE THAT CONTENT? IMAGINE
THE INTERNET AS AN EVER
EXPANDING LIBRARY WITH BILLIONS
OF BOOKS. BUT THERE'S A CATCH.
THIS LIBRARY HAS NO CENTRAL
FILING SYSTEM. HOW DO YOU FIND
THE BOOK YOU NEED, AND THAT'S
WHERE CRAWLING AND INDEXING COME
IN. CRAWLING IS THE DISCOVERY
PROCESS. SEARCH ENGINES SEND OUT
ROBOTS KNOWN AS CRAWLERS, OR
SPRITE SPIDERS, WHICH MOVED FROM
PAGE TO PAGE WEBSITES WEBSITE
FOLLOWING LINKS IN PRACTICAL
TERMS, WE'RE TALKING ABOUT A
COMPUTER PROGRAM THAT OPENS A
VERSION OF A BROWSER NAVIGATE,
NAVIGATES TO WEB PAGES AND
COPIES THE CONTENT OF THOSE
PAGES TO ITS DATABASES BEFORE
LINKING TO THE NEXT PAGE.
COLLEEN IS ABOUT DISCOVERING
CONTENT INDEXING IS ABOUT
ORGANIZING. AFTER CRAWLER VISITS
A PAGE HANDS OFF THE INFORMATION
TO THE SEARCH ENGINE OR DIGITAL
PLATFORM TO BE INDEXED INDEXING
IS THE PROCESS OF TAKING ALL
THAT CONTENT THOSE BILLIONS OF
PAGES AND ORGANIZING THEM IN A
WAY THAT ALLOWS THE PLATFORM TO
UTILIZE IT. BOTH PROCESSES ARE
DYNAMIC AND ONGOING BECAUSE THE
INTERNET IS NOT A STATIC ENTITY.
IT'S CONSTANTLY CHANGING, WITH
NEW CONTENT BEING ADDED CONTENT
BEING REMOVED AND EXISTING
CONTENT BEING UPDATED. GOOGLE'S
WEB CRAWLER, KNOWN AS THE GOOGLE
BOT, IS AN INTERNET BOT THAT IS
PARTICULARLY SOPHISTICATED,
UNLIKE SIMPLER CRAWLERS GOOGLE
BUT USES A COMPLEX SET OF
ALGORITHMS DETERMINE WHICH SITES
TO CRAWL. HOW OFTEN AND HOW
PAGES HOW MANY PAGES INDEX FROM
EACH SITE IT CONSIDERS FACTORS
SUCH AS PAGE RANK SITE UPDATES,
LINKS AND SITE TRAFFIC, GOOGLE
BOTS PURPOSES TO BUILD A MORE
ORGANIZED INDEX FOR GOOGLE
SEARCH ENGINE AND ITS OTHER
PRODUCTS. SO I EXPLAINED HOW
CRAWLING AND INDEXING WORK FROM
SEARCH PROVIDERS OR DIGITAL
PLATFORMS PERSPECTIVE. HOW DO
THINGS WORK FROM A WEB
PUBLISHERS PERSPECTIVE
PUBLISHERS OFT OUT OF HAVING
THEIR CONTENT CRAWLED IN INDEX
AND IF SO, WHAT EFFECT? DOES
THAT HAVE? HOW REALISTIC AN
OPTION IS IT? THE KEY TO
ANSWERING THE FIRST QUESTION.
HOW PUBLISHERS CAN OPT OUT IS A
THING CALLED ROBOTS DOT TEXT AND
ROBOTS START TEXT AS A TEXT FILE
THAT WEB MASTERS CAN USE TO
INSTRUCT WEB CRAWLERS HOW TO
CRAWL THEIR PAGES ON THEIR
WEBSITE AND PART OF IT'S A PART
OF A GROUP OF WEB STANDARDS THAT
REGULATE HOW ROBOTS CRAWL THE
WEB ACCESS AND INDEX CONTENT AND
SERVE THAT CONTENT TO USERS. IN
ESSENCE, ROBOTS A TEXT SETS
RULES FOR ENGAGEMENT. YOU CAN
TELL CRAWLERS WHICH AREAS OF THE
SITE SHOULD BE AVOIDED. AND AS
YOU CAN SEE FROM THE SLIDE, THE
ROBOTS DOT TEXT FILE IS
RELATIVELY SIMPLE. THE
PARTICULAR EXAMPLE HERE IS A
MERE FOUR LINES, AND IT
BASICALLY ALLOWS THE GOOGLE BAT
GOOGLE BOT TO CRAWL EVERY PAGE
ON THE SITE AND INDEXES CONTENT
BUT DISALLOWS ALL OTHER FORMS
CRAWLERS. IT'S CRUCIAL
UNDERSTAND, HOWEVER, THAT THE
ROBOTS ON TEXAS DIRECTIVE NON
ENFORCEMENT WHILE REPUTABLE
CRAWLERS, FOLLOW THE
INSTRUCTIONS AND ROBOTS DOT TEXT
FILE. IT DOES NOT PHYSICALLY
PREVENT ACCESS TO THE FILES AND
DIRECTORIES ON ITS SITE. SEARCH
ENGINES LIKE GOOGLE USE THE
ROBOT'S ATTACKS AS UH, TO DECIDE
WHETHER TO CRAWL OR INDEX
INSIGHT, BUT IT DOES NOT CONTROL
HOW THEY UTILIZE THE CONTENT
THAT THEY ACCESS. FOR EXAMPLE,
PUBLISHERS OFTEN WANT TO HAVE
THEIR CONDUCT CONTENT CRAWLED
AND INDEXED BY THE GOOGLE BOT,
SO THEIR PAGES APPEAR IN GOOGLE
SEARCH RESULTS MANY HAVE
DESCRIBED GOOGLE SEARCH RESULTS
IS THE GATEWAY TO THE INTERNET
AND FAILING TO APPEAR THERE
COULD BE THE DEATH OF A WEBSITE.
BUT WHILE PUBLISHERS MAY WANT TO
APPEAR IN GOOGLE ORGANIC SEARCH
RESULTS I EITHER 10 BLUE LINKS
THAT WE USUALLY THINK OF AS THE
CONTENT OF GOOGLE SEARCH RESULTS
PAGE THEY MAY OR MAY NOT WANT
THEIR CONTENT TO BE USED BY
GOOGLE, FOR EXAMPLE, TO TRAIN
IT'S A I MODELS OR TO APPEAR IN
SPECIALIZED ELEMENTS OF THE
SEARCH PAGE DESIGNED TO KEEP
USERS ON THE SEARCH RESULTS PAGE
RATHER THAN NAVIGATING TO
PUBLISHER SITES. THE PROBLEM IS
THAT ROBOTS DOT TEXT DOESN'T
GIVE PUBLISHERS ESSENTIALLY
GIVES PUBLISHERS ONLY A BINARY
CHOICE. ALLOW THE GOOGLE BLOCK
TO CRAWL AND INDEX YOUR CONTENT
OR DON'T GOOGLE DOES WITH THE
CONTENT INDEXES IS LEFT ENTIRELY
UP TO HIS OWN POLICIES, AND
INDIVIDUAL PUBLISHERS LACK THE
MARKET POWER TO BARGAIN OVER THE
CONDITIONS BY WHICH DOMINANT
PLATFORMS UTILIZE AN INDEX THEIR
CONTENT. FOR MOST PUBLISHERS,
THEN THIS IS A HOBSON'S CHOICE.
THEY CAN BLOCK GOOGLE'S WEB
CRAWLERS AND EFFECTIVELY
DISAPPEARED FROM THE WEB. OR
THEY CAN GIVE THE DOMINANT
PLATFORMS ACCESS UNFETTERED
ACCESS TO THE CONTENT. SO I'D
LIKE TO FINISH BY SOME SLIDES,
EXPLAINING WHY SOME PUBLISHERS
MIGHT NOT WANT GOOGLE OR OTHER
DOMINANT PLATFORMS TO HAVE
UNFETTERED ACCESS TO THE
CONTENT. HERE'S A SCREENSHOT OF
A RECENT MOBILE SEARCH ON GOOGLE
FOR THE QUERY ACTOR STRIKE AND
THIS IS A REAL SCREENSHOT. WE
HAVEN'T MANIPULATED IT OR
ADJUSTED ANYWAY, AS YOU CAN SEE,
AT THE TOP OF THE PAGE IS MOSTLY
OCCUPIED BY A TOP STORIES BOX,
WHICH INCLUDES HIGH RESOLUTION
IMAGES FROM NEWS ARTICLES
ARRANGED IN HORIZONTAL CAROUSEL
THAT USERS CAN SWIPE LEFT AND
RIGHT. BELOW THAT SECTION IS
RELATIVELY NEW FUTURE CALLED
PEOPLE ALSO ASK. THIS SECTION
PROVIDES DETAILED ANSWERS TO
COMMON QUESTIONS ON THE QUEER
TOPIC. GOOGLE GETS THESE ANSWERS
BY ACCEPTING CONTENT INDEX
DIRECTLY FROM NEWS ARTICLES. IN
THIS CASE, IT'S ACCEPTED CONTENT
FROM VULTURE DOT COM AND ALSO
THE ASSOCIATED PRESS. THE NEXT
SECTION CONTAINS AND ABOUT AND
QUICK FACTS SECTION WHICH
PROVIDES MORE DIRECT INFORMATION
ABOUT THE TOPIC DIRECTLY ON
GOOGLE SEARCH RESULTS PAGE AND
FINALLY, AFTER SCROLLING WELL
DOWN THE PAGE WE GET TO THE
ORGANIC SEARCH RESULTS. THESE
ARE NO LONGER 10 BLUE LINKS NOW
THEY INCLUDE HIGH RESOLUTION
PHOTOS FROM THE ARTICLES AND
AGAIN LENGTHY SNIPPETS. AND
WHILE THEY DON'T HAVE AN EXAMPLE
OF FACEBOOK'S PAGE HERE, THEIR
DISPLAY OF NEWS CONTENT IS
SIMILAR AND OFTEN INCLUDES EVEN
LENGTHIER EXCERPTS THAN THE ONES
SHOWN HERE. AND, UM EVEN HIGHER
LARGE RESOLUTION IMAGES THAT ARE
SCRAPED FROM THE SITE. IN EACH
CASE. THE PLATFORM DESIGNS THE
SEGMENTS OF THE SEARCH RESULTS
PAGE AND THE OTHER PLATFORMS TO
KEEP USERS ON THE PAGE,
OBVIATING ANY NEED OR DESIRE FOR
THE USER TO CLICK AWAY TO THE
CONTENT CREATOR WHO'S ACTUALLY
CREATED PUBLISHED THE ARTICLES.
AND THIS EXAMPLE DOES NOT
INCLUDE GOOGLE'S NEW COMING OR
FORTHCOMING AI FEATURES, WHICH
ARE STILL IN BETA, BUT WILL
LIKELY SOON OCCUPY THE PRIORITY
POSITION AT THE TOP OF GOOGLE.
SEARCH RESULTS. PAGE PUBLISHERS
MAY WISH TO PREVENT GOOGLE FROM
USING THEIR CRAWLED AND INDEXED
CONTENT FOR ANY ONE OF THESE
SEGMENTS. THE GOOGLE GENERALLY
DOES NOT GIVE THEM THAT CHOICE.
THE CHOICE IS TO GIVE GOOGLE
EFFECTIVELY UNFETTERED. USE OR
TO DISAPPEAR FROM THE SEARCH
PAGE ALTOGETHER. SO ONE FINAL
POINT. I'D LIKE TO EMPHASIZE AND
FINISH ON THAT THIS IS AN ISSUE
ABOUT ACCESS, PROGRAMMATIC
ACCESS TO CONTENT. IT'S NOT
ABOUT COPYRIGHT. I'M NOT TAKING
A POSITION ON WHETHER ANY OF
THIS UNLICENSED USE OF CONTENT
IS AN INFRINGEMENT OR FAIR USE.
COPYRIGHT DISCUSSIONS IN THIS
CONTEXT ACTUALLY WENT RED
HEARING. THE ACTUAL ISSUE IS THE
TERMS ON WHICH PUBLISHERS GIVE
ONLINE PLATFORMS PROGRAMMATIC
ACCESS TO THEIR CONTENT. THROUGH
CRAWLING AND INDEXING. IN A
COMPETITIVE MARKET, ONE IN WHICH
GOOGLE AND THE OTHER DOMINANT
PLATFORMS FACED REAL COMPETITION
FOR VIABLE ALTERNATIVES.
PUBLISHERS WOULD BE ABLE TO
NEGOTIATE OVER PLATFORMS ABILITY
TO ACCESS THE CONTENT
PROGRAMMATICALLY THROUGH
CRAWLING AND INDEXING. YOU MIGHT
SAY YOU CAN INDEX ARE CONTENT
FOR OR CERTAIN APPEARING IN
ORGANIC SEARCH RESULTS, BUT NOT
FOR USE IN A I ILLUSTRATION ON
THE LEFT HAND OF THE SLIDE SHOWS
WITH A COMPETITIVE MARKET. UH
SORRY. I'M JUST GOING FORWARD.
BUT TODAY THESE NEGOTIATIONS
DON'T TAKE PLACE WHEN WE INSTEAD
YET IT'S SOMETHING THAT LOOKS
LIKE THE ILLUSTRATION ON THE
RIGHT SIDE UP HERE. WE'RE
ESSENTIALLY YOU HAVE A CHOICE OF
WHETHER TO GRANT ACCESS TO THE
CRAWLER OR NOT, AND THEN THE
PUBLIC. THE PLATFORM GETS
UNFETTERED USE FOR ANY OF THE
PRODUCTS THAT IT MIGHT UTILIZE
THAT CONTENT FOR AS DR SINGER
WILL TESTIFY SHORTLY. THIS
PROBLEM HAS SEVERE CONSEQUENCES
FOR THE NEWS INDUSTRY AND
SOCIETY. MORE BROADLY ONCE AGAIN
THANK YOU FOR GIVING ME THIS
OPPORTUNITY TO SPEAK, AND I LOOK
FORWARD TO YOUR QUESTIONS.
PRESIDENT I HAVE QUESTIONS, BUT
I'M GONNA WITHHOLD TILL THE END.
I KNOW YOU LOOK FORWARD STUFF.
SO PROFESSOR SINGER.
ALL RIGHT. WELL, THANK YOU SO
MUCH TO THE JUDICIARY COMMITTEE
FOR INVITING ME AND HOSTING THIS
IS VERY IMPORTANT DISCUSSION.
WHERE SEVERAL HATS AS THE SLIDE
SHOWS TEACH ECONOMICS AT THE
UNIVERSITY OF UTAH, AND I AWFUL
ALSO SERVE AS A EXPERT AND
ANTITRUST MATTERS OR ARBITRATION
DISPUTES. BUT TODAY I'M HERE AS
A CONSULTANT TO THE NEWS MEDIA
ALLIANCE, N M. A MY VIEWS
IMPORTANTLY, DO NOT EXPRESS THE
VIEWS OF THE UNIVERSITY OF UTAH.
IN THE INTERESTS OF DISCLOSURE.
I WAS COMMISSIONED BY THE ENEMY
TO WRITE A WHITE PAPER ON THE
ECONOMICS OF THE RELATIONSHIP
BETWEEN NEWS PUBLISHERS AND
DOMINANT PLATFORMS, AND I WOULD
HOPE THAT IN THE INTEREST OF
FAIRNESS AND OPENNESS, OTHER
DISCUSSIONS ON TODAY'S PANEL
SIMILARLY DISCLOSED THEIR
RELATIONSHIPS WITH INTERESTED
PARTIES, PARTICULARLY WITH THE
DOMINANT PLATFORMS. OUR COUNTRY
IS SUFFERING A CRISIS IN THE
LOCAL NEWS INDUSTRY AS LOCAL
NEWS PUBLISHERS ARE SHUTTERING
THEIR DOORS AND THE NUMBER OF
JOBS IN THE NEWS INDUSTRY
PLUMMETS. THE MEDILL SCHOOL OF
JOURNALISM AT NORTHWESTERN HAS
BEEN TRACKING THE DISAPPEARANCE
OF LOCAL NEWS OUTLETS. THIS
FIGURE SHOWS A MAP OF THE UNITED
STATES COLOR CODED BY THE NUMBER
OF LOCAL NEWS OUTLETS. YELLOW
MEANS ZERO LOCAL NEWS OUTLETS
AND PER MCGILL'S COUNTING. THERE
ARE MORE THAN 200 COUNTIES
NATIONWIDE THAT HAVE ZERO LOCAL
NEWS OUTLETS. AND WHEN A COUNTY
LOSES A NEWS OUTLET, THE VOID IS
OFTEN FILLED WITH HIS
MISINFORMATION. THERE ARE A HOST
OF OTHER LOCAL ECONOMIC COSTS
THAT I WON'T GET INTO HERE. BUT
I HAVE A WHITE PAPER AND NOW AN
ARTICLE IN A COLUMBIA LOT AND
ENTERTAINMENT, UM, JOURNAL, IF
YOU'RE INTERESTED. NOW THE
PROBLEM OF DISAPPEARING NEWS
OUTLETS ALSO PLAGUES CALIFORNIA.
ACCORDING TO THE SAME STUDY.
CALIFORNIA HAS FOUR COUNTIES
WITHOUT A NEW SOURCE AND 11
COUNTIES WITH ONLY ONE AND THE
BAY AREA IS AMONG THE 20 METRO
AREAS THAT HAVE LOST THE MOST
NEWS OUTLETS PER CAPITA SINCE
2005. PURE RESEARCH HAS BEEN
CHARTING THE NUMBER OF JOBS IN
THE NEWS INDUSTRY AND THE STATS
ARE SOBERING. SINCE 2008. THE
NUMBER OF JOBS AT NEWSPAPER
PUBLISHERS HAS DECLINED FROM
71,000 TO 31,000. NOW THAT
40,000 REDUCTION IN JOBS HAS
BEEN PARTIALLY OFFSET BY 11,000
GAIN IN DIGITAL NATIVE JOBS,
INCLUDING INTERNET PUBLISHING
AND BROADCASTING, BUT THE NET
LOSS IS STILL SIGNIFICANT. A
CRITICAL ROLE OF NEWS PUBLISHERS
IS TO HOLD LOCAL REPRESENTATIVES
ACCOUNTABLE AND TO PREVENT
ABUSES BY THE GOVERNMENT. AS THE
CHAIRMAN EXPLAINED, I THINK ALL
SIDES IN THIS DEBATE RECOGNIZED
THAT MARKET FORCES CANNOT BE
COUNTED ON TO PROTECT THE NEWS
INDUSTRY AND TO PROTECT OUR
DEMOCRACY AND THAT SOME
INTERVENTION IS WARRANTED. THE
RELEVANT POLICY QUESTION IS WHAT
IS CAUSING THIS DECLINE IN
NEWSPAPER REVENUES AND OBVIOUS
CANDIDATE IS THE CONDUCT OF
GOOGLE AND FACEBOOK, WHICH HAVE
COME TO DOMINATE ONLINE
ADVERTISING MARKETS ASSOCIATED
WITH SEARCH AND SOCIAL MEDIA,
RESPECTIVELY. THIS FIGURE CHARTS
THE DEMISE OF NEWSPAPER REVENUES
AGAINST THE METEORIC RISE OF
GOOGLE'S ONLINE REVENUE
ADVERTISING REVENUES. THE GREEN
LINE REPRESENTS NEWSPAPER
ADVERTISING REVENUES, WHICH
BEGIN TO DECLINE. NOT
COINCIDENTALLY, RIGHT AROUND THE
TIME THAT GOOGLE'S AD REVENUES
FROM FROM SEARCH SHOWN IN BLUE
BEGIN TO TAKE OFF IN 2005. WE
KNOW THE TWO OFFERINGS ARE
COMPETING FOR THE SAME SET OF
EYEBALLS AND ADVERTISERS AND, AS
THE NEXT SLIDE EXPLAINS, THERE
IS A CAUSAL NEXUS BETWEEN THE
TWO SERIES SURVEY EVIDENCE.
REVEALS THAT NEWS CONTENT IN
LARGE PART DRIVES AUDIENCE AND
HENCE IMPRESSIONS ON THE
PLATFORMS. WE CAN STUDY. THE
PERCENT OF USERS WHO RELY ON
PLATFORMS FOR NEWS AND HOW MANY
TIMES PER DAY THEY GO TO THE
PLATFORMS FOR NEWS. THE
PLATFORMS IS, MR CRESCENT
EXPLAINED, SCRAPE AND REPACKAGE
NEWS CONTENT, WHICH THEY THEN
DISPLAY ON THEIR OWN WEBSITES.
THE PLATFORMS CAN THEN MONETIZE
THIS IMPRESSION DATA WHEN
SELLING ADVERTISING SELLING
ADVERTISEMENTS. IMPRESSIONS ARE
ALSO VALUABLE TO THE PLATFORMS
BECAUSE THEY CAPTURE USER
PREFERENCES WHEN USERS LOOK AT
CONTENT ON THE PLATFORM
IMPORTANTLY, THIS VALUE IS
APPROPRIATED FROM NEWS
PUBLISHERS WELL BEFORE WELL
BEFORE THERE ARE ANY CLICK
THROUGHS TO NEWS PUBLISHER
CONTENT. IN MANY CASES, A USER
CAN READ A SNIPPET OF CONTENT ON
THE PLATFORM AND NEVER CLICK
THROUGH. TO THE UNDERLYING
SOURCE AND THE REASON WHY
PLATFORMS CAN APPROPRIATE THIS
VALUE FROM KEY INPUT PROVIDERS
IS THE MASSIVE POWER AND BALANCE
A SINGLE NEWSPAPER CANNOT
CREDIBLY THREATEN TO DELIST
ITSELF FROM GOOGLE SEARCH. IF
THEY DON'T RECEIVE PAYMENTS FROM
GOOGLE. GOOGLE HAS A 95% SHARE
OF SEARCH. NOW A NEW STUDY BY
COLUMBIA UNIVERSITY'S INSTITUTE
FOR POLICY DIALOGUE ESTIMATES
THE PAY SHARES OR THE SHARE OF
PLATFORM ADVERTISING REVENUES
ATTRIBUTABLE TO HOSTING NEWS
CONTENT ON THEIR SITES RIGHT NOW
THAT PAY SHARE IS ESSENTIALLY
ZERO. GOOGLE AND FACEBOOK PAY
NEXT TO NOTHING TO REPACKAGE AND
USE NEWS CONTENT ON THEIR SITES.
THE AUTHORS ESTIMATE NEWS
PUBLISHERS WOULD CAPTURE 17.5%
OF GOOGLE'S US SEARCH AD
REVENUES IN A COMPETITIVELY
SUPPLIED SEARCH MARKET AND 6.6%
OF FACEBOOK'S US AD REVENUES IN
A COMPETITIVELY PROVIDE SOCIAL
MEDIA MARKET PUT DIFFERENTLY FOR
EVERY DOLLAR OF ADVERTISING
VALUE. THAT GOOGLE GENERATES ON
SEARCH ADS. 17.5 CENTS WOULD GO
TO PUBLISHERS UNDER COMPETITIVE
CONDITIONS PER THE STUDY NOW, IF
ONE WERE TO APPLY THE PAY SHARES
FROM THE COLUMBIA STUDY TO
GOOGLE'S AND FACEBOOK'S
ADVERTISING REVENUES IN
CALIFORNIA. ONE WOULD GET A $2.1
BILLION ANNUAL PAYMENT FROM
GOOGLE TO THE PUBLISHERS AND A
$0.3 BILLION ANNUAL PAYMENT FROM
FACEBOOK TO THE PUBLISHERS. THIS
SLIDE EXPLAINS THE METHODOLOGY
UNDERGIRDING THE COLUMBIA
STUDY'S FINDINGS. NOW THAT THE
AUTHORS ESTIMATED GOOGLE'S PAY
SHARES FROM THE FAIR STUDY,
WHICH CALCULATED WHAT SHARE OF
SEARCHES WERE INFORMATION
SEARCHES ON THE GOOGLE PLATFORM,
AND WITHIN INFORMATION SEARCHES.
WHAT SHARE OF USER DEMAND FOR
RESULTS COMES FROM NEWS MEDIA
PUBLISHERS. THE AUTHORS
ESTIMATED FACEBOOK PATIENTS FROM
A STUDY IN THE AMERICAN
ECONOMICS REVIEW, WHICH EXAMINED
THE PERCENT OF TIME USERS SPENT
ON FACEBOOK CONSUMING OR
INTERACTING WITH NEWS CONTENT. I
MYSELF HAVE PERFORMED ORIGINAL
VALUATION OF THE PUBLISHERS PAY
SHARES IN A COMPETITIVE MARKET.
FOR EXAMPLE, I OVERSAW A SURVEY
OF U. S CONSUMERS ON GOOGLE AND
FACEBOOK. ASKING HOW MUCH TIME
THEY SPENT CONSUMING NEWS ON THE
PLATFORM AND HOW MUCH LESS TIME
THEY WOULD SPEND ON THE
PLATFORM. IF THERE WERE NO NEWS.
I'VE ALSO STUDIED THE PERCENT OF
IMPRESSIONS ON GOOGLE AND
FACEBOOK ATTRIBUTABLE TO
NEWSPAPER CONTENT. AND WHILE MY
ESTIMATES OF THE PATIENTS TEND
TO BE MORE CONSERVATIVE THAN
THOSE OF THE COLUMBIA STUDY, I
CONCLUDE THAT THE METHODOLOGY
EMPLOYED BY THE STUDY'S AUTHORS
IS REASONABLE. I ALSO THOUGHT IT
WOULD BE HELPFUL TO PROVIDE
ESTIMATES OF WHAT HAS BEEN PAID
BY THE PLATFORMS. THE NEWS
PUBLISHERS IN OTHER
JURISDICTIONS WHERE GOVERNMENTS
HAVE INTERVENED TO REPLICATE
COMPETITIVE OUTCOMES, I ESTIMATE
THAT GOOGLE HAS PAID ABOUT $134
MILLION TO AUSTRALIAN NEWS
PUBLISHERS. ABOUT 4.1% OF
AUSTRALIAN GOOGLE SEARCH
REVENUES. THAT THIS PATIENT
WOULD TRANSLATE INTO ROUGHLY
$0.5 BILLION PER YEAR IN
CALIFORNIA. I ALSO ESTIMATE THAT
GOOGLE HAS PAID ABOUT $74
MILLION TO CANADIAN NEWS
PUBLISHERS OR ABOUT 1.7% OF
CANADIAN GOOGLE SEARCH REVENUES,
THIS PAY SHARE WOULD TRANSLATE
INTO ROUGHLY $0.2 BILLION PER
YEAR IN CALIFORNIA. UM THESE
NUMBERS ARE CERTAINLY LOWER THAN
THE $2.1 BILLION PAYMENT IN
CALIFORNIA, IMPLIED BY THE
COLUMBIA STUDY, BUT IT BEARS
NOTING THAT THESE PAY SHARES IN
AUSTRALIA AND CANADA LIKELY
UNDERSTATE THE FULL AMOUNT THAT
HAS BEEN PAID OR WOULD BE PAID
TO ALL ELIGIBLE NEWS PUBLISHERS
UNDER THE CALIFORNIA BILL, FOR
EXAMPLE, THE ELIGIBILITY
REQUIREMENTS IN CANADA EXCLUDES
LIFESTYLE OR SPORTS
PUBLICATIONS. THE COLUMBIA
STUDY, WHICH SHOWED A MUCH
HIGHER PAY SHARE RELATES TO ALL
NEWS PUBLISHERS. FINALLY THE
CANADIAN FIGURE IS THE RESULT OF
A POLITICAL PROCESS AND WAS NOT
THE RESULT OF AN ARBITRATION.
NOW GIVEN THE POWER IMBALANCE
AND GIVEN THE OVERWHELMING
DEPENDENCY OF INDIVIDUAL
PUBLISHERS ON GOOGLE AND
FACEBOOK, MARKET FORCES CANNOT
BE COUNTED ON TO REMEDY THIS
PROBLEM. THE SOLUTION THAT MAKES
THE MOST SENSE TO AN ECONOMIST
FROM IS TO IMPOSE MANDATORY
BASEBALL BASEBALL STYLE
ARBITRATION. TO REPLICATE THE
PAYMENTS TO NEWS PUBLISHERS THAT
WOULD BE MADE IN A COMPETITIVE
WORLD. UNDER THIS PROCESS, THE
PUBLISHERS WOULD SUBMIT THEIR
BEST ESTIMATE OF THE PUBLISHERS
ADDED VALUE TO THE PLATFORMS.
THEN THE PLATFORMS WOULD SUBMIT
THEIR PRESUMABLY LOWER ESTIMATE
OF THE PUBLISHERS, CONTRIBUTION
TO VALUE AND FINALLY, THE
ARBITRATORS WOULD PICK THE
ESTIMATE. CLOSEST TO FAIR MARKET
VALUE. THIS TECHNIQUE IS USED BY
MANY COPYRIGHT TRIBUNALS AROUND
THE WORLD. MY LAST SLIDE. UM UM
REPRESENTS SOME CRITICISMS OF
ALTERNATIVE SOLUTIONS FIRST WITH
REGARD TO A TAX CREDIT. WE
ALREADY KNOW THE CAUSE OF THE
MISSING ADVERTISING REVENUE, THE
PLATFORM SCRAPING AND INDEXING
CONTENT FOR FREE. HENCE THIS
ALTERNATIVE DOES NOT ADDRESS THE
CAUSE OF THE PROBLEM WHERE THE
MARKET IMBALANCE IN THE FAIR
MARKET VALUE OWED BY THE
PLATFORMS AND OTHERS PROPOSE
MORE ANTITRUST INTERVENTIONS. UM
THE CURRENT PUBLISHER. THIS ALSO
WON'T WORK. THE CURRENT
PUBLISHER ANTITRUST SUIT AGAINST
GOOGLE IS AIMED AT REDUCING THE
TAKE RATE FOR CLICK THROUGHS.
REMEMBER, THE VALUE THAT'S BEING
APPROPRIATED HERE HAPPENS BEFORE
A CLICK THROUGH EVEN OCCURS.
THAT THAT THAT LAWSUIT WOULD
SEEK TO UNWIND CERTAIN
EXCLUSIONARY RESTRAINTS THAT ARE
CONTRIBUTING TO AN INFLATED TAKE
RATE, BUT THE COMPENSATION BEING
SOUGHT UNDER THIS LEGISLATION IS
UNRELATED TO THE TAKE RATE. IT
IS THE COMPETITIVE PAYMENT FOR
ACCESSING NEWSPAPER CONTENT IN
THE FIRST INSTANCE ALSO,
ANTITRUST MOVES SLOWLY. SORRY
RESPONDED QUESTIONS. THANKS.
THANKS FOR HAVING ALL RIGHT.
THANK YOU SO MUCH. ALL RIGHT. AH
NEXT, UM, THE VICE PRESIDENT OF
NEWS OR GOOGLE, RICHARD GINGRAS.
THANK YOU FOR BEING HERE, BY THE
WAY. JUST A NOTE FOR THOSE WHO
ARE OBSERVING IS THAT ALL THE
WITNESSES HERE TODAY ARE HERE
VOLUNTARILY. WE'RE NOT
SUBPOENAED ANYONE TO APPEAR AT
THIS HEARING. WE DID ASK FOR
REPRESENTATIVE OF META, AND THEY
HAVE DECLINED TO PROVIDE A
REPRESENTATIVE. SO HAVING SAID
THAT, MR JINGLES, THE FLOOR IS
YOURS. GOOD AFTERNOON CHAIR.
HAMBURG STATE SENATORS ASSEMBLY
MORE THAN TWO WEEKS MEMBERS OF
THE COMMITTEE AND I THANK YOU
VERY MUCH FOR THE OPPORTUNITY TO
BE HERE AND DELIGHTED TO BE
HERE. MY NAME IS RICHARD GINGRAS
. I AM GOOGLE'S VICE PRESIDENT
FOR NEWS. I HAVE SERVED IN THAT
ROLE FOR OVER A DECADE. WORKING
IN CLOSE COLLABORATION WITH THE
JOURNALISM COMMUNITY TO GUIDE
OUR EFFORTS TO DRIVE INNOVATION
TO PROVIDE NEW TOOLS. AND TO
TRAIN HALF A MILLION JOURNALISTS
ON SUBJECTS RANGING FROM
JOURNALIST SECURITY TO AUDIENCE
DEVELOPMENT. I'M ALSO A FORMER
PUBLISHER IN 1995. I PROVIDED
THE INITIAL FUNDING FOR THE
WEB'S FIRST DIGITAL NEWS
OFFERING IN SALON .COM. AND LEAD
SALON AS PUBLISHER FOR SEVERAL
YEARS. SO I'M KEENLY AWARE OF
BOTH THE CHALLENGES AND THE
OPPORTUNITIES THE INTERNET
PRESENTS TO JOURNALISTS AND
PUBLISHERS. TODAY WE ARE
CONSIDERING SERIOUS QUESTIONS
REGARDING THE FUTURE OF NEWS.
IT'S IMPORTANT TO UNDERSTAND
BOTH HOW WE GOT HERE AND WHERE
WE MIGHT GO. THE INTERNET. AS
YOU KNOW, MADE IT EASY FOR
ANYONE IN THE WORLD TO ACCESS A
WORLD OF INFORMATION. AND ALSO
PUT A PRINTING PRESS IN
EVERYONE'S HAND, ENABLING A
DIVERSE VOICES TO EXPRESS
THEMSELVES TO EVERY PERSON IN
THE WORLD OR MORE PRECISELY TO
ANYONE WILLING TO LISTEN. NOT
SURPRISINGLY, THE EXISTENCE OF
THE INTERNET HAS CHANGED THE
WORLD OF PUBLISHING. THE
COMPETITIVE INTERNET ENVIRONMENT
BROUGHT CHALLENGES FOR PRINT AND
LEGACY NEWS PUBLISHERS. THE VAST
MARKETPLACE OF INFORMATION THAT
IS THE WEB CHANGE THE
INFORMATION SEEKING BEHAVIORS OF
ALL OF US. DAILY REGIONAL
NEWSPAPERS WENT FROM BEING THE
INTERNET OF THEIR COMMUNITIES IN
1985 TO BEING ONE OF HUNDREDS OF
THOUSANDS OF SOURCES AVAILABLE
FROM AROUND THE WORLD. THE
INTERNET ALSO CHANGED THE
MARKETPLACE FOR ADVERTISING.
BEFORE THE INTERNET, A TYPICAL
AMERICAN METROPOLITAN NEWSPAPER
DERIVED ROUGHLY 90% OF ITS
REVENUE FROM ADVERTISING. BUT AS
CONSUMER BEHAVIOR CHANGED
ADVERTISING DOLLARS, ALSO
SHIFTED. THAT MEANS THAT THE AD
REVENUE GENERATED BY CLASSIFIEDS
, FOR EXAMPLE, DEPARTMENT STORE
HEADS SUPERMARKET ADS, WHICH WAS
A MAJORITY OF A TRADITIONAL
NEWSPAPERS. REVENUE IS NO LONGER
WHAT IT ONCE WAS FOR NEWS
COMPANIES. SINCE 1998. THANK
YOU, MR. DOWN YOURSELF, SIR.
SINCE 1998. GOOGLE'S MISSION HAS
BEEN TO MAKE THE WORLD'S
INFORMATION UNIVERSALLY
ACCESSIBLE AND USEFUL. CAN. YEAH
I TRY TO TAKE THAT DOWN, BUT I
CAN'T. IT'S NOT. YEAH. THANK
YOU, LINDA. OFFICES, DIVINATION
THAT VERY SPONSOR FOR
LEGISLATIVE THANKS RELATED TO
THE UNITED TECHNOLOGIES. THINGS
DOWN, OKAY? I'LL BE PLEASED TO
HELP WITH THAT IF I CAN.
CONNECTING YOU USERS TO NEWS
THAT MATTERS TO THEM AND
SUPPORTING JOURNALISM ARE
CONSISTENT WITH GOOGLE'S
MISSION. EVERY TIME SOMEONE
SEARCHES FOR NEWS VIA GOOGLE, WE
PROVIDE LINKS TO WEB PAGES AND A
SHORT SNIPPET OF TEXT THAT THE
USER CAN ACCESS AFTER CLICKING
ON THE LINK AND VISITING THE
PUBLISHER'S WEBSITE. WEBSITE
OWNERS, INCLUDING NEWS
PUBLISHERS DECIDE WHETHER WE ARE
ABLE TO LINK TO THEIR SITE. AND
A FAIRLY GRANULAR FASHION. AND
WHAT IF ANYTHING CAN BE USED IN
THE EXTRACT? WELL NEWS SEEKING
QUERIES ON GOOGLE SEARCH ACCOUNT
FOR UNDER 2% OF TOTAL QUERIES,
SEARCH AND GOOGLE NEWS, DR
BILLIONS OF INTERACTIONS WITH
NEWS CONTENT GLOBALLY.
FURTHERMORE NEWS CORY'S VERY
RARELY ATTRACT THE INTEREST OF
ADVERTISERS. IN FACT, WE DON'T
RUN ADS ON GOOGLE NEWS OR ON THE
NEWS RESULTS TAB ON GOOGLE
SEARCH NEARLY ALL THE ADS PEOPLE
SEE ON GOOGLE SEARCHES WITH
COMMERCIAL INTENT LIKE BUYING
SHOES OR KITCHEN APPLIANCES OF
FINDING A PLUMBER. BUT NOT FROM
NEW SEEKING QUERIES. WE ONLY
MAKE MONEY. ALSO IF ADS ARE
USEFUL AND RELEVANT AND CLICKED
ON BY THE USER. YOU CAN THINK OF
SEARCH AS THE LARGEST NEWSSTAND
ON EARTH. AND UNLIKE THE WORLD
OF PRINT, WHERE 30% OF THE
PUBLISHERS OPERATING EXPENSES GO
TOWARDS DISTRIBUTION, INCLUDING
PAIN NEWSSTANDS, GOOGLE SENDS
THIS TRAFFIC TO PUBLISHERS FOR
FREE. CONNECTING USERS TO NEWS
WEBSITES MORE THAN 24 BILLION
TIMES PER MONTH. THIS TRAFFIC IN
TURN, HELPS PUBLISHERS MAKE
MONEY BY SHOWING ADS OR
ATTRACTING NEW SUBSCRIBERS.
DELOITTE ESTIMATES THAT EACH
CLICK ON A LINK FROM GOOGLE
SEARCH IS WORTH 5 TO 7 CENTS TO
A NEWS PUBLISHER. IF YOU DO THAT
CALCULATION, THOSE 24 BILLION
VISITS WORTH WELL OVER A BILLION
AND A HALF DOLLARS PER MONTH TO
PUBLISHERS AROUND THE WORLD. FOR
OVER TWO DECADES, GOOGLE HAS
WORKED COLLABORATIVELY WITH
JOURNALISTS AND PUBLISHERS BY
PROVIDING TOOLS, TRAINING AND
RESOURCES TO GROW AUDIENCE DRIVE
REVENUE AND SUPPORT THE WORK OF
JOURNALISTS. TODAY. GOOGLE IS
ONE OF THE BIGGEST FINANCIAL
SUPPORTERS OF JOURNALISM AROUND
THE WORLD. AND OUR EFFORT HAVE A
SINGULAR THEME INNOVATION.
GOOGLE WORKS TO PROMOTE CONSUMER
ENGAGEMENT WITH NEWS BY
DEVELOPING TOOLS TO HIGHLIGHT
USEFUL AND RELEVANT NEWS
SOURCES. WE'VE WORKED TO ELEVATE
ORIGINAL REPORTING IN SEARCH AND
TO IMPROVE HOW WE PRESENT
RESULTS ON DEVELOPING NEWS
STORIES TO HELP PEOPLE BETTER
UNDERSTAND FAST MOVING TOPICS.
WE'VE DEVELOPED TOOLS FOR
PUBLISHERS LIKE READ A REVENUE
MANAGER, WHICH HELPS PUBLISHERS
DRIVE NEW SUBSCRIBERS AND ENGAGE
EXISTING SUBSCRIBERS ACROSS THE
WEB. TODAY. THIS TOOL IS USED BY
MORE THAN 900 PUBLISHERS AROUND
THE WORLD AND SUPPORTS THEIR
EFFORTS TO CONNECT WITH MORE
THAN 900,000 NEW PAID
SUBSCRIBERS. OUR LICENSING
PROGRAM AND PRODUCT EXPERIENCE
FOR NEWS ORGANIZATIONS. GOOGLE
NEWS SHOWCASE OPERATES IN 24
COUNTRIES. AND HAS MORE THAN
2500 PARTICIPATING PUBLICATIONS.
IN THE US IN THE UNITED STATES.
WE'VE SIGNED A SIGNIFICANT
NUMBER OF PUBLICATIONS ACROSS 42
STATES OVER 95% OF WHICH ARE
LOCAL PUBLISHERS. WE ALSO OFFER
TOOLS AND SERVICES TO HELP NEWS
PUBLISHERS GENERATE INCOME FROM
THEIR CONTENT. PUBLISHERS CAN
AFTER USE GOOGLE'S ADVERTISING
TECHNOLOGY AS WELL AS THE
TECHNOLOGY OF OTHERS TO SELL ADS
ON THEIR WEBSITES AND APPS TO
ADVERTISERS. UNDER THESE
AGREEMENTS, PUBLISHERS RETAIN
THE VAST MAJORITY OF THE DIGITAL
ADVERTISING REVENUE. UP TO 95%
FOR THE LARGEST PUBLISHERS. WE
CONTINUE TO COLLABORATE WITH THE
NEWS INDUSTRY TO HELP TACKLE NEW
OPPORTUNITIES POSED BY THE EVER
CHANGING DIGITAL ENVIRONMENT. TO
THE GOOGLE NEWS INITIATIVE.
WE'VE PARTNERED WITH MORE THAN
7000 NEWS PUBLISHERS AROUND THE
WORLD, INCLUDING 200 NEWS
ORGANIZATIONS AND 6000
JOURNALISTS IN CALIFORNIA ALONE.
THE G N I PROVIDES TRAINING
TOOLS AND FUNDING TO JOURNALISTS
AND NEWSROOMS HELP STRENGTHEN
THEIR WORK IN OUR DIGITAL AGE.
THIS YEAR, THE GOOGLE NEWS
INITIATIVE LAUNCHED PARTNERSHIPS
WITH FIVE LOCAL NEWS
ASSOCIATIONS IN THE UNITED
STATES, PROVIDING FINANCIAL
GRANTS IN TRAINING TO NEARLY
1000 LOCAL PUBLICATIONS. THIS
FUNDING HELPED LOCAL PUBLISHERS
OVERCOME TECH CHALLENGES AND
CREATE STRATEGIES FOR GROWING
AUDIENCES AND DRIVING REVENUE.
JUST LAST WEEK. THE DEFUNDED KQ
EADS PILOT TOOL TO HELP LOCAL
PUBLISHERS ACROSS CALIFORNIA
GREW AUDIENCES AND REVENUE
OPPORTUNITIES. IT'S PART OF THE
G ANY. WE ALSO CREATED THE LOCAL
NEWS EXPERIMENTS PROJECT, WHICH
AIMS TO CREATE SUSTAINABLE ALL
DIGITAL NEWS ORGANIZATIONS IN
COMMUNITIES CURRENTLY
UNDISTURBED BY LOCAL NEWS.
RECENTLY THE GENIE PROVIDED
FUNDING TO TWO LOCAL NONPROFIT
NEWS OUTLETS, THE OAKLAND SIDE
AND RICHMOND SIDE BOTH PARTS OF
CITY SIDE, WHOSE MISSION IS TO
PRODUCE TRUSTED AND INDEPENDENT
LOCAL JOURNALISM. DESPITE THIS,
WE OFTEN HEAR THAT OUR
PERSPECTIVE ON REGULATORY
EFFORTS TO PROMOTE THE
PUBLISHING INDUSTRY REFLECTED
GENERAL OPPOSITION TO REGULATION
OF ANY KIND. THIS IS NOT TRUE.
WE SHARE THE GOAL OF
STRENGTHENING THE NEWS ECOSYSTEM
IN CALIFORNIA. HOWEVER PROPOSALS
THAT INSTITUTE OF LINK TAX LIKE
WE'VE SEEN IN OTHER
JURISDICTIONS WILL NOT ACHIEVE
THIS GOAL. INSTEAD THEY WOULD
DECENTRALIZED PROGRAM PLATFORMS
FROM SENDING TRAFFIC TO NEWS
PUBLISHERS AND MAKE IT HARDER
FOR US TO DIRECT USERS TO
HELPFUL CONTENT AND TO COMBAT
MISINFORMATION. BELIEVE
COLLABORATIVE APPROACHES LIKE
GOOGLE NEWS SHOWCASE NOT ONLY
BUILD TRUST BETWEEN TECH
COMPANIES AND NEWS PUBLISHERS,
BUT RESPECT THE BASIC LINK
FRAMEWORK OF THE OPEN INTERNET
AND THE TREMENDOUS SOCIETAL
BENEFITS IT HAS ENABLED. FURTHER
THESE APPROACHES SUPPORT THE
DIGITAL TRANSFORMATION AND LONG
TERM COMMERCIAL SUSTAINABILITY
OF LOCAL NEWS ME TO SUMMARIZE
THE KEY POINTS. GOOGLE DRIVES A
MASSIVE AMOUNT OF VALUABLE
TRAFFIC TO PUBLISHERS AT NO
COST. WHICH THEY USED TO GROW
THEIR BUSINESSES. THE DISRUPTION
OF THE NEWSPAPER BUSINESS MODEL
WAS THE RESULT OF THE
COMPETITIVE DYNAMIC OF THE
INTERNET. WITH ITS VAST ARRAY OF
CONTENT SOURCES AND NEW
OPPORTUNITIES FOR ADVERTISERS.
LINK TAX AS PROVEN ELSEWHERE
WOULD BE COUNTERPRODUCTIVE.
MAKING IT MORE DIFFICULT FOR
USERS TO FIND DIVERSE SOURCES OF
NEWS, REDUCING THE OPPORTUNITY
FOR NEWS PUBLISHERS TO BUILD NEW
AUDIENCES AND MAKING IT HARDER
FOR GOOGLE TO DIRECT USERS TO
HELPFUL CONTENT CONTENT. GOOGLE
IS ALREADY PROVIDING TREMENDOUS
VALUE TO NEWS PUBLISHERS, AND
THERE'S ROLLED OUT PROGRAMS IN
THE UNITED STATES LIKE GOOGLE
NEWS SHOWCASE, WHICH IS THE SAME
PROGRAM THAT UNDERPINS OUR
COMMERCIAL AGREEMENTS WITH
PUBLISHERS IN OTHER COUNTRIES,
INCLUDING AUSTRALIA. GOOGLE HAS
COMMITTED TO ENABLING A
SUSTAINABLE FUTURE FOR NEWS IN
CALIFORNIA. AND ACROSS THE
COUNTRY. AS BOTH A FORMER
PUBLISHER AND A PROUD
CALIFORNIAN. I AM COMMITTED TO A
SUSTAINABLE FUTURE FOR NEWS IN
CALIFORNIA AND ACROSS THE
COUNTRY. I APPRECIATE ASSEMBLY
MEMBER WICKS AND CHAIR HAMBURG'S
EFFORTS. TO WORK AND LISTEN TO
STAKEHOLDERS. WE WANT TO WORK
TOGETHER TO FIND A PATH FORWARD
THAT SUPPORTS CALIFORNIA NEWS
PUBLISHERS, ESPECIALLY LOCAL
PUBLISHERS, PROVIDING LOCAL
COVERAGE TO THEIR COMMUNITIES
AND HELPS CONNECTS CALIFORNIANS
WITH THE INFORMATION THEY NEED
TO UNDERSTAND THE WORLD AROUND
THEM. I THANK YOU. HE DOES
ALRIGHT. NEXT, MR LANCE, NORMAL.
CHAIR AMBERG SENATORS ASSEMBLY
MEMBER WICK WICKS. GOOD
AFTERNOON. I'M THE CEO AND CO
FOUNDER OF CITY SIDE JOURNALISM
INITIATIVE, A NONPROFIT NEWS
ORGANIZATION PROVIDING LOCAL
JOURNALISM TO CITIES IN THE BAY
AREA. IT'S MY PLEASURE TO SPEAK
TO THE COMMITTEE TODAY ABOUT
SOME OF THE ISSUES FACING LOCAL
JOURNALISM. TOGETHER WITH TWO
OTHER JOURNALISTS. I FOUNDED THE
DIGITAL LOCAL NEWS SITE BERKELEY
SIDE 14 YEARS AGO BECAUSE WE SAW
THAT MOST OF WHAT WAS HAPPENING
IN OUR CITY WAS NOT BEING
COVERED. IT WAS RARE FOR
REPORTED TO BE AT THE CITY
COUNCIL EVEN RARER FOR ONE TO
ATTEND THE SCHOOL BOARD. AND
PLANNING DISPUTES, COMMUNITY
EVENTS, BUSINESS OPENINGS AND
CLOSINGS. TOWN GOWN TUSSLES WERE
OCCURRING IN A NEAR NEWS VOID.
BEING DIGITAL FROM THE START
HELPED US IN NUMEROUS WAYS FIRST
, WE DON'T BEAR THE COSTS OF
PAPER PRINTING AND DISTRIBUTION.
SECOND WE CAN RESPOND INSTANTLY
TO BREAKING NEWS. IT'S
UNTHINKABLE TODAY THAT PEOPLE
WOULD HAVE TO WAIT UNTIL MORNING
OR FOR WEEKLY NEWSPAPERS UNTIL
THAT WEEKLY PUBLICATION COMES
OUT TO FIND OUT WHAT'S
HAPPENING. WE'VE ALSO HAD THE
ADVANTAGE OF BEING DIGITAL NEWS
NATIVES FROM THE START. MOST
LEGACY NEWS ORGANIZATIONS HAVE
HAD TO MANAGE ENORMOUS INTERNAL
CULTURAL CHANGE TO ADAPT TO A
DIGITAL WORLD. ALMOST ALL EXPECT
TO ABANDON PRINT IN THE NOT TOO
DISTANT FUTURE. THREE YEARS AGO,
WE BUILT ON OUR DECADES OF
EXPERIENCE WITH BERKELEY SIDE
AND LAUNCHED AN EVEN MORE
AMBITIOUS NEWS OPERATION OAKLAND
SIDE SINCE THE CLOSING OF THE
OAKLAND TRIBUNE IN 2016.
CALIFORNIA'S EIGHTH LARGEST CITY
WAS WOEFULLY UNDER COVERED. NOW
OUR NEWSROOM WITH 12, EDITORS
AND REPORTERS, IS EASILY THE
LARGEST IN THE CITY. WE COVER
THE STAPLES OF DAILY JOURNALISM,
CITY HALL. SCHOOLS ARTS HOUSING
LOCAL BUSINESS AS WELL AS DEEPER
DIVES INTO ISSUES LIKE ROAD
SAFETY. POLICE REFORM, THE
ACHIEVEMENT GAP IN SCHOOLS AND
MORE. ALL OF OUR CONTENT IS FREE
TO READ. WE BELIEVE THAT IT'S
PROBABLY MORE IMPORTANT THAT
SOMEONE WHO'S HOUSING INSECURE
HAS ACCESS TO POLICY DEBATES IN
CITY HALL THAN A WEALTHY
HOMEOWNER IN THE HILLS. LIKE
YOUR LOCAL PUBLIC RADIO STATION.
WE DON'T MAKE PEOPLE PAY FOR THE
NEWS, BUT WE ALLOW THEM TO PAY
FOR THE NEWS THROUGH DONATIONS
TO OUR NONPROFIT ORGANIZATION.
BETWEEN OAKLAND AND BERKELEY.
NEARLY 8000. OUR READERS DO
DONATE. WE ALSO CULTIVATE MAJOR
GIFTS, GET FOUNDATION SUPPORT
AND GET ADVERTISING AND
SPONSORSHIP FROM LOCAL AND
REGIONAL BUSINESSES. IN A
TYPICAL MONTH, BERKELEY SIDE
REACHES OVER 300,000 USERS
OAKLAND SIDE AFTER ONLY THREE
YEARS REACHES 250,000 USERS A
MONTH. OUR NEWSLETTERS GO TO
OVER 50,000 READERS DAILY. ARE
TWO SITES PUBLISHED OVER 1500
NEW STORIES A YEAR. IT'S A MODEL
THAT'S BEEN WIDELY IMITATED
NATIONALLY, WITH RECENT LAUNCHES
LIKE SIGNAL, CLEVELAND, HOUSTON
LANDING AND INDIANA FREE PRESS.
MORE AND MORE PLACES ARE
UNDERSTANDING HOW LOCAL
JOURNALISM IS A VITAL PART OF
OUR CIVIC AND DEMOCRATIC
INFRASTRUCTURE. SOCIAL SCIENCE
RESEARCH HAS SHOWN THAT THE
ABSENCE OF LOCAL JOURNALISM
VOTING RATES DECLINE. CORRUPTION
GOES UP. BOND RATES GO UP
MISINFORMATION THRIVES. WE'RE
DETERMINED TO CONTINUE TO PLAY
OUR PART IN BUILDING A HEALTHY
FUTURE FOR LOCAL NEWS, SO WE'RE
EXPANDING. WE RECENTLY ANNOUNCED
OUR THIRD NEWSROOM RICHMOND
SIDE. LOCAL INDEPENDENT
JOURNALISM THAT MATTERS FOR OUR
COMMUNITIES IS AT THE HEART OF
OUR MISSION. BUT IF OUR WORK IS
TO HAVE ANY IMPACT, WE NEED
RESIDENTS OF OUR CITIES TO
BECOME READERS. I THINK IT'S
IMPORTANT FOR THE SENATORS ON
THIS COMMITTEE TO UNDERSTAND HOW
PROFOUNDLY THE TOOLS WE HAVE WE
USE TO WIN, NEW READERS HAVE
CHANGED IN A HANDFUL OF YEARS.
WHEN WE LAUNCHED OAKLAND SIDE IN
2020. FACEBOOK IN PARTICULAR WAS
A POWERFUL PLATFORM FOR WHAT WE
CALL DISCOVERY. THROUGH BOTH
ORGANIC AND PAID POSTS ON
FACEBOOK. WE WERE ABLE TO REACH
A LARGE NUMBER OF OAKLAND EAR'S
TO TELL THEM ABOUT, SAY OUR
COVERAGE OF CITY COUNCIL RACES
OR DETAILED TRACKING OF LOCAL
COVID STATISTICS. THAT ALLOWED
US WITH A MODEST BUDGET TO BUILD
A STRONG AUDIENCE FOR OAKLAND
SIDE BY THE END OF OUR FIRST
YEAR. THAT AUDIENCE HELP THEIR
REPORT REPORTING HAVE GREATER
IMPACT, CERTAINLY, BUT IT ALSO
ENABLED US TO GET ON A PATH TO
SUSTAINABILITY. THOSE READERS
BECOME SMALL DOLLAR DONORS, A
FEW BECOME MAJOR SUPPORTERS.
LOCAL BUSINESSES WANT TO
ADVERTISE TO REACH OUR READERS
AND BEING ABLE TO DEMONSTRATE
OUR HEALTHY REACH INTO OUR
COMMUNITY CONVINCES FOUNDATIONS
THAT ARE WORK DESERVES BACKING.
AS WE'RE NOW PLANNING THE LAUNCH
OF RICHMOND SIDE, I HAVE TO TELL
YOU THAT FACEBOOK DOESN'T FIGURE
IN OUR PLANS AT ALL. A CHANGE IN
THE FACEBOOK ALGORITHM TO DE
EMPHASIZE NEWS MEANS THAT IT NO
LONGER SERVES AS A GOOD PLATFORM
FOR DISCOVERY OF OUR WORK. OTHER
SOCIAL NETWORKS, THE FORMER
TWITTER SNAPCHAT TIKTOK THREADS,
INSTAGRAM. HAVE AT TIMES BEEN
GOOD FOR ENGAGING OUR AUDIENCES,
BUT AT BEST, THEY GENERATE A
MINOR TRICKLE OF TRAFFIC TO OUR
SITES. SO WHAT DO WE DO? MORE
THAN ANYTHING. THE ANSWER IS
SEARCH. AND OAKLAND SIDE IN
BERKELEY SIDE ONE THIRD OF OUR
READERS FIND US THROUGH SEARCH.
IF YOU SEARCH OAKLAND SCHOOL
BOARD OR BERKELEY CITY COUNCIL,
OR BERKELEY MAYOR RACE, YOU'RE
LIKELY TO END UP ON OUR NEW
SITES. SO FAR FROM FINDING THE
TECH PLATFORMS A THREAT. WE SEE
THEM AS ESSENTIAL TO OUR
EXISTENCE. WE HAVE ALSO
BENEFITED DIRECTLY FROM THE
SUPPORT OF THE GOOGLE NEWS
INITIATIVE, WHICH, TOGETHER WITH
SOME NATIONAL FOUNDATIONS
PROVIDED THE LAUNCH FUNDING FOR
OAKLAND SIDE AND NOW THEY'RE
HELPING WITH RICHMOND SIDE.
TOTAL PHILANTHROPIC FUNDING FOR
JOURNALISM IN THIS COUNTRY IS
AROUND $150 MILLION A YEAR. SOME
I UNDERSTAND IS ABOUT EQUAL TO
THE SUPPORT FOR BALLET COMPANIES
NATIONALLY. A RECENT DRIVE BY
SOME MAJOR FOUNDATIONS LOOKS SET
TO RAISE THAT FUNDING PERHAPS
250 MILLION A YEAR. BUT RECENT
RESEARCH BY MEDIA CONSULTANTS
NEIL ZUCKERMAN AND NATHAN MAIKON
ESTIMATES THE COST OF SUSTAINING
LOCAL NEWS IS SOMEWHERE BETWEEN
750 MILLION AND $1.75 BILLION
ANNUALLY. SO WE'RE A LONG WAY
SHORT OF WHAT'S NEEDED. WE TRULY
CAN'T AFFORD TO LOSE THE SUPPORT
OF VENTURES LIKE THE GMI. I KNOW
THERE'S A LOT OF DOOM AND GLOOM
ABOUT LOCAL NEWS. YOU'VE HEARD
PLENTY OF STATISTICS TODAY. BUT
ON THE BASIS OF OUR EXPERIENCE,
I'M OPTIMISTIC ABOUT THE FUTURE
IF WE CAN CONTINUE TO RELY ON AN
OPEN FREE INTERNET CALIFORNIA IS
I'M HAPPY TO REPORT A HOT SPOT
FOR OUR KIND OF INNOVATION.
THEIR ENTERPRISING NONPROFIT
ENTREPRENEURS IN MANY PARTS OF
THE STATES OF THE STATE THERE
ABOUT 60 NONPROFIT NEWS
ORGANIZATIONS IN CALIFORNIA,
EMPLOYING OVER 700 JOURNALISTS
AND OTHER STAFF. I'M HEARTENED
THAT OUR STATE LEGISLATURE HAS
RECOGNIZED BOTH THE IMPORTANCE
OF LOCAL JOURNALISM, AND IT'S
EXPLORING WAYS TO HELP IT. I
HOPE YOUR WORK HELPS YOU FIND
WAYS TO SUPPORT THE JOURNALISM
THAT TRULY MATTERS IN CALIFORNIA
COMMUNITIES, AND I HOPE YOU'LL
START BY CONSIDERING HOW
CALIFORNIANS CAN GET THE
INFORMATION THEY NEED. NOT BY
CONSIDERING WHAT PUBLISHERS WANT
OR NEED. THANK YOU FOR YOUR
LEADERSHIP IN TACKLING THIS KEY
ISSUE FOR A DEMOCRATIC SOCIETY.
ALRIGHT THANK YOU, MR NOBLE NEXT
PRESIDENT MATT PEARCE OF THE
MEDIA GUILT OF THE WEST. PIERCE.
LET ME LET ME JUST ASK POSSIBLE
WITNESSES, UM, TO IDENTIFY
THEMSELVES BEFORE THEY BEGIN.
EXCELLENT. THANK YOU. GOOD
AFTERNOON. SENATORS MY NAME IS
MATT PEARCE IN MY DAY JOB AS A
REPORTER FOR THE LOS ANGELES
TIMES FOR THE PAST DECADE, BUT
I'M HEARING HERE IN MY CAPACITY
AS PRESIDENT OF THE MEDIA GUILT
AT THE WEST FOR LOCAL UNION OF
THE NEW SKILLED CW WAY THAT WAS
FOUNDED IN 2018. I REPRESENT
ABOUT 1000 WORKING JOURNALISTS,
INCLUDING THE L A TIMES, DAILY
NEWS, ORANGE COUNTY REGISTER
DESERT SUN AND SOME OTHER MAJOR
NEWSROOMS IN ARIZONA AND TEXAS.
LOT OF NEWS THAT CALIFORNIANS
READ EVERY DAY IS PRODUCED BY
NEW SKILLED JOURNALISTS, DOZENS
OF PUBLICATIONS AND IN FACT, IN
BRANDON'S PRESENTATION, HE
SHOWED GOOGLE AND IT'S SLIDING
DOWN THE LIST OF PUBLICATIONS
THAT GOOGLE SITES SORT OF. MOST
OF THAT WORK ON THE SCREEN IS
PRODUCED BY NEWS KILLED
JOURNALISTS. WE'RE ALSO PART OF
THE COMMUNICATION WORKERS OF
AMERICA DISTRICT NINE, WHICH
INCLUDES GOOGLE EMPLOYEES AT THE
NEW ALPHABET WORKERS UNION,
LOCAL 9009. BEFORE I START. I
WANT TO EXPRESS MY GRATITUDE TO
THIS COMMITTEE FOR INVITING ME
TO SPEAK OUT OF THE MANY
EXCELLENT ADVOCATES AND EXPERTS
APPEARING TATE TO DEATH TODAY TO
TESTIFY ABOUT JOURNALISM. I
APPEAR TO BE THE ONLY SPEAKER
FROM THE LABOR UNION THAT
REPRESENTS THE INTERESTS OF
JOURNALISTS, RATHER THAN
PUBLISHERS OR ANOTHER GROUP. NO
ONE'S PAID ME TO BE HERE, BY THE
WAY. UM EARLIER THIS YEAR, MY
LOCALS RANK AND FILE MEMBERS
VOTED UNANIMOUSLY TO SUPPORT THE
CALIFORNIA JOURNALISM
PRESERVATION ACT. WHICH IS NOW
ALSO SUPPORTED BY THE
COMMUNICATIONS WORKERS OF
AMERICA, CALIFORNIA LABOR
FEDERATION. OTHER UNIONS
REPRESENTING MEDIA WORKERS LIKE
TO THANK ASSEMBLY MEMBER WICKS
FOR HER CAREFUL CONSIDERATION OF
LABOR'S CONCERNS ON THIS BILL.
WE THINK THE DIGITAL ADVERTISING
MARKET IS BROKEN AND JOURNALIST
WILL NEVER BE ABLE TO
COLLECTIVELY BARGAIN WITH
PUBLISHERS FOR PAY THAT REFLECTS
ARE WORTH THE BIG TECH IS
CAPTURING AN UNFAIR SHARE OF THE
VALUE THAT OUR JOURNALISM
CREATES. BUT TODAY COMMITTEE
STAFF HAS ASKED ME TO TESTIFY
ABOUT ARTIFICIAL INTELLIGENCE
AND JOURNALISM. WHICH IS ANOTHER
AREA WHERE POWERFUL TECH
COMPANIES ONCE AGAIN WENT TO
SCRAPE AND PROFIT FROM OUR
JOURNALISM WITHOUT PAYING FOR
IT. I'M SURE YOU'VE ALREADY
HEARD CONCERNS FROM MY
COUNTERPARTS AT SAG AFTRA AND
THE WRITERS GUILD OF AMERICA.
JOURNALISTS HAVE SIMILAR BUT
UNIQUE CONCERNS ABOUT THIS
TECHNOLOGY AND THE NEGATIVE
IMPACT IT COULD HAVE IF DEPLOYED
POORLY. UM IT'S QUICK BACKGROUND
. THE REASON WE'RE TALKING ABOUT
A I THESE DAYS BECAUSE OF THE
RISE OF WHAT ARE CALLED
GENERATIVE AI MODELS LIKE CHAT.
GPT CAN QUICKLY PRODUCE
SYNTHETIC TAX VISUALS OR AUDIO
THAT SEEM AUTHENTIC AND HUMAN
MADE. THE WAY THAT THESE MODELS
WORK AS THEY INGEST HUGE AMOUNTS
OF DATA COULD BE NEWSPAPER
STORIES, SPEECHES, BOOKS OR
PAINTINGS. AND THEN THESE MODELS
STUDY THAT DATA FOR PATTERNS AND
I COULD HAVE ASKED CHAD SHOULD
BE T TO PRODUCE ABOUT 10 MINUTES
WORTH OF SENATE TESTIMONY ABOUT
A I IN JOURNALISM AND WITHIN
JUST A FEW SECONDS THAT COULD
HAVE PRODUCED SOMETHING THAT
SOUNDS A LOT LIKE SENATE
TESTIMONY ABOUT A I AND
JOURNALISM. IT'S JUST FANCY TEXT
PREDICTION. I WROTE EVERY WORD
OF THIS, BY THE WAY. AH, UM
UNLIKE PREVIOUS VERSIONS OF
MACHINE LEARNING, GENERATIVE AI
TODAY HAS AN AMAZING BREADTH OF
POTENTIAL ECONOMIC APPLICATIONS.
THAT'S THE BIG REVOLUTION. BUT
THIS TECHNOLOGY DOES NOT BENEFIT
EVERYONE. EQUALLY ACTORS ARE
CONCERNED THAT IF STUDIOS SCAN
THEIR VOICES, FACES AND BODIES,
THEY'VE GIVEN AWAY THEIR
LIVELIHOODS FOREVER. FOR WRITERS
. IF YOU EVER SEEN SHOWS LIKE
FRIENDS OR FRASIER, YOU KNOW
THAT A LOT OF SCREENWRITING
WORKS WITH CREATIVE FORMULAS
THAT THESE MODELS COULD COPY AND
IMITATE FASTER AND MUCH MORE
CHEAPLY. THE UNSETTLED QUESTION
OF HOW HOLLYWOOD TO USE A I AS
ONE OF THE REASONS WHY WE SAW A
COUPLE OF THE LONGEST STRIKES IN
HOLLYWOOD'S HISTORY. UM
JOURNALISM IS A LITTLE DIFFERENT
FROM CREATIVE INDUSTRIES AND
THAT WERE PURELY A FACT BASED
PROFESSION. GENERATIVE AI MODELS
FAMOUSLY POLLUTION EIGHT AND
STRUGGLE WITH ACCURACY. IF WE
ASK WHAT'S TWO PLUS TWO
GENERATIVE AI MODEL COULD ANSWER
FIVE. THAT'S BECAUSE OF HOW
THEY'RE BUILT. GENERATIVE AI
MODELS AREN'T BUILT TO THINK OR
REASON LIKE A PERSON DOES THEIR
STATISTICAL GUESSING MACHINES,
THEN JOURNALISM YOU I CAN'T
GUESS, UM. IF I LEAVE THIS
HEARING TO GO RIGHT FRONT PAGE
STORY FOR THE L A TIMES ABOUT
ISRAEL AND GAZA, I HAVE TO BE
ABLE TO EXPLAIN EVERY SINGLE
WORD THAT I USE EVERY SOURCE
THAT I CITE AND WHY I MADE THOSE
CHOICES AS A JOURNALIST, AND IF
I GET SOMETHING WRONG IF I MAKE
AN ERROR OF FACT OR AN ERROR OF
JUDGMENT AND ULTIMATELY
ACCOUNTABLE TO MY EDITORS, AND
I'M ACCOUNTABLE TO MY READERS,
I'M A HUMAN BEING. EVERYBODY
KNOWS HOW TO REACH ME. BUT
GENERATIVE AI MODELS ARE BLACK
BOXES. WE JUST DON'T KNOW WHAT'S
GOING ON IN THERE. THE MODEL
MIGHT BE TRAINED ON BIASED OR
INCOMPLETE OR EVEN FABRICATED
DATA. WE WOULDN'T KNOW. WE DON'T
KNOW HOW THE MODEL CHOOSES THE
WORD THAT IT CHOOSES. THE
MACHINE WILL NEVER FEEL THE NOT
EVERY JOURNALIST GETS IN THEIR
STOMACH WHEN THEY GET THE FACTS
WRONG. MACHINE WILL NEVER FEEL
BAD ABOUT LIBELING A HUMAN
BEING. THIS IS WHAT WE CALL AN
ALIGNMENT PROBLEM. UNFORTUNATELY
OUR GUILD HAS STRONG CONCERNS
ABOUT THE DESTRUCTIVE, CARELESS
AND BORDERLINE FRAUDULENT WAYS
THAT GENERATIVE AI HAS ALREADY
BEEN DEPLOYED IN OUR OWN
INDUSTRY, AND I'LL GIVE A FEW
EXAMPLES WHEN I WAS GROWING UP
SPORTS ILLUSTRATED ONE OF THE
BEST MAGAZINES IN AMERICA, IT'S
FALLEN ON HARD TIMES. LAST WEEK,
SPORTS ILLUSTRATED GOT CAUGHT
USING AI GENERATED AUTHORS WHO
DON'T EXIST. WE'RE TALKING FAKE
WRITERS. FAKE PORTRAITS, FAKE
AUTHOR BIOGRAPHIES. THERE ARE
VERY REAL AND VERY HUMAN
JOURNALISTS WHO STILL WORK FOR
SPORTS ILLUSTRATED. THEY'RE
UNIONIZED WITH THE NEWS GUILD
INTO THEIR EMPLOYER, THEY
RESPONDED. QUOTE THESE PRACTICES
VIOLATE EVERYTHING WE BELIEVE IN
ABOUT JOURNALISM. WE DEPLORE
BEING ASSOCIATED WITH SOMETHING
SO DISRESPECTFUL TO OUR READERS.
LET'S TAKE A NET, WHICH IS NOW
ONE OF THE LARGEST OWNERS OF
NEWSPAPERS IN AMERICA TWO MONTHS
AGO, THE USA TODAY ON
PUBLICATION CALLED REVIEWED GOT
CAUGHT USING AUTHORS WITH NAMES,
PICTURES AND BIOGRAPHIES WHO
DON'T EXIST ANYWHERE ELSE ON THE
INTERNET. IT'S HUMAN JOURNALISTS
, ALSO UNIONIZED WITH THE NEWS.
GUILT RESPONDED, AND I QUOTE
GANNETT SAY I POSTS ARE A
VIOLATION OF REVIEWS OWN ETHICS
POLICY. THEY PUT MONEY OVER
EDITORIAL INTEGRITY NOR BETRAYAL
, NOT JUST WORKERS, BUT OF
READERS WHO COUNT ON THE SITE
FOR CONSUMER REVIEWS THEY CAN
TRUST. I CAN GO ON THREE MONTHS
AGO, MICROSOFT NEWS AGGREGATION
SITE MSN PUBLISHED AN AI WRITTEN
OBITUARY FOR FORMER NBA PLAYER
BRANDON HUNTER WITH THE HEADLINE
QUOTE BRANDON HUNTER USELESS AT
42. AH THIS TIME, MSN'S
JOURNALISTS DIDN'T HAVE ANYTHING
TO SAY. MAYBE THAT'S BECAUSE MSN
REPORTEDLY LAID OFF ITS
JOURNALISTS IN 2020 REPLACED
THEM WITH A I SO WHAT THESE
DISASTERS HAVE CLEARLY
DEMONSTRATED IS THAT THERE'S NO
SUCH THING AS JOURNALISM WITHOUT
JOURNALISTS WASN'T TRUST AND
SAFETY TEAMS IN SILICON VALLEY
THAT EXPOSED OR PREVENTED THESE
ABUSES ON THE FRONT END. IT WAS
JOURNALISTS WHO BLEW THE WHISTLE
ON UNETHICAL AI PUBLISHING
PRACTICES EITHER FROM INSIDE
THEIR OWN COMPANY. OTHER
PUBLICATIONS. MY PARENT UNION.
THE NEWS GUILD RECENTLY
CONDUCTED A NATIONAL SURVEY OF
NEWS GUILD MEMBERS. THE MAJORITY
SAID THEY HAD LITTLE TO NO FAITH
IN THEIR EMPLOYER TO USE A I
RESPONSIBLY AND ETHICALLY, MOST
MEMBERS THINK GENERATIVE AI IS
LIKELY TO MAKE OUR LIVES WORSE
INSTEAD OF BETTER. 90% OF
RESPONDING MEMBERS SAID THAT OUR
UNIONS HAVE A STRONG
RESPONSIBILITY TO ENFORCE
ETHICAL AND RESPONSIBLE USE OF
AI. NOW I DO WANT TO BE CLEAR
ABOUT SOMETHING. WE ARE ANTI
TECH NEW SKILLS MEMBERS INCLUDE
CODERS AND ENGINEERS WHO ARE
CRITICAL TO MODERN JOURNALISM
SUCCESS OVER THE CENTURIES.
JOURNALISTS JUST LIKE ME HAVE
ALWAYS ADAPTED TECHNOLOGY AND
EXPLORED NEW WAYS TO CONNECT
WITH OUR COMMUNITIES AND SUPPORT
OUR DEMOCRACY. THINK ABOUT THE
RISE OF THE TELEGRAPH AND THE
WIRE SERVICES, STEAM PRESS AND
PENNY PAPERS BROADCAST RADIO
TELEVISION THE PC THE
SMARTPHONE. THESE WERE HARDWARE
REVOLUTIONS THAT CHANGED. OUR
JOURNALISM WAS PRODUCED AND
DELIVERED. EACH ADVANCE MEANT
THE NEWS COULD MOVE FASTER AND
REACH MORE OF THE PUBLIC THAN
BEFORE. ARGUABLY THE BIGGER
STORY FOR LOCAL JOURNALISM OVER
THE PAST 20 YEARS OF THE
SOFTWARE REVOLUTIONS THAT HAVE
HAD JUST AS DRAMATIC AN IMPACT.
THEY INCLUDE THE SEARCH ENGINE,
SOCIAL MEDIA SURVEILLANCE BASED
DIGITAL ADVERTISING. AND I DON'T
THINK IT'S A COINCIDENCE. THE
LAST 20 YEARS HAVE SEEN A
MASSIVE SHIFT IN THE BALANCE OF
POWER FROM PUBLISHERS TO MASSIVE
TECH COMPANIES THAT ARE FAR LESS
INVESTED IN JOURNALISM SURVIVAL.
THE QUESTION TODAY IS WHETHER
GENERATIVE, A EYES AND OTHER
SOFTWARE REVOLUTION IS GOING TO
TRANSFORM JOURNALISM AND WHETHER
IT'S POSSIBLE TO DO SO FOR THE
BETTER RIGHT NOW. THE REALITY IS
THAT GENERATIVE AI IS MOVING US
TOWARD A WORLD WHERE THE COST OF
PRODUCING PROPAGANDA THE COST OF
PRODUCING FABRICATED CONTENT.
THE COST OF PRODUCING LIES IS
FALLING CLOSE TO ZERO. OUR VIEW.
IS THAT WELL, LOCAL JOURNALISM
NEEDS RIGHT NOW IS MORE
JOURNALISTS. HUMAN JOURNALISTS
ARE THE FIRST LAST AND STILL THE
BEST LINE OF DEFENSE AGAINST THE
VAST WASTELAND OF GARBAGE THAT'S
ALREADY COMING RIGHT AT US.
THAT'S WHY WE SUPPORT THE
CALIFORNIA JOURNALISM
PRESERVATION ACT AND ITS
REQUIREMENT THAT 70% OF REVENUES
GO TOWARD PAYROLL. THERE'S
LITTLE POINT IN CRAFTING
JOURNALISM POLICY THAT DOESN'T
SUPPORT THE HIRING AND
EMPLOYMENT OF JOURNALISTS IN THE
FUTURE. OUR GUILD IS LIKELY TO
TAKE A TOUGHER STANCE AND POLICY
IDEAS THAT EITHER ENABLED TECH
GIANTS OR UNETHICAL PUBLISHERS
TO UNDERCUT JOURNALISTS AND
PUBLISHERS WHO ARE TRYING TO
PRODUCE JOURNALISM. THE RIGHT
WAY. SO THANK YOU SO MUCH. THANK
YOU, MR PIERCE. NOW WE'RE GOING
TO TURN TO THE MEMBERS FOR
QUESTIONS OR COMMENTS. UM THE
CENTER ASKING. THANK YOU,
CHAIRMAN. I HAVE A COUPLE OF
QUESTIONS AND ONE FROM IT. FOR
THE RECORD. I THINK THE BALLET
AND ALL FORMS OF ART ALSO
PLAYER. CRITICAL ROLE IN OUR
COLLECTIVE COMMUNITY ENGAGEMENT.
ALSO HOPEFULLY UNDERFUNDED
SHIRT. AH ABOUT MY TWO QUESTIONS
ARE FOR YOU TWO GENTLEMEN, THOSE
SHOULD BE PRETTY EASY. BUT FIRST
ONE MR SINGER, COULD YOU JUST
TELL US WHAT THE FIRST OF ALL I
THOUGHT ON YOUR MAP. I SAW THREE
CALIFORNIA COUNTIES. BUT THEN IN
THE SECOND SIDE, YOU SAID FOR
CALIFORNIA COUNTIES, COULD YOU
TELL US WHAT THOSE COUNTIES ARE?
THAT YOU STATE AND HAVE NO NO
MEDIA OUTLETS. DON'T I CAN GET
THAT FOR YOU ON THE WEB AND TWO
SECONDS BUT I DON'T HAVE IN MY
NOTES. I'M SORRY. YEAH, SEARCH
THAT UP FOR US. MAYBE ONCE OKAY?
AND THEN, UH, OKAY, GREAT. AND
THEN, MR CRESCENT. QUICK
QUESTION FOR YOU. THE DATA THAT
YOU TALKED ABOUT YOU PUT UP THE
SCREEN THAT SHOWED THE
OPPORTUNITIES TO CLICK THROUGH.
AND OBVIOUSLY THE NATURAL. THE
BOTTOM, WHICH IS A STATEMENT IN
AND OF ITSELF. BUT DO YOU HAVE
ANY DATA ON HOW MANY PEOPLE
ACTUALLY QUIT THROUGH THE
PUBLISHER'S CONTENT AFTER
THEY'VE READ THAT'S VISIBLE. TO
THE THUMBNAIL PICTURE THAT YOU
DESCRIBED. THEY READ THE FIRST
PARAGRAPH. HOW MANY OF THEM
ACTUALLY CLICK THROUGH FROM THE
I DON'T HAVE THE SPECIFIC DATA
FOR DIFFERENT CATEGORIES. UM, I
BELIEVE THERE WAS SOME NUMBERS
IN THE SLIDES, POINTING FOR
PARTICULAR PARTS OF THE PAGE.
CLICK THROUGH RATES, WHICH TEND
TO BE THE LOWER AND LOWER BASED
ON HOW MUCH CONTENT GOOGLE PUTS
ON THE PAGE. SO FOR THOSE YOUR
RIGHT, SO I THINK THE MOST
EGREGIOUS EXAMPLE IN THE SLIDES
THAT I SHOWED WAS THE ONE WHERE
IT'S CALLED THE PEOPLE ALSO ASK
FEATURE WHERE ON PARTICULAR
QUESTIONS AND EXCERPTS THE
PORTION OF THE ARTICLE AND THEN
HIGHLIGHTS THE ANSWER TO USER'S
QUESTIONS IN THE ARTICLE,
ESSENTIALLY REPUBLISHING NOT
JUST A SNIPPET FOR THE ENTIRE
ARTICLE, BUT PARTICULAR PORTIONS
THAT ANSWER THAT QUESTION.
REALLY ONCE YOU GET THAT
INFORMATION, THERE'S NO NEED TO
CLICK THROUGH THAT. AND THEN
THOSE SITUATIONS THAT PUBLISHER
ISN'T GONNA GET ANY KIND OF
ADVERTISING REVENUE OR ANYTHING
OTHER THAN THE SMALL LINK AT THE
BOTTOM SHINE WHERE THE CONTENT
ACTUALLY CAME FROM. GREAT.
THAT'S ALL FOR ME. THANK YOU.
THE SINGER. I JUST DON'T KNOW IF
YOU'VE ANSWERED YOUR QUESTION,
THOUGH, SHE SAID. HOW MANY TIMES
ARE. TOO READERS CLICK TO IT.
THE REPRESENTATIVE FROM GOOGLE
ASSERTED THAT THAT THEY SEND
THEM QUOTE, I THINK, QUOTE
MASSIVE AMOUNTS OF TRAFFIC. SO
CAN YOU CLARIFY WHAT THAT MEANS?
IS HE WRONG? AND IF NOT WHAT YOU
KNOW. WHAT ARE THE FACTS SAY THE
TERM MASSIVE AMOUNTS TALKING
ABSOLUTE NUMBERS MAY BE TRUE. I
MEAN, GOOGLE HAS BILLIONS OF
USERS COMING TO ITS SITE EVERY
DAY IN TERMS OF THE RELATIVE
NUMBER OF USERS WHO GO TO ITS
SITE WHO THEN CLICK THROUGH TO A
LINK. UNFORTUNATELY, THAT DATA
IS OPAQUE TO US. UM, WE DON'T
NECESSARILY KNOW. WHEN A USER
GOES TO GOOGLE SEARCH RESULTS,
PAGE SEES THE PUBLISHER'S
CONTENT ON THAT PAGE AND THEN
DECIDES NOT TO CLICK THROUGH.
GOOGLE DOESN'T REPORT NON CLICKS
TO THE NEWS PUBLISHERS. SO YOU
CAN'T ASCERTAIN WHETHER THAT
TRAFFIC COMES FROM A GOOGLE
SEARCH. SO WHAT YOU'RE SAYING WE
CAN. WE CAN ASCERTAIN WHAT
PERCENTAGE OF THE PUBLISHERS
TRAFFIC COMES FROM GOOGLE SEARCH
THEY CAN'T ASCERTAIN WHAT
PERCENTAGE OF GOOGLE'S TRAFFIC
GOT IT? NO, NO, BUT I'M FOCUSED
ON THE CLAIM, I GUESS. UNDERLINE
IT IS THAT THEY'RE PROVIDING
LINKS CLICKS REVENUE. 222
JOURNALISTS, JOURNAL
PUBLICATIONS, RIGHT. AND ARE YOU
SAYING YOU'RE SAYING IT SAID
YES, WE DO GET SOME YOU KNOW HOW
MUCH COMES THAT WAY? HOW MUCH
COMES FROM GOOGLE? GOOGLE
SEARCH? YEAH WELL, I BELIEVE
THAT THE ANSWER IS THAT BECAUSE
GOOGLE IS CONSIDERED THE GATEWAY
TO THE WEB, IT'S THE DOMINANT
WAY THAT USERS FIND ANY KIND OF
CONTENT ONLINE THAT MOST
PUBLISHERS ARE RELIANT ON GOOGLE
NEWS FOR TRYING TO UNDERSTAND
WHETHER YOU CAN MONETIZE IT
BECAUSE THAT'S PART OF THE
QUESTION IS BEFORE ALL OF US
HERE. IS THAT ASSERTIONS ABOUT
THE BENEFITS? AND WE'RE GOING TO
DISCUSS POLICY OPTIONS THERE AND
IT SEEMS THAT FROM THE
REPRESENTATIVE GOOGLE, THEY FEEL
LIKE THEY'RE PROVIDING A LOT OF
REVENUE. WELL I WILL SAY THAT
WHEN A USER GOES TO SEARCH
RESULTS PAGE CONSUMES OUR
CONTENT. THEIR GOOGLE MONETIZE,
IS IT THE PUBLISHERS DON'T WHEN
THEY CLICK THROUGH TO THE
PUBLISHERS ACTUAL SITE AS GOOGLE
SAID THEY OFFERED TO TOOLS WHERE
GOOGLE OR PUBLISHERS CAN
MONETIZE THROUGH ADVERTISING.
NOW THE ADVERTISING MARKET IS
ALSO CONTROLLED BY GOOGLE, SO
THEY GET A LARGE PORTION OF THAT
REVENUE AS WELL. UM BUT
PUBLISHERS ULTIMATELY ONLY
MONETIZE THEIR OWN CONTENT. WHEN
YOU JUST GO TO GOOGLE SEARCH
RESULT PAGE ULTIMATELY DECIDED
TO CLICK THROUGH TO THE
PUBLISHER SITE AND THEN SEE
ADVERTISING THERE. ALRIGHT AND
I'LL CLOSE MY QUESTION WITH JUST
THIS OBSERVATION THAT PART OF
OUR CHALLENGE AND MAKING GOOD
PUBLIC POLICY ALREADY GET THE
FACTS. AND SO FOR ALL THE
PARTICIPANTS TODAY AND BEYOND.
YOU KNOW, WE WANT TO MAKE GOOD
CHOICES, SO WE'RE NOT TRYING TO
HAVE AN OBSCURE SPACE. WHERE ARE
WE ARE TALKING ABOUT REVENUE AND
BENEFIT AND THE MORE DETAILED WE
CAN GET ON THAT THE BETTER.
YEAH. I'D LIKE TO JUST ASK MR
GINGRICH AND I REALLY DO. DON'T
YOU THINK THAT THAT THEY OUGHT
TO GET AT LEAST SOMETHING FOR
THAT THE READERS USUALLY ASK. I
MEAN, I USE IT. I'M A REGULAR
USER OF GOOGLE. I REFER TO THAT
FUNCTION FREQUENTLY. WITHOUT
CLICKING THROUGH. ALL RIGHT.
ISN'T THERE. ISN'T THERE A
CREDIBLE CLAIM THAT THEY GOT TO
YOU MAY DISAGREE ON THE AMOUNT,
BUT BUT BUT SHOULDN'T THAT'S
THERE? THAT'S THEIR BREAD AND
BUTTER THAT THAT INFORMATION
THAT THOSE THOSE THOSE THOSE
EXCERPTS THAT ARE BEING UTILIZED
BY THE SEARCH ENGINE. ACTUALLY I
DON'T AGREE WITH THAT. I THINK
WE DO. SENATOR PROVIDE
SIGNIFICANT VALUE. FIRST OF ALL
EXECUTED SEARCH ON GOOGLE. IT'S
NOT CLEAR NECESSARILY. WHAT
OBJECTIVE LOOKING FOR NEWS ABOUT
THE TOPIC. THEY'RE LOOKING FOR
OTHER INFORMATION. AND SO, YES,
THEY SEE AN ARRAY OF BRUTALITY
MIGHT CHOOSE ONE OR TWO, BUT NOT
ALL SENSE. MUCH LIKE COMPARISON
STEP. LOOK AT THE NUMBER OF
TITLES. MAYBE YOU WOULD BUY ONE.
MAYBE YOU PROMISED A FEW AND
WALK AWAY AND BY NINE BUT THE
TRUTH IS, WE DO SEND AN IMMENSE
AMOUNT OF TRAFFIC, AS INDICATED
BY MR NOBLE. MOST PUBLISHERS SEE
ROUGHLY 30% OF THEIR INBOUND
TRAFFIC COMING FROM GOOGLE. AND
THAT HAS TREMENDOUS VALUE AND I
ALSO WANT TO CLARIFY, GIVEN HOW
MUCH OF A MARKET SHARE YOU GUYS
HAVE NO NO 30% OF THEIR INBOUND
TRAFFIC, RIGHT, ACTUALLY
OBJECTIVE AND I DON'T WANT TO
SPEAK. HIS OBJECTIVE IS TO GET
PEOPLE TO COME TO HIS SIGHTS
DIRECTLY. BUT THAT'S ACTUALLY A
VERY NUMBER IS YOU'RE PROVIDING
YOUR BREAD AND BUTTER RIGHT IS
GETTING A LOT OF EYEBALLS TO
HAVE A CREDIBLE PLACE FOR PEOPLE
TO DO. SEARCH TO FIND OUT
INFORMATION ABOUT ABOUT A
MASSIVE RANGE OF DIFFERENT
TOPICS AND YOU KNOW YOU ARE
TURNING TO THE HIGH CREDIBILITY
SOURCES OF REPRESENTED HERE BY
OUR BY OUR OKAY. BLUE CHIP NEWS
MEDIA. AND YOU KNOW, TAKING
ADVANTAGE YOU KNOW OF THEIR OF
THEIR JOURNALISM AND THEIR
CREDIBILITY TO HELP THE USER
EXPERIENCE. BETTER. YEAH I BET
BETTER INFORMATION GLEAMING
EXPERIENCE ON GOOGLE, WHICH
HELPS YOUR BRAND WHICH HELPS
YOUR USERS. YOU KNOW, I TOTALLY
UNDERSTAND YOU MAY QUIBBLE ABOUT
THE AMOUNT OF MONEY THAT OUGHT
TO BE USED TO COMPENSATE THE
NEWSPAPER PUBLISHERS AND
JOURNALISTS FOR THE USE OF THEIR
OF THEIR MATERIAL, BUT I AM
HAVING TROUBLE. YOU KNOW, I
MEAN, YOUR YOUR IDEA ABOUT THE
NEWSSTAND. IT'S SO DIFFERENT,
RIGHT? WHEN YOU GO TO THE
NEWSSTAND. YOU'RE JUST LOOKING
AT THE WIDE RANGE OF TOPICS THAT
ARE THAT ARE THAT ARE THAT ARE
PRESENTED TO YOU BY THE
NEWSPAPERS. IN THIS CASE THEY'RE
USING THE YOU'RE BASICALLY.
YOU'VE SEARCHED THEIR NEWSPAPERS
, RIGHT? YOU'VE SEARCHED THEIR
ARTICLES. TO PROVIDE A VERY
DIRECT AND RESPONSIVE. UH, PIECE
OF INFORMATION IN RESPONSE TO
THE USER'S QUERY. AND THAT'S THE
DIFFERENCE HERE. IT'S NOT JUST
THE KIND OF SCAN OF THE
HEADLINES IF YOU HAD IF YOU HAD
A GOOD NEWS SECTION, WHICH IS A
BUNCH OF HEADLINES, MAYBE THAT'D
BE ONE THING. BUT YOU'RE TALKING
ABOUT UH, ABOUT ABOUT YOU. YOU
YOU SKIP YOU, YOU YOU SCANNING
ALL OF THE NEWSPAPERS
INFORMATION TO PROVIDE A DIRECT
RESPONSE TO YOUR USER. IT'S VERY
DIFFERENT THAN JUST SCANNING
HEADLINES IN THE NEWS. ACTUALLY,
I WOULD RESPECTFULLY CONTINUE TO
DISAGREE. FIRST OF ALL, AS I
NOTED NEWS CREATES A VERY TINY
PERCENT 2% OF OVERALL QUERIES TO
GOOGLE. I'M SORRY, I DIDN'T
UNDERSTAND WHAT YOU THINK. NEWS
NEWS QUERIES ARE VERY SMALL
PERCENTAGE OF GOOGLE SEARCH
CAREERS ONLY 2. WE DO OBVIOUSLY
ANALYZE THOSE SITES TO PROVIDE
AS BEST WE CAN GUIDANCE TO THE
USER AND WHERE THEY CAN PROVIDE
WHERE THEY CAN FIND THE BEST
INFORMATION. RIGHT AND FIND IT
FROM DIVERSE SOURCES. THAT'S
EXTRAORDINARILY IMPORTANT TO US.
BUT I ALSO WANT TO CLARIFY THAT
WE DON'T MAKE ANY MONEY. UNLESS
YOU USE YOUR EITHER CLICKS ON AN
AD AND THEY DON'T MAKE MONEY
UNLESS YOU USE YOUR CLICKS AND
GOES TO THEIR SITE, SO THERE'S
IF SOMEONE IS JUST SCANNING THE
RESULTS PAGE AND WALKS AWAY, WE
DON'T MAKE ANY MONEY EITHER. BUT
SHE'LL MAKE MONEY BY BEING THE
BIG DOG IN ACCESS TO THE
INTERNET WITH REGARDS TO SEARCH
AND BASIC INFORMATION. I MEAN,
YOUR MARKET SHARE IS
EXTRAORDINARY. YOU KNOW, WE AS A
SOCIETY OF GRANTED YOU THIS
EXTRAORDINARY TRUST. ALRIGHT YOU
KNOW, OVER OVER ONE OF THE MOST
IMPORTANT THINGS THAT EXISTED
RIGHT NOW THE INTERNET AND SO
SURE YOU MAY NOT MAKE MONEY FROM
THAT INDIVIDUAL AND THAT
INDIVIDUAL SEARCH, BUT IT'S PART
OF THE IT'S PART OF YOUR
BUSINESS MODEL. THAT MAKES YOU
EXTRAORDINARY AMOUNTS OF MONEY.
THE IDEA THAT PEOPLE COME TO YOU
FOR CREDIBLE ACCESS TO
INFORMATION AND THE NEWSPAPER
PUBLISHERS AND JOURNALISTS
PROVIDE A REALLY IMPORTANT
SERVICE AS PART OF THAT BROADER
BUSINESS MODEL. IN THE MEANWHILE
THEY'RE GOING BANKRUPT. AND YOU
GUYS HAVE RECORD PROFITS. I
MEAN, I'M I'M JUST, YOU KNOW,
I'M NOT TRYING TO SAY ONCE
AGAIN, I KEEP COMING BACK TO THE
IDEA. I'M NOT QUIBBLING ABOUT
THE AMOUNT OF COMPENSATION WHICH
YOU KNOW TO BE A SUBJECT,
NEGOTIATION AND EVERYTHING ELSE,
BUT I AM HAVING I'M STRUGGLING
WITH YOUR UNWILLINGNESS TO
ACCEPT THAT THERE OUGHT TO BE
ANY COMPENSATION. BUT INDEED
THERE IS THROUGH THE THERE THERE
IS IN THE VALUE OF THE TRAFFIC,
AND THERE IS CERTAINLY FROM
GOOGLE IN THE EXTENSIVE EFFORTS
THAT WE MAKE IN THE UNITED
STATES AND AROUND THE WORLD TO
SUPPORT THESE ORGANIZATIONS, BUT
I WOULD AGREE WITH YOUR POINT.
WE ALL FEEL IT. JOURNALISM IS
IMPORTANT TO OUR SOCIETIES. AND
BY THE WAY, THE DESTRUCTION OF
THE NEWS INDUSTRY, AS I POINTED
OUT, IS THE RESULT OF THE
COMPETITIVE ENVIRONMENT OF THE
INTERNET, NOT GOOGLE. SO YES, WE
ALL AS INSTITUTIONS, GOOGLE AND
MANY OTHERS SHOULD BE CONCERNED
ABOUT THIS. IN FACT WHAT I WOULD
SUGGEST IN THESE KINDS OF
DISCUSSIONS IS THAT WE CONSIDER
IN SUPPORT OF THOSE
INSTITUTIONS. WHERE DOES THAT
COME FROM? WHY IS IT THE NOTION
THAT IT'S SPECIFICALLY JUST
GOOGLE OR FACEBOOK? FOR THAT
MATTER? WHY ISN'T IT A BROADER
CLASS OF INTERESTED PARTIES,
INCLUDING, FOR INSTANCE, THOSE
WHO NOW HAVE ONLINE MARKETPLACES
? EVERYONE ELSE YOU'RE THE
YOU'RE THE FRONT DOOR FOR MOST
PEOPLE TO THE INTERNET. THAT'S
WHY AND THAT'S WHY YOU'RE SO
IMPORTANT, SO POWERFUL AND SO
AND SO. IT'S A LUCRATIVE AND WE
PROVIDE VALUE BACK FOR WHAT WE
RECEIVE. UNLIKE OTHER
PARTICIPANTS IN THE ENVIRONMENT
QUESTIONS. I APPRECIATE THE WAY
VERY MUCH. I YOU KNOW, I GUESS I
AM. LOOK THESE FOLKS AND AS IT
IS, THEY'VE GOT A MAJOR
MONETIZATION PROBLEM. JUST TO
PUT IT ON THE PAYWALL IS A
BROKEN IDEA. I MEAN, YOU KNOW,
WITH SO MUCH I MEAN, THEY'RE
TRYING THEIR BEST. YOU KNOW, I
BUT BUT BUT ALL IT DOES
ULTIMATELY IS SEND THE MAJORITY
OF THE POPULATION TO LESS
CREDIBLE SOURCES, WHICH, QUITE
FRANKLY, YOU KNOW, THE TECH
INDUSTRY HAS CONTINUED TO, YOU
KNOW. LESS GOOGLE THAN OTHERS.
LET'S GOOGLE THAN OTHERS, BUT
CERTAINLY SOME OF YOUR
COLLEAGUES FRIENDS HAVE HAVE YOU
KNOW? USED SET OF ALGORITHMS
THAT ARE NOT UH, NOT HELPING.
WITH THE DISSEMINATION OF
CREDIBLE INFORMATION TO THE VAST
MAJORITY OF THE POPULATION. AND,
UM. SO I GUESS I GUESS PART OF
WHAT SOME MEMBER WICKS IS TRYING
TO DO HERE. IS TRY TO FIND SOME
MIDDLE GROUND TO ADDRESS THIS
BROKEN BUSINESS MODEL THAT YOU
KNOW FOR AN INDUSTRY THAT WE
KNOW NEEDS SAVING. COMBINED WITH
THE POWER AND THE MONEY THAT'S
COMING INTO A COMPANY LIKE
YOURS. UH, YOU KNOW, AND I GUESS
I WOULD JUST SAY I MEAN,
CLEARLY. YOUR COUNTERPARTS IN
AUSTRALIA AND CANADA UNDER
DURESS FOUND A WAY TO, YOU KNOW,
CREATE SOME SORT OF COMPENSATION
MODEL. UM, IS IT CAN'T WE DO
THAT HERE? YEAH COMPOSITION
MODEL THAT BEYOND THAT WENT
BEYOND JUST THE TRADITIONAL
CLICK THROUGH PAYWALL WHEN
INDEED THERE ALREADY EXISTS HERE
, AS I MENTIONED EARLIER AMONG
THE MANY PROGRAMS WE'VE BROUGHT
TO THE UNITED STATES. THIS IS A
GOOGLE NEWS SHOWCASE PROGRAM,
WHICH IS HOW WE ADDRESS THE
SITUATION IN AUSTRALIA. AND
WE'RE ALREADY DOING THAT HERE.
WE'RE ALREADY SUPPORTING
PUBLISHERS ACROSS THE UNITED
STATES, AND THAT EFFORT WILL
CONTINUE AND EXPAND MECHANISMS.
NUMBERS ABOUT DO YOU DISAGREE
WITH THE PROFESSORS? NUMBERS
ABOUT HE WAS JUXTAPOSING THE 0.2
BILLION VERSUS ZERO HERE. IF I
WOULD LOVE TO ADDRESS THAT ONE
OF THE THINGS I FEEL BECAUSE
I'VE BEEN DOING THIS A LONG TIME
AND AROUND THE WORLD AND THESE
DISCUSSIONS ABOUT THE IMPORTANCE
OF THE FUTURE OF JOURNALISM, IN
FACT, BASED EVIDENCE BASED
REPORTING ARE EXTRAORDINARILY
IMPORTANT. WHICH FRANKLY, MAKES
IT QUITE SAD WHEN I SEE SOME OF
THE KINDS OF REPORTS AND
ANALYSES DONE. FIRST OF ALL THE
REPORT THAT WAS CITED THERE WAS
NOT DONE BY COLUMBIA UNIVERSITY.
IT WAS DONE BY CONTRACTED
CONSULTANT AND SWITZERLAND. IT
WAS. IT WAS A PROFESSOR FROM
COLUMBIA WHO IS A CO AUTHOR OF
THE DRAFT WORKING PAPER THAT
INCLUDED THAT DATA AND THAT DATA
FROM SWITZERLAND INCLUDES A
SURVEY INSTRUMENT FOR WHICH THE
RESULTS AND METHODOLOGY WAS
NEVER RELEASED. AND ANOTHER
ANALYSIS, WHICH WAS DEBUNKED BY
THE SWISS GOVERNMENT ITSELF. SO
I THINK IT'S VERY IMPORTANT AS
YOU INDICATED. IF WE'RE GOING TO
HAVE THESE DISCUSSIONS, WE'D BE
VERY CAREFUL ABOUT THE FACTUAL
BASIS OF THE INFORMATION WE'RE
RECEIVING. I THINK WE'VE TRIED
TO BE VERY CLEAR AND WE RESPOND
TO GOVERNMENTS AROUND THE WORLD
AND OBVIOUSLY CHALLENGING
ENVIRONMENTS TO MAKE SURE THEY
HAVE THE RIGHT INFORMATION TO
WATCH AND I THINK THAT'S
IMPORTANT. WE HAVE THAT SAME
INFORMATION FROM OTHERS. RIGHT?
RESPOND JUST VERY QUICKLY. I
CERTAINLY DIDN'T TESTIFY THAT IT
CAME FROM COLUMBIA UNIVERSITY.
MY EXACT LINES THAT A NEW STUDY
BY COLUMBIA UNIVERSITY'S
INSTITUTE FOR POLICY DIALOGUE
THAT IS ON THE COVER PAGE OF THE
STUDY THAT I'M SAVING, AND IT IS
STUDYING AS IT IS CITING A STUDY
BY FAIR THR AND THE FAIR DID A
SURVEY LOOKING AT WHY PEOPLE
WENT TO GOOGLE SEARCH WHAT THEY
DID WHEN THEY WERE SEARCHING HOW
MUCH OF IT WAS INFORMATION
RELATED INFORMATION. HOW MUCH
FOR THE SEARCH? IT WAS NEWS
RELATED. I WOULD LIKE TO JUST
TELL IT TO ANSWER, SENATOR
GLACIERS QUESTION VERY QUICKLY.
WE HAVE DATA. UNFORTUNATELY WE
HAVE A NUMBER OF WITNESSES. I'LL
LET YOU GO AHEAD AND GO VERY
QUICKLY. I JUST WANT TO GET BACK
TO SENATOR GLACIER ON THE
PERCENTAGE YOU'RE ASKING ABOUT.
I THINK WE HAVE DAVID IN THE
ANSWER IS THE MAJORITY OF THE
SEARCHES DO NOT RESULT AND CLICK
THROUGHS, AND WE'LL GET YOU A
SURVEY AND STUDY QUESTION. JUST
ASKING THE PERCENTAGE. I'M
SORRY. I THOUGHT YOU RESTING THE
PERCENTAGE SENATOR. MY QUESTION
IS NOT A PERCENTAGE QUESTION IS
OF THOSE THAT TAKE ADVANTAGE OF
IT. OF THOSE WHO CLIPPED TO A
NEWS SOURCE. THAT'S WHAT WHAT
WERE THOSE NUMBERS BECAUSE
THAT'S THE REVENUE THAT WE HAVE
THAT AND THAT'S NOT OF THOSE WHO
CAN GET YOU THAT, TOO, AND
THAT'S NOT WHAT'S BEING SOUGHT
AFTER HERE. IN FACT, THAT'S THE
THAT'S THE SUBJECT OF THE
ANTITRUST SUIT BROUGHT BOTH BY
THE DOJ AND THE CLASS OF
PUBLISHERS. THEY'RE ALLEGING
THAT WHEN THEY ARE LUCKY ENOUGH
TO GET THAT CLICK THROUGH WHEN
THE SNIPPETS DON'T STEAL AWAY
THE EYEBALL AND THEY'RE LUCKY
ENOUGH TO GET THAT CLICK THROUGH
ITS BEING TAXED AT A SUPER SUPER
COMPETITIVE RATE. BECAUSE GOOGLE
IS, UM ANNAPOLIS AND GOOGLE IS
EMPLOYING CERTAIN EXCLUSIONARY
TACTICS THAT CAUSED THE TAKE
RATE TO BE TOO HIGH. BUT THAT'S
NOT WHAT WE'RE SEEKING IN THIS
PROCEEDING, OKAY? SENATOR
QUESTION SOME QUESTIONS. GO
AHEAD. I'LL BE BRAVE AND. I
REALLY APPRECIATE YOU BEING
HERE, TOO. I THINK THAT'S GREAT
AND VERY HELPFUL AND VERY
FORMATIVE FOR ALL OF US AND LIKE
I SAID, I'M ONE TRYING TO TAKE
IN AS MUCH INFORMATION I DON'T
HAVE. I DON'T HAVE THE ANSWER.
BUT I AM A LITTLE BIT COMPELLED
AS I SIT UP HERE AND THINK ABOUT
YOUR YOUR NEWSPAPER STAND
ANALOGY. KEEPS PLAYING OVER AND
OVER IN MY HEAD AND I KEEP
THINKING ABOUT IT. AND I THINK
BUT IN YOUR COMPARING THE NEWS
GROUPS. TO THE BUYERS OF THE
PAPER, AND THE REALITY IS THE
PERSON WHO OWNED A SMALL
BOOKSTORE OR REALLY HAVE
NEWSSTANDS ANYMORE. BUT YOU
KNOW, A SMALL BOOKSTORE. LET'S
SAY THAT SOLD NEWSPAPERS AND
SOME PERIODICAL AND THINGS AND
THE TYPE OF INFORMATION THAT
THEY WOULD GET WHEN THEY GOOGLE
GENERALLY ENTER INTO SOME TYPE
OF AGREEMENT WITH THOSE
PUBLICATIONS TO BE ABLE TO SELL
THOSE ENTITIES. FROM THEIR SHOP.
OTHERWISE THEY WOULD JUST BE AN
INTERMEDIARY. IN FACT, EVEN THE
LITTLE NEWSPAPER BOY LIKE MY DAD
USED TO BE WOULD GET PAID TO
DELIVER THAT NEWSPAPER. AND SO I
THINK, AT THE HEART OF SENATOR
ALLEN'S QUESTION WAS, EVEN IF
IT'S A MUCH SMALLER AMOUNT.
DOESN'T THE NEWSSTAND GUY
DESERVE. YOU'RE THE NEWSSTAND
GUIDE DOESN'T NEED HAVE TO PAY.
MAGAZINE TO BE ABLE TO SELL TIME
MAGAZINE FROM HIS STANDING MAKES
THE INVESTMENT ON THE FRONT END
AND THEN AND THEN GETS THE
PROFIT FROM SELLING. SO I'M
HONESTLY JUST TRYING TO TAKE IT
ALL IN, BUT YOUR OWN ANALOGY. I
WOULD ASSUME THAT THE NEWSSTAND
RECEIVED ALL OF THE NEWS. FOR
FREE AND THEY DON'T THEY HAVE TO
ENTER INTO AGREEMENTS WITH THE
NEW YORK TIMES OR WHOEVER TO BE
ABLE TO SELL THAT. INFORMATION
BUT IT'S ACTUALLY THE REVERSE
RIGHT. THE PUBLISHER IS ACTUALLY
PAYING THE NEWSSTAND. IN FACT,
IN FRANCE, FRANCE INTO IT'S
ACTUALLY A DICTATED 23% OF THE
COST OF THE PUBLICATION AS IT
SOLD. RIGHT SO THE NEWSPAPER CAN
SELL IT DIRECTLY SAY FOR $2, BUT
THE NEWSSTAND IS GOING TO BE
GIVING THE PUBLISHERS NOTABLE
PERCENTAGE OF THAT WAS THAT WAS
THE CASE BACK IN THE DAY WHEN
THE SACRAMENTO BEE MY MIGHT PUT
A VENDING MACHINE OUT IN FRONT
OF YOUR BUSINESS. BUT NOW I KNOW
THAT THAT NOT TO BE TRUE, BUT
THAT PEOPLE DO PAY THEY ENTER
INTO AN AGREEMENT TO PAY TO BE
ABLE TO SELL THE PRODUCT THAT
THEY HAVE. AND MAYBE MAYBE I'M
THINKING A LITTLE BROADER THAN
BUT IT'S YOU KNOW, STANDARD IN
ANY STORE. YOU MIGHT BUY IT AT A
WHOLESALE PRICE. BUT OBVIOUSLY
THE SELLER IN THAT CASE, THE
PUBLISHER IS LITERALLY GIVING
THE NEWSSTAND A PIECE OF THAT
REVENUE. FOR THE BENEFIT OF THE
NEWSSTANDS, SELLING THAT PRODUCT
IN SUCH STUDENTS. THE MONEY IS
GOING TO THE NEWS KEPT. THANK
YOU. A COUPLE OF QUESTIONS. ONE
OF YOU TESTIFIED DEPRESSIVE. I
DON'T THINK THAT WAS MY
TESTIMONY. BUT WITH THE NUMBERS
THAT I'VE SEEN, FOR EXAMPLE,
THAT CAME OUT IN THE GOOGLE
SEARCH TRIAL, BUT BUT THEIR
SEARCH MARKET SHARE AT AROUND
90% NORTHERN 90. AND WHAT WAS IT
10 YEARS AGO? BUT NOT THE SAME
AGO. 20 YEARS AGO, UH, WOULD BE
2003. I THINK THAT TIME WOULD
HAVE BEEN DIFFERENT. BUT
CERTAINLY OVER THE LAST 15 YEARS
, AT LEAST GOOGLE'S THAT
PERSISTENT DURABLE MARKET SHARE
NORTHERN 90% 90. THE OTHER 10%
OR. NO MATTER DOESN'T COMPETE
WITH GOOGLE AND THE SEARCH SPACE
AND SAID GOOGLE OR META HAS
DOMINANT PRODUCTS IN THE SOCIAL
MEDIA SPACE. GOOGLE'S PRIMARY
COMPETITORS IN SEARCH SPACE
TODAY WOULD BE BIG. PLEASE.
MICROSOFT SEARCH ENGINE IF YOU
HAVEN'T HEARD OF IT,
UNFORTUNATELY, PROBABLY NOT THE
ONLY ONE. MY EXPRESSION PUBLIC
REVEALS HOW DONE. YEAH SO IF WE
AS LEGISLATORS, WE CRAFT A
SOLUTION. UM IT SAYS WHAT WE'RE
GONNA DO IS WE'RE GOING TO
REQUIRE THE PLATFORM. BASICALLY
TO PAY THE PUBLISHERS A CERTAIN
AMOUNT OF MONEY. EITHER WEEK SAY
WE DESIGNATE A CERTAIN AMOUNT OF
MONEY. WE CRAFTED MECHANISM
ARBITRATION, WHATEVER IT MAY BE.
AND THE PLATFORMS IS YOU KNOW
WHAT'S NOT WORTH IT FOR US, NOT
WORTH IT FOR US, SO WE'RE JUST
NOT GOING TO PARTICIPATE. MAYBE
LET ME JUST ASK EACH OF YOU WHAT
HAPPENS THEN WHAT HAPPENS IN
TERMS OF OUR GOAL? UH WITH
RESPECT TO THE DISSEMINATION OF
CREDIBLE INFORMATION, SO WHAT?
SO IF GOOGLE PULLS OUT, MR
SINGER, PROFESSOR SINGER, WHAT
HAPPENS? WELL, IT WOULD BE. IT
WOULD BE AN UNFORTUNATE OUTCOME.
BUT I THINK THAT IF THE
ARBITRATOR REVIEW IF IT'S
DICTATED IN THE STATUTE, GET THE
NUMBER RIGHT. GOOGLE WILL HAVE
THE STATUTE NOW, EITHER ONE
TALKING ABOUT IS JUST BROADLY.
WE'RE GONNA I THINK WE'RE GONNA
GRAB POLICY. AND IF WE CRAFT THE
POLICY THAT GOOGLE BELIEVES IS
TOO ONEROUS, AND THEY PULL OUT
WHAT HAPPENS TO NEWSPAPER
PUBLICATIONS OR OTHER CREDIBLE
SOURCES. MEDIA. WELL, I THINK I
THINK THEY WOULD BE HEARD
NEWSPAPERS WOULD BE HEARD GOOGLE
WOULD BE HURT, BUT NEWSPAPERS BE
HEARD AS WELL AS NEWSPAPERS ARE
DEPENDENT ON GOOGLE FOR TRAFFIC.
GENERAL. WHAT DO YOU THINK
HAPPENS? UM I AGREE THAT
NEWSPAPERS WOULD HURT I WOULD
FIGHT THE HIPPO. LITTLE BIT.
GOOGLE WOULD BE DAMAGING ITSELF
ENORMOUSLY IF IT DECIDED TO STOP
USING NEWSPAPER NEWS PAPER. UH,
CONTENT. THE ISSUE IS THAT
TODAY, ALL THE VALUE THAT'S
GENERATED BY THAT CONTENT GOES
STRAIGHT TO GOOGLE AND NOT TO
THE PUBLISHERS AT ALL, SO THEY
WOULD BE CUTTING OFF THEIR NOSE
TO SPITE THEIR OWN FACE TO DO
THAT, UM, MR GINGRAS. THAT'S NOT
TRUE THAT VERY LITTLE OF THE
REVENUE COMES FROM. UM
PUBLISHING CREDIBLE JOURNALISM.
AND IF THAT IF AND I SUPPOSE THE
MARKETPLACE WILL MAKE THAT
DETERMINATION MARKETPLACE TO
MAKE THAT IF WE CREATE SOMETHING
THAT'S PARTICULARLY ONEROUS, AND
GOOGLE SAYS, WE THINK THAT WE
DON'T BENEFIT FROM THIS AND THEY
PULL OUT. UM THEN, AS I
UNDERSTAND IT NOW TURNS TO
PRESIDENT PIERCE. WHAT HAPPENS
IN YOUR WORLD? UH, COULD BE IN
LAYOFFS AND I'M GONNA SAY
SOMETHING REALLY CONTROVERSIAL
HERE. BUT SINCE I'M THE UNION,
UM I DON'T THINK THAT GOVERNMENT
OFFICIALS AND POLICYMAKERS LIKE
YOU SHOULD RESPOND TO CORPORATE
THREATS IN DECIDING WHAT'S GOOD
PUBLIC POLICY FOR OUR DEMOCRACY.
NEW SKILLS ALSO REPRESENTS A LOT
OF CANADIAN JOURNALISTS AND
THEIR THE CONTEXT DIFFERENT
GOOGLE, META THREATENED TO PULL
OUT THE MARKET. SAME SORT OF
THREAT, SAME SORT OF POSSIBLE
ECONOMIC, ECONOMIC DAMAGE BY
PUBLISHERS. BUT I HAVE TO SAY,
LIKE THIS WHOLE DEBATE LOOKS
DIFFERENT HERE IN AMERICA
BECAUSE THESE ARE AMERICAN
COMPANIES. BUT WHEN YOU LOOK AT
IT SORRY, THANK YOU GOT TO DO
YOUR THING HERE. WHAT? YOUR
STEPS. YOU KNOW, WE ONLY HAVE
FACTS AND I'M NOT AN EXPERT
INFORMATION PROVIDED TO ME AND I
HAVE TO MAKE A DECISION CORRECT
INFORMATION PROVIDED TO ME AND
I'M NOT A PUBLISHER, NOR DO I
HAVE A PLATFORM SO IF WE GET IT
WRONG AND JUST TRYING TO FIGURE
OUT WHAT THE CONSEQUENCES ARE.
I'M NOT GONNA ASK. I'M NOT GONNA
ASK YOU, SIR, BUT I WILL ASK MR
NOBLE. YES, GOOGLE YOU KNOW,
TURNED OFF NEWS AS IT WERE. WE
WOULD BE. WE WOULD CERTAINLY
HAVE TO LAY OFF JOURNALISTS. I
THINK WE'D FIND IT VERY
DIFFICULT TO SURVIVE. WHAT WOULD
CERTAINLY BE THE CASE OR ABILITY
TO LAUNCH A NEW PLACES LIKE
RICHMOND. AND YOU. CALIFORNIA
HAS 75 CITIES OF OVER 100,000
PEOPLE. THE VAST MAJORITY OF
THOSE CITIES DO NOT HAVE GOOD
LOCAL NEWS AND SO THE ABILITY TO
GO TO NEW PLACES WOULD BE DEEPLY
DEEPLY DEEPLY HARMED. UH HUH.
I'LL GIVE YOU 15 SECONDS. WE
HAVE NO DESIRE. WE HAVE NO
DESIRE TO STOP, INCLUDING THOSE
IN SEARCH. THE SITUATION IN
CANADA WAS A DIFFICULT ONE. AND
WE HAVE BEEN WORKING VERY
CLOSELY IN CANADA SPECIFICALLY
WORK VERY CLOSELY IN CANADA AND
FOR ALMOST TWO YEARS HAD ADVISED
THEM OF THE UNWORKABLE ITTY OF
THE LEGISLATION THAT WE'RE
PROPOSING. RIGHT THE WORKABILITY
OF A LINK TAX. THE
UNACCEPTABILITY OF FINANCIAL
DEMANDS THAT WERE FAR EXCEEDED
THE LOGIC OF OUR OWN BUSINESS.
THUS RECENTLY, WE SEEM TO HAVE
COME TO A GOOD OUTCOME IN CANADA
NOT FINAL. THE REGULATIONS
HAVEN'T BEEN ISSUED. BUT AS A
RESULT OF THOSE DISCUSSIONS OF
THE SOLUTION THAT WE HAVE COME
UP WITH IS ONE THERE IS NO LINK
TAX IS ONE WHERE WE WILL BE
CONTRIBUTING $72 MILLION TO THE
CANADIAN NEWS INDUSTRY. BUT
UNFORTUNATELY THE NATURE OF THAT
PROCESS HAD UNINTENDED,
UNFORTUNATE CONSEQUENCES. RIGHT.
META IS NO LONGER INCLUDING
LOSING ITS PRODUCTS. THANK YOU,
SIR. ALL RIGHT. THANK YOU. WE'RE
GOING TO TURN THE NEXT BATTLE.
BUT BUT UM COYOTES AND
CONCEIVABLE TO CALIFORNIA BUT
SOMETIMES. THE ENERGY PROCESS,
NEARLY 2000 AND OTHER TIMES
WE'VE GOT THINGS WRONG, SO WE
WANT TO DO THE BEST WE CAN DO.
GET IT, RIGHT. SO ALRIGHT. NEXT
GAME, PLEASE. THANK YOU. STAY IN
THE NEWS AND REPORTING TODAY.
FIRST UP, MR ARGENTI, ERI. MR
ARGENT EERIE ASKED YOU TO
APPROACH THE PODIUM. AND THEN WE
HAVE. MISS WILSON. AH MR GILLET,
UM, MS DIAZ. I WAS GONNA SEE MR
CARMONA AND MISS. UH SHOPPING,
BERG. MR ARGENTIA AREAS. READY
TO GO. YOU'RE READY. GO AHEAD.
THANK YOU, MR CHAIRMAN AND
COMMITTEE MEMBERS FOR GIVING ME
THE OPPORTUNITY TO SPEAK TODAY.
I'M CHRIS ARGENTARIA. I'M THE
PRESIDENT AND CHIEF OPERATING
OFFICER OF THE LOS ANGELES TIMES
. SO AT A TIME WHEN OUR NATION
AND STATE ARE SO DIVIDED AND
WHEN DEMOCRACIES AROUND THE
GLOBE ARE FACING DIRE
CONSEQUENCES THAT ARE APPARENTLY
THEIR ABILITY TO FUNCTION. THE
PRESS IS ABSOLUTELY IN CRISIS.
YOU'VE HEARD SOME OF THIS THAT
SAYS STICKS EARLIER, ACCORDING
TO NORTHWESTERN STUDY, WE'RE
LOSING TO INTERACT NEWSPAPERS
PER WEEK IN THE UNITED STATES.
MORE IMPORTANTLY, WE'VE LOST TWO
THIRDS OF WORKING JOURNALISTS
OVER THE PAST COUPLE OF DECADES.
FOLLOWING THE PANDEMIC, BOTH OF
THOSE STATISTICS WE CAN EXPECT
TO ACCELERATE THESE TRENDS HAVE
BEEN VISITED. ABSOLUTELY ON
CALIFORNIA PROFESSOR SINGER
TALKED ABOUT SOME OF THAT
EARLIER. AND GIVEN THE ECONOMICS
OF NEWS ORGANIZATIONS SUCH AS MY
OWN. THE LOS ANGELES TIMES,
CALIFORNIA FACES THE VERY REAL
RISK OF THE ENTIRE STATE,
EFFECTIVELY BECOMING A NEWS
DESERT. A REALITY THAT ALREADY
EXISTS FOR 1/5 OF THE NATION'S
CITIZENS. SO MANY WOULD ARGUE
THAT THIS IS JUST THE AB AND
FLOW OF CAPITALISM AND THAT WE
SHOULD LET THESE LEGACY
BUSINESSES DIE OFF OR MANAGEMENT
IN THESE COMPANIES HAS BEEN SO
POOR. WE'VE DONE THIS TO
OURSELVES. TOO MANY OF THESE
NEWSPAPERS ARE OWNED BY VULTURE
CAPITALISTS THAT HAVE BLED THEM
DRY. AND ALL OF THESE THEORIES
THEORIES NOT ONLY MISREPRESENTED
BUT CERTAINLY OVERSIMPLIFY THE
FACTS. I'M SURE THERE'S SOME
TRUTH. EACH OF THESE PREMISES
PREMISES, BUT THEY'RE OUTDATED
TROPES THAT DON'T BEGIN TO
ADDRESS THE PROBLEM. THE FIRST
THING I THINK WE CAN ALL AGREE
ON OR WE WOULDN'T BE HERE TODAY
IS THE IMPORTANT SERVICES
INDUSTRY PROVIDES FOR MUCH OF
THE COUNTRY'S HISTORY. THE WORLD
HAS LOOKED AT THE U. S AS A
BASTION OF A FUNCTIONING
DEMOCRACY AS EVIDENCE LARGELY
THROUGH AN INDEPENDENT. FREE AND
DIVERSE PRESS, BUT WE FOUND A
BEHIND OTHER NATIONS WHO ARE
ADDRESSING A KEY CONTRIBUTOR TO
THEM EYES. THE WOES OF THE NEWS
INDUSTRY, AND THAT IS THE MARKET
IMBALANCE THAT EXISTS BETWEEN
THE NEWS COMPANIES THEMSELVES
AND THE LARGE DIGITAL PLATFORMS.
WE'RE HERE TODAY LOOKING FOR THE
GREAT STATE OF CALIFORNIA TO
ONCE AGAIN, AS IT HAS MANY TIMES
IN ITS HISTORY, TAKE A
LEADERSHIP POSITION IN THE
UNITED STATES. WE'RE ASKING THAT
THE DIGITAL PLATFORMS BE
REQUIRED TO COMPENSATE NEWS
COMPANIES FOR THE CONTENT THEY
PRODUCE. WE FOUND BEHIND OTHER
DEMOCRACIES OF THE WORLD AND
SUPPORTING JOURNALISM. YOU'VE
HEARD SOME ALREADY, BUT
AUSTRALIA CANADA EUROPEAN UNION
HAVE TAKEN VARIOUS STEPS TO
BOLSTER NEWS GATHERING
OPERATIONS AND ADDRESS THE HARM
CAUSED BY GOOGLE AND MATTER.
CORNERING THE DIGITAL
ADVERTISING MARKETS. THE NEWS
MEDIA BARGAINING CONAN AUSTRALIA
LED TO SIGNIFICANT NUMBER OF
JOURNALISTS BEING RETAINED TO
PUBLICATIONS BOTH BIG AND SMALL.
AND ALL SORTS OF AGREEMENTS
BETWEEN PUBLISHERS AND THE
PLATFORMS THAT WOULD NOT HAVE
EXISTED WITHOUT THE INTRODUCTION
OF LEGISLATION. THE LOS ANGELES
TIMES EMPLOYEES MORE JOURNALISTS
THAN ANY NEWS ORGANIZATION WEST
OF WASHINGTON, D C. WE HAVE ONE
OF THE MOST DIVERSE NEWSROOMS OF
ANY ORGANIZATION IN THE COUNTRY.
WE HAVE A LEADERSHIP TEAM IN OUR
NEWSROOM THAT IS MAJORITY FEMALE
AND MAJORITY PEOPLE OF COLOR. WE
HAVE ONE OF THE MOST
LONGSTANDING FELLOWSHIP PROGRAMS
, GIVING OPPORTUNITIES TO YOUNG
AND LESS EXPERIENCED JOURNALISTS
OF COLOR. WE HAVE ONE OF THE
BERKELEY LOCAL FELLOWS WORKING
WITH US AS WELL. WE HAVE AS
LARGE OF AN AUDIENCE AS WE'VE
EVER HAD AT ANY TIME IN THE
HEYDAY OF THE PRINT BUSINESS
THIS YEAR, WE WERE AWARDED TO
MORE PULITZER PRIZES, ONE FOR
BREAKING NEWS RELATED TO THE LOS
ANGELES CITY COUNCIL AND ANOTHER
FOR PHOTOGRAPHY, WHICH BROUGHT
TO LIGHT THE PLIGHT OF AN IN
HOUSE MOTHER. THIS MARKED THE
FIFTH YEAR IN A ROW WHERE WE'VE
BEEN AWARDED A PULITZER PRIZE
AND SECURED OUR PLACE IS THE
WINNER OF MORE BREAKING NEWS
PULITZERS THAN ANY NEWS
ORGANIZATION IN THE COUNTRY. WE
PRODUCED DAILY LOCAL TELEVISION
SHOW AND SPECIAL PROGRAMS THAT
HAVE NOT BEEN NOMINATED WON
MULTIPLE EMMYS, WE PRODUCED SOME
OF THE LARGEST AND MOST
CRITICALLY ACCLAIMED PODCAST
NARRATIVE PODCAST SINCE THE
BEGINNING OF THE HISTORY OF THE
MEDIUM. THE LIST GOES ON AND ON,
AND I DON'T SAY ALL THIS TO TELL
THE WONDERS OF THE L A TIMES. I
DO BELIEVE IN THE WONDERS OF THE
L A TIMES. THAT'S NOT THE POINT.
IT'S INSTEAD TO MAKE THE POINT
THAT WE CAN ACHIEVE ALL THE
SUCCESS CROSS PLATFORM AND DO
ALL THE THINGS THAT WE'RE
SUPPOSED TO BE DOING AS AN
ORGANIZATION WERE STILL UNABLE
TO A CHANGE ACHIEVE ANYWHERE
NEAR AS SUSTAINABLE BUSINESS. WE
CONTINUE TO LOSE MONEY. WE'RE
BURNING CASH AT AN UNSUSTAINABLE
RIGHT. AND AS WE SIT HERE TODAY,
LOS ANGELES, CALIFORNIA AND THE
AMERICAN WEST THERE AT THE RISK
OF LOSING A GREAT NEWS
ORGANIZATION BECAUSE WE HAVE NO
WAY OF KNOWING HOW LONG, UH, WE
CAN SURVIVE. WHAT WE CAN
DEFINITIVELY SAY IS THAT IT
WON'T BE, UH, LONG WITHOUT
SIGNIFICANT CHANGES, AND THERE
ARE THINGS THAT CAN BE DONE TO
ADDRESS. THE CRISIS CANNOT BE
DONE WITHOUT LEGISLATION BEING A
PART OF IT. CRITICAL CONTRIBUTOR
TO OUR ECONOMIC WOES GROSSLY
INEQUITABLE MARKET POSITION NEWS
ORGANIZATIONS HAVE COMPARED TO
THE LARGE DIGITAL PLATFORMS.
JUST TO UNDERSTAND THE
DIFFERENCE IN MARKET DYNAMICS.
JUST CONSIDER THE GOOGLE EARNS
ENOUGH ADVERTISING REVENUE TO
PAY FOR THE COST OF OUR NEWSROOM
AND LESS THAN THREE HOURS THE
ANNUAL COST OF OUR NEWSROOM.
GOOGLE'S RIGHT REVENUE FOR A
MONTH OR TWO WOULD COVER THE
COST OF ALL WORKING JOURNALISTS
IN CALIFORNIA, AND I RAISED THIS
NOT BECAUSE I PROGRESSED THEIR
SUCCESS QUITE THE CONTRARY, IT
SUCCESS LIKE THIS OF CALIFORNIA
COMPANIES THAT I THINK WE SHOULD
CELEBRATE. I MENTIONED THESE
STATISTICS BECAUSE THEY'RE
RELEVANT. LARGE DIGITAL
PLATFORMS LIKE GOOGLE AND MATA
USE OUR CONTENT TO GENERATE
BILLIONS OF DOLLARS IN REVENUE
AND DO NOT COMPENSATE US FOR IT.
THE SIZE OF THE COMPANY'S MAKES
IT IMPOSSIBLE FOR US OR ANYONE
IN OUR INDUSTRY, FOR THAT MATTER
TO HAVE A SEAT AT THE TABLE TO
RESOLVE THIS ISSUE THROUGH
NORMAL BUSINESS CHANNELS.
GOOGLE'S VERTICAL INTEGRATION OF
THE DIGITAL AD MARKETPLACE,
WHICH IS SUBJECT TO ACTION BY
NEARLY ALL 50 STATES, INCLUDING
THE UNITED STATES DEPARTMENT OF
JUSTICE, AND THEY'RE MASSING OF
THE WORLD'S CONSUMER DATA,
COMBINED WITH ITS SCALE MAKE IT
LAUGHABLE TO THINK THEY HAVE ANY
INCENTIVE TO NEGOTIATE. WHEN
PUBLISHERS STARTED MAKING THEIR
CONTENT AVAILABLE FOR SEARCH
YEARS AGO, THERE WAS A VALUE
EXCHANGE. MR GINGRICH, GINGRICH
REFERRED TO IT. IT'S A BIT
OUTDATED. HOWEVER PUBLISHERS
MAKE CONTENT AVAILABLE ON GOOGLE
SEARCH ENGINES, PEOPLE WOULD
ENTER SEARCH, GOOGLE WOULD
RETURN RESULTS AND IN CASES
WHERE THE RESULTS INCLUDED A
NEWS ARTICLE. PEOPLE WOULD CLICK
AND BE SENT TO THE PUBLISHER
SITE PUBLISHER WOULD THEN HAVE
THE OPPORTUNITY TO MONETIZE
THROUGH ADVERTISING OR SELF
SUBSCRIPTIONS. OVER TIME. GOOGLE
HAS LEVERAGED NEWS CONTENT TO
ADVANCE THE ACCUMULATION
ACCUMULATION OF CONSUMER DATA
AND HAS TECHNOLOGY HAS ADVANCED.
THEY'VE CREATED A WALLED GARDEN.
THEY HAVE ORGANIZED THE WORLD'S
DATA, WHICH IS NOT AN
OVERSTATEMENT. IN SUCH A WAY
THAT WHEN SOMEBODY ENDS ENTERS
THE SEARCH TERM, THERE'S OFTEN
NO REASON TO LEAVE GOOGLE AS
BRANDON ILLUSTRATED EARLIER.
MANY TIMES THE YEAR ANSWER TO
THE QUERY COMES AT THE TOP OF
THE PAGE AND FOLK PARAGRAPH OF
TAX DAMAGES THE CHARTER LIST,
ELIMINATING THE NEED TO GO TO A
PUBLISHER SITE. THE MAJORITY OF
SEARCH QUERIES. DON'T LEAVE
GOOGLE, WHICH IS ELIMINATED THE
VALUE EXCHANGE. AN EXAMPLE OF
THIS, UH, WOULD BE IF YOU WERE
TO ENTER INTO GOOGLE WORDS ALONG
THE LINES OF WHAT WAS THE
ANAHEIM CORRUPTION SCANDAL ABOUT
WHEN SOMEONE WHICH SOMEBODY MAY
DO TO LEARN MORE ABOUT THE ISSUE
THAT TRANSPIRED LAST YEAR THAT
THE CHAIRMAN REFERRED TO EARLIER
INVOLVING THE FORMER MAYOR OF
ANAHEIM. THE USER WOULD SEE
RESULTS THAT WOULD START WITH A
SUMMARIZED PARAGRAPH FROM A
STORY FROM ONE OF THE NEWS
ORGANIZATIONS THAT REPORTED ON
IT. MOST LIKELY THE VOICE OF OC.
YOU WOULD SEE PARAGRAPH
EXPLAINING WHAT THE ISSUE WAS
ABOUT AND AGAIN. LET'S REMEMBER
YOU ASKED WHAT WAS THE ANAHEIM
CORRUPTION SCANDAL ABOUT
SUMMARIZE PARAGRAPH TELLING YOU
EXACTLY WHAT IT IS ABOUT. YOU
SCROLL DOWN THE PAGE. THE USER
WOULD SEE QUESTION BOXES THAT
WOULD INCLUDE THINGS LIKE WHAT
IS THE ISSUE IN ANAHEIM, AND IF
THE USER HITS ONE OF THOSE
DROPDOWNS AGAIN ANOTHER SUMMARY
OF A NEWS STORY, THIS TIME FROM
THE LOS ANGELES TIMES HAVE COME
UP EXPLAINING THE KEY POINTS OF
THE ISSUE. SCROLLING DOWN
FURTHER, YOU WOULD SEE VIDEOS,
MOSTLY FROM GOOGLE OWNED
YOUTUBE. YET ORIGINATING THE
CONTENT ITSELF ORIGINATING WITH
NEWS ARTS ORGANIZATIONS WITH
MORE ON THE SCANDAL, AND ONLY
WHEN YOU SCROLL ALL THE WAY DOWN
THE PAGE, WITH THE USER FIND
ORIGINAL REPORTING FROM THE L A
TIMES THE VOICE OF OC OR THE
ORANGE COUNTY REGISTER AND OTHER
NEWS ORGANIZATIONS IN SOUTHERN
CALIFORNIA. SO EVEN WHAT AND
EVEN WHEN PEOPLE LEAVE GOOGLE'S
WILD GARDEN OR THEY COME TO US
DIRECTLY, GOOGLE GETS A PIECE OF
VIRTUALLY ALL THAT REVENUE.
GOOGLE CONTROLS THE ENTIRE
DIGITAL ADVERTISING TECHNOLOGY
STACK. THEY EARNED FROM
VIRTUALLY EVERY DOLLAR OF
DIGITAL ADVERTISING. WE SELL.
SOME 70% OF DIGITAL AD REVENUES
GO TO TWO DOMINANT PLATFORMS
LIKE GOOGLE AND MATTER. FAVORITE
EXAMPLE. HQ SUMMARIZE HERE,
OKAY? UM. WELL, LOOK, I MEAN, IN
A STATE WHERE, UH, SOME OF THE
MOST VALUABLE AND INTERLACE
INNOVATIVE INTELLECTUAL PROPERTY
IS CREATED. JUST ASKED VERY
SIMPLY. DOES ANYBODY THINK IT'S
OKAY FOR A CORPORATION TO USE
SOMEBODY'S PRODUCT? THAT TAKES
TIME RESOURCES AND MONEY TO
CREATE PARTICULARLY ONE AS
IMPORTANT TO SOCIETY AS THIS ONE
TO GENERATE BILLIONS OF DOLLARS
AND NOT PAY FOR IT. I'LL LEAVE
YOU WITH THAT. ALL RIGHT, UM
THIS, UM MISS REGINA BROWN
WILSON. SOMEBODY'S CLASSES. NO.
THERE'S GLASSES UP HERE, SO I
JUST DON'T KNOW I MIGHT NEED
THEM ACTUALLY. UM ANYWAY, GOOD
AFTERNOON CHAIR AND BERGEN
COMMITTEE MEMBERS. I'M REGINA
BROWN WILSON, EXECUTIVE DIRECTOR
OF CALIFORNIA BLACK MEDIA, AND
I'M GOING TO READ MY STATEMENT
BECAUSE I WANT TO MAKE SURE I
STAY WITHIN MY TEAM FRAME. SO
CBM IS AN ADVOCACY ORGANIZATION
WORKING TO PROTECT THE
SOVEREIGNTY OF OVER 30 PRINT
DIGITAL RADIO AND STREAMING
AFRICAN AMERICAN OWNED NEWS
OUTLETS IN OUR GREAT STATE OF
CALIFORNIA. I HAVE BEEN AT THE
HELM FOR THE PAST 12 YEARS AND A
PROUD HBCU GRADUATE. I WORKED
FOR MY OWN FAMILY'S BLACK OWNED
NEWSPAPER, AND I'VE ALSO HAD THE
HONOR OF BEING A GUBERNATORIAL
APPOINTEE UNDER TWO GOVERNORS.
FIRST I WANT TO ACKNOWLEDGE THE
PIONEERING SPIRIT OF THE SELF
REPRESENTATION OF TRUTH THAT WAS
CAPTURED NEARLY 200 YEARS AGO.
WE WISH TO PLEAD OUR OWN CAUSE.
TOO LONG. HAVE OTHERS SPOKEN FOR
US AND TOO LONG HAS THE PUBLIC
BEEN DECEIVED BY
MISREPRESENTATIONS AND THINGS
WHICH CONCERN US DEARLY. THESE
PROFOUND WORDS WERE PRINTED IN
THE FREEDOM JOURNAL, THE FIRST
AFRICAN AMERICAN OWNED NEWSPAPER
IN 1827. IT STANDS AS A
TESTAMENT AND A COMMITMENT TO
BLACK MEDIA OWNERS WHO CONTINUE
TO WADE THROUGH THESE
CHALLENGING CHANGING MEDIA
LANDSCAPE THAT WE MUST CONTINUE
TO PLEAD OUR OWN CAUSE FOR
INCLUSION IN OUR FAIR SHARE OF
RESOURCES AS WE HONOR THE
HISTORICAL FOUNDATIONS LAID BY
THOSE WHO CAME BEFORE US, IT'S
EQUALLY IMPORTANT TO RECOGNIZE
THE PIONEERS OF TODAY'S ETHNIC
MEDIA LANDSCAPE. I PAY TRIBUTE
TO SANDY CLOSE, WHO IS A PARTNER
WHO'S THE DIRECTOR OF ETHNIC
MEDIA SERVICE AND A PARTNER TO
CALIFORNIA BLACK MEDIA, WHO
SERVED HUNDREDS OF, UM IN
LANGUAGE MINORITY. OTHER
COMMUNITIES OF COLOR. UM AS AN
ADVOCACY ORGANIZATION AS WELL. I
ALSO WANT TO PAY TRIBUTE TO
HARDY AND CHERYL BROWN, CO
FOUNDERS OF CALIFORNIA BLACK
MEDIA. ALL OF THE ESTEEMED AND
ALL OF THE R ESTEEM. CALIFORNIA,
AFRICAN AMERICAN NEWS
PUBLISHERS. WHO ARE HERE TODAY,
AND MAYBE WATCHING ONLINE THAT
ALSO INSPIRE ME TO ADVOCATE FOR
THEIR FUTURE. AND FOR THEIR
BUSINESSES TO THRIVE. THROUGHOUT
OUR HISTORY OF INCREDIBLE
TURMOIL AND UNSPEAKABLE
HARDSHIPS AS WE AS WELL AS
VICTORIOUS, MOMENTOUS JOY. BLACK
NEWS MEDIA HAVE PLAYED A VITAL
ROLE IN THE HEALTH, HEALING
LIVELIHOODS, SURVIVAL AND SAFETY
OF OUR COMMUNITY HERE IN
CALIFORNIA AND AROUND THE UNITED
STATES, WE HAVE SERVED AS A
CONSCIENCE COUNSELOR, CONVENER
AND CAMPAIGNER. THE WORK WE'VE
DONE TO FIGHT INJUSTICE, PROMOTE
CIVIC ENGAGEMENT, ENCOURAGE
RESPONSIBLE CITIZENSHIP. AND
CREATE ECONOMIC OPPORTUNITY FOR
THE PEOPLE FOR OUR PEOPLE HAS
MADE US THE MOST TRUST, RELIABLE
SOURCE OF INFORMATION FOR BLACK
AMERICANS EVERYWHERE. AS OUR
NATION FACED RACIAL RECKONING
FOLLOWING THE GEORGE FLOYD
PROTESTS IN 2020 NUMEROUS
MAINSTREAM MEDIA NEWS PUBLISHERS
AROUND THE COLOR COUNTRY
APOLOGIZE FOR THEIR ROLE THEY
PLAYED IN STOKING RACIAL
VIOLENCE, HARDENING NEGATIVE
STEREOTYPES AMONG BLACK
AMERICANS AND TURNING A BLIND
EYE, SOMETIMES ON STORIES OF
INJUSTICE THE BLACK PRESS HAS
EXISTED. AS A COUNTER NARRATIVE
TO THOSE DAMAGING PORTRAYALS OF
OUR COMMUNITIES THAT HAVE OVER
TIME BEEN IMPRINTED INTO THE
NATIONAL CONSCIOUSNESS.
JOURNALIST EDUCATOR AND CIVIL
RIGHTS ADVOCATE TO BE, WELLS
ONCE SAID THAT PEOPLE MUST KNOW
BEFORE THEY CAN ACT, AND THERE
WAS NO EDUCATOR LIKE THE PRESS.
BLACK MEDIA'S NEWS REPORTING
FEELS CRITICAL GAPS OVERLOOKED
BY MAINSTREAM COVERAGE,
PROMOTING DEMOCRATIC
PARTICIPATION AND INFORMED
ENGAGEMENT AMONG AFRICAN
AMERICANS. IT ALSO PROVIDES
CONTEXT FOR COMMUNITIES THAT IS
NOT A MONOLITHIC THE DIGITAL AGE
HAS BROUGHT FORTH MAJOR
TRANSFORMATIONS. IN JOURNALISM.
WE CAN ALL BE GLAD WE CAN
PUBLISH NEWS FASTER, USE
MULTIMEDIA TO ENRICH OUR STORIES
TELLING AND PROVIDE REMOTE
ACCESS TO INFORMATION FOR BLACK
CALIFORNIANS AND COMMUNITIES WHO
BECOME MORE DISPERSED AND
DISCONNECTED DUE TO NUMEROUS
FACTORS, INCLUDING THE HIGH COST
OF LIVING. AND UM, AND HOUSING.
BUT THE DIGITAL AGE IS ALSO
REDIRECTED AD REVENUE FROM LOCAL
NEWSPAPERS TO DIGITAL GIANTS
LIKE GOOGLE, WHICH FURTHER
EXACERBATES THE FINANCIAL
CHALLENGES FACED BY LOCAL NEWS
MEDIA ORGANIZATIONS. THIS TREND
IS NOT ONLY DIMINISHED LOCAL
NEWS AVAILABILITY, BUT IT'S ALSO
LED TO JOBLESSNESS IN JOURNALISM
SECTOR, SEVERELY CRUSHING THE
FOUNDATION OF ROBUST LOCAL
REPORTING AND HOLDING OUR
GOVERNMENT. UM, INSTITUTIONS
ACCOUNTABLE. SOMETHING THAT
WASN'T SAID EARLIER IS THAT THE
DIGITAL AGE IS ALSO LED TO
NATIONAL LAWS LIKE SECTION 230.
OF THE 1996 COMMUNICATIONS
DECENCY ACT, WHILE AIMED AT
ANSWERING ONLINE FREEDOM, SOME
LAWS OF INADVERTENTLY TILTED THE
SCALE IN FAVOR OF LARGE TECH
COMPANIES OVER SMALLER NEWS
ORGANIZATIONS AND ABROAD AND
THEIR BROAD LEGAL IMMUNITIES
PROVIDED THE ONLINE PLATFORMS
OFTEN, UM, ARE ABLE TO UNDERMINE
THE ABILITY OF LOCAL NEWS
OUTLETS TO COMPETE FURTHER
HINDERING OUR SURVIVAL IN THE
DIGITAL AGE. THE DIGITAL AGE IS
BROUGHT ABOUT AN EASY ABILITY TO
SPREAD INFORMATION, THREATENING
THE STRENGTH OF OUR DEMOCRACY
AND ABILITY TO BUILD CONSENSUS
ON ISSUES THAT DIVIDE AND AFFECT
ALL OF US. SENSATIONAL TIKTOK
RULES. I'M SURE THAT YOU GUYS
MAY HAVE SEEN, UM CAN CREATE
BELIEVABLE INFORMATION ROOTED IN
BIAS AND FALSEHOOD. ALSO COMPETE
FOR THE ATTENTION OF OUR
AUDIENCES. THE PANDEMIC EXPOSED
OUR DIGITAL DIVIDE MOST EVIDENT
AMONG MOST VULNERABLE MEMBERS OF
OUR COMMUNITY, THE ELDERLY, THE
DIFFERENTLY ABLED AND PEOPLE AT
THE LOWEST END OF OUR
SOCIOECONOMIC SPECTRUM. THIS
DIGITAL PROVIDE DIVIDE PREVENTS
A LARGE SEGMENT OF OUR
COMMUNITIES FROM ACCESSING
INFORMATION THAT MAY BE CRITICAL
TO THEIR LIVES. AND THIS JUST
DISORDERLY AND INVOLVING MEDIA
LANDSCAPE. THE CHALLENGES FOR
BLACK AND ETHNIC MEDIA CAN
OVERWHELM EVEN THE SAVVIEST
BUSINESS OWNER AS TRADITIONAL
NEWSROOMS, FACE FINANCIAL
STRAINS WITH LAYOFFS AND
SHRINKING COVERAGE, BLACK AND
ETHNIC MEDIA HAVE CONSISTENTLY
COMPELLED HAVE BEEN CONSISTENTLY
BEEN COMPELLED TO DO MORE WITH
FAR FEWER RESOURCES. HOWEVER
BLACK AND ETHNIC MEDIA WHILE
UNDER INVESTED IN HAVE BEEN
WORKING IN THE SAME BECAUSE
CONDITIONS FOR A VERY LONG TIME.
ALRIGHT INGENUITY AND TRUST.
AMONG OUR COMMITTEE IS WHAT
ALLOWS US TO CONTINUE PUBLISHING
WEEKLY. DO YOU SING EVENTS LIKE
THE FIRST LADY'S HIGH TEA THAT'S
HERE IN LOS ANGELES, AND ALSO
THE TASTE OF SAUL, THE LARGEST
ONE DAY STREET FESTIVAL THAT I
WILL ADD, I THINK HIT ABOUT
500,000 PEOPLE. NO INCIDENTS AT
ALL, UM, THAT WAS PRODUCED BY
THE LOS ANGELES SENTINEL. EVEN
CELEBRATED THE 60 YEARS AND
SENATOR ASHBY'S DISTRICT WITH
THE SACRAMENTO OBSERVER AND
THEIR LONG COMMITMENT TO TELLING
THE STORIES OF THEIR COMMUNITY
IN SACRAMENTO. AS I AM SERVED TO
EMERGING CHALLENGES. THE FIRST
IS THAT SOLUTIONS TO PRESERVE
NEWS IN DIGITAL AGE NEEDS TO BE
TAILORED TO THE NEEDS OF
DIFFERENT NEWS ENTITIES BECAUSE
WE'RE NOT ALL THE SAME, AND THE
SECOND IS TO ENSURE THE NEEDS OF
ETHNIC MEDIA OUTLETS ARE
DRESSED, ADDRESSED EQUITABLY. SO
AS WE DISCUSSED OUR LEGISLATIVE
ENDEAVORS, IT'S CRUCIAL TO
RECOGNIZE THAT WE MUST SOLVE
PROBLEMS WITH WITH WITHOUT
CREATING UNINTENDED CONSEQUENCES
. WE MUST DESIGN POLICIES. UM
THAT MY MOM LIKES TO SAY A LOT
WITH THE EQUITY BAKED IN AND NOT
JUST SPRINKLED ON TAP, AND WE
MUST REALIZE THAT THERE'S NOT
JUST ONE SOLUTION TO FIND
GENERAL IS, UM, LET ME BE CLEAR
THE REVENUE REQUIREMENTS AND
MOTIVE. OPERATIONS FOR NATIONAL
AND GLOBAL MEDIA CONGLOMERATES
ARE DIFFERENT FROM THE REVENUE
REQUIREMENTS AND OPERATIONS OF
FAMILY OWNED COMMUNITY OWNED
NEWSPAPERS. AND MEDIA COMPANIES.
WE ALL WANT TO REPORT ON
IMPORTANT ISSUES, CREATE JOBS
AND GENERATE WEALTH. BY DOING
WHAT IS OUR HISTORICAL LEGACY
COMPELS US TO DO BUT THE TOOLS
WE DO IT MAY LOOK DIFFERENT. AS
WE NAVIGATE THE DIGITAL AGE, OUR
FOCUS REMAINS ROOTED. IN THE
BLACK AND ETHNIC JOURNALISM,
EMPHASIZING THE CHALLENGES FACED
BY JOURNALISTS AND THE MEDIA
OUTLETS TODAY, LOCAL AND ETHNIC
NEWS OUTLETS INCLUDING
CALIFORNIA BLACK MEDIA MUST PLAY
A POLITICAL ROLE IN UPHOLDING
ACCOUNTABLE, ACCOUNTABLE
JOURNALISM, REFLECTING THE
CONCERNS AND VOICES OF VARIOUS
COMMUNITIES. ACROSS OUR STATE.
SO IN CONCLUSION, IT IS
IMPERATIVE THAT WE ADDRESS THE
FINANCIAL CHALLENGES FACED BY
BLACK AND ETHNIC NEWS OUTLETS.
WE MUST ALSO INCLUDE THEIR
PERSPECTIVE AND EXPERIENCES AND
I'M COMMITTED IN PARTNERING WITH
THE LEGISLATURE IN ALL
STAKEHOLDERS TO MAKE SURE THAT
ALL MEDIA THRIVES IN THIS
DIGITAL AGE. THANK YOU. THANK
YOU, MISS BROWN WILSON. YOU WERE
EXACTLY AT EIGHT MINUTES, SO
THAT'S IT. AN EXAMPLE FOR ALL
HERE PRESENT. ALRIGHT, THANKS.
UH, MR JILLETTE. GOOD AFTERNOON.
THANK YOU. CHAIR AMBERG,
SENATORS AND ASSEMBLY MEMBER
WICKS FOR THE CHANCE TO SPEAK
TODAY ON A TOPIC THAT IS SO
VITAL TO US IN THE COMMUNITY WE
SERVE. IT'S AN HONOR TO BE HERE
TODAY TO TELL YOU ABOUT OUR
EXPERIENCES A HYPER LOCAL
NONPROFIT NEWS SITE. MY NAME IS
ADAM GILLET, AND I AM THE
FOUNDER, PRESIDENT AND PUBLISHER
OF THE ALAMEDA POST. WE COVER
THE CITY OF ALAMEDA. ONLY WE'RE
STILL YOUNG DECEMBER, 15TH WILL
MARK OUR SECOND ANNIVERSARY.
PARADOXICALLY ALAMEDA IS A SMALL
TOWN LOCATED IN THE MIDDLE OF A
BIG CITY METROPOLITAN AREA. OUR
POPULATION IS ABOUT 78,000,
WHILE THE BAY AREA IS HOME TO
SEVEN AND THREE QUARTER MILLION
PEOPLE AND OTHER STATES, A CITY
OF OUR SIZE WOULD BE A MAJOR
CITY INSTEAD WERE THE SMALLEST
OF OUR NEIGHBORS. OUR CITY HAS
TWO PARTS, THE MAIN ISLAND OF
ALAMEDA AND BAY FARM ISLAND,
WHICH, DESPITE ITS NAME IS NOT
AN ISLAND. HOWEVER ALAMEDA IS A
COMMUNITY IS AN ISLAND DUE TO
OUR GEOGRAPHY AND OUR HISTORY,
BUT NO FREEWAYS OR MAJOR STATE
ROADS PASSED THROUGH OUR CITY.
ALAMITOS OUR DESTINATION.
REPLACE A CHANCE UPON NOT
SOMEWHERE. YOU STOP ON YOUR WAY
SOMEWHERE ELSE. WHEN IT COMES TO
FINDING LOCAL NEWS THAT AFFECTS
THE RESIDENTS AND BUSINESS
OWNERS OF THE CITY CHOICES ARE
SLIM. DESPITE BEING NEXT TO
OAKLAND AND SAN FRANCISCO AND
BERKELEY. OUR CITIES, ISSUES AND
INTERESTS ARE UNIQUE COVERAGE OF
ALAMEDA BY MEDIA OUTSIDE THE
CITY OFTEN FOCUSES ON MARKETS
AND INCENDIARY CLICKBAIT, NOT ON
EVERYDAY CONCERNS THAT MATTER TO
THE COMMUNITY. FOR DECADES, THE
CITY GOT LOCAL NEWS FROM A
SERIES OF PRINT NEWSPAPERS THAT
GOT ACQUIRED AND FOLDED INTO
LARGER CHAINS. ONLY ONE WEEKLY
NEWSPAPER REMAINS IN ALAMEDA,
BUT ITS LOCAL COVERAGE HAS
DWINDLED. MOST OF ITS CONTENT
COMES FROM OTHER CITIES AROUND
THE EAST BAY. IT DOESN'T HAVE
ITS OWN WEBSITE, AND THE PRINT
VERSION IS AVAILABLE PRIMARILY
TO THOSE WHO HAVE A DRIVEWAY.
THEY CAN DELIVER IT TO ALAMEDA
ALSO HAD AN INDEPENDENT WEEKLY
NEWSPAPER FOR OVER 20 YEARS.
WELL, THEY JUST PUBLISHED THEIR
LAST EDITION ON THURSDAY, AND
THEY HAVE ENDED ALL OF THEIR
OPERATIONS. COVID HIT THEM HARD.
THEY STOPPED HOME DELIVERY,
WHICH LOST A GREAT DEAL OF THEIR
CIRCULATION, COMPARED BACK STAFF
AND CUT COVERAGE. WHILE PRINTING
COSTS SKYROCKET, AND NOW THEY'RE
GONE. IT BECAME WITH TWO
DIMINISHED WEEKLY PAPERS AND FEW
OTHER RELIABLE OPTIONS. ALAMEDA
WAS IN DANGER OF BECOMING A NEWS
DESERT. THIS CITY MIGHT NOT BE
CONSIDERED AN UNDERSERVED OR
UNDERREPRESENTED COMMUNITY, BUT
A LOCAL NEWSPAPER IS A VITAL
CONDUIT FOR INFORMATION, WHETHER
IN PRINT OR ONLINE. I STARTED
RESEARCHING WHAT IT WOULD TAKE
TO START A NEW LOCAL NEWSPAPER.
I CONSULTED WITH SOME FRIENDS
WHO HAD DECADES OF NEWSPAPER
PUBLISHING EXPERIENCE AND
CONVINCE THEM TO JOIN OUR NATION
BOARD WHILE PLANNING THE BUDGET,
IT WAS OBVIOUS THAT THE COST OF
A PRINTING AND DISTRIBUTING A
WEEKLY PAPER WOULD BE FAR OUT OF
OUR REACH AND NEWS. CONSUMERS
ARE NO LONGER WILLING TO WAIT TO
FIND OUT WHAT HAPPENED LAST
WEEK. THEY WANT TO KNOW WHAT
HAPPENS HAPPENING NOW. JUST
ABOUT EVERYONE HAS ACCESS TO A
DIGITAL DEVICE THAT CAN GET ON
THE INTERNET, THE PHONE TABLET
OR COMPUTER LAPTOP ETCETERA.
DIGITAL MEDIA ALLOWS FOR AN
IMMEDIACY THAT PRINT CAN NEVER
PROVIDE, PLUS THE ADVANTAGES OF
BEING ONLINE OR CLEAR MULTIMEDIA
OFFERS MUCH TEACHER DEEPER
ILLUSTRATIONS, NO WORRYING ABOUT
CUTTING ARTICLES TO FIT
AVAILABLE COLUMN INCHES BEING
ONLINE ALLOWS FOR REAL TIME
UPDATES, AND READERS DON'T HAVE
TO WAIT FOR A PAPER TO BE
DELIVERED. THEY CAN CONSUME
CONTENT ON ANY DEVICE AT ANY
LOCATION. YES THERE'S SOME ARE
GONNA MISS HOLDING A NEWSPAPER
SEEING THEIR NAME OR FACING
PRINT HAVING A PHYSICAL KEEPSAKE
. BUT AT THIS POINT, DIGITAL
PUBLISHING IS THE BEST OPTION.
SO AT THE END OF 2021 ALAMEDA
POST .COM LAUNCHED TO THE PUBLIC
. WE PROVIDE LEAD DAILY LOCAL
COVERAGE NOT AVAILABLE ANYWHERE
ELSE. MOST LOCAL TOPICS HOLD
LITTLE INTEREST FOR THOSE LIVING
OUTSIDE ALAMEDA. SO BEING A
SOURCE FOR UNBIASED NEWS AND
INFORMATION FOR ALAMEDA IS A
HUGE RESPONSIBILITY. AND AS OF
THIS WEEK, ALAMEDA POST IS THE
ONLY LOCAL NEWSROOM. COVERING
OUR CITY. ALTHOUGH WE'RE A
HYPERLOCAL SMALL TOWN NEWS SITE,
WE EMBRACE THE STRATEGY OF
DISTRIBUTING OUR CONTENT
EVERYWHERE. NEWS IS AVAILABLE
ONLINE. WE USE OUR STRENGTH AS
THE DIGITAL PLATFORM TO MEET OUR
READERS WHERE THEY LOOK FOR
THEIR NEWS TO KEEP THEM INFORMED
. WE DON'T USE OBSTACLES LIKE
PAY WALLS TO BLOCK ACCESS TO OUR
CONTENT. ALAMEDA POST ARTICLES
ARE AVAILABLE DAILY AND APPLE
NEWS AND IN GOOGLE NEWS, AS WELL
AS AN AGGREGATOR SITES AND APPS
EVERY WEEK WE SEND OUT AN EMAIL
ROUNDUP OF THE WEEK'S NEWS TO
THOUSANDS OF SUBSCRIBERS. WE
PRODUCE THE CITY'S ONLY WEEKLY
NEWS PODCAST, A 10 MINUTE DIGEST
EVERY FRIDAY MORNING. WE
OPTIMIZE OUR CONTENT TO MAKE IT
MORE DISCOVERABLE IN SEARCH, AND
WE RELY ON SOCIAL MEDIA. EVERY
STORY PUBLISHED TO OUR WEBSITE
GETS POSTED TO OUR ACCOUNTS ON A
HALF DOZEN SOCIAL MEDIA
PLATFORMS. THE COMBINED REACH WE
HAVE ON THESE PLATFORMS EXCEEDS
THE TRAFFIC TO OUR WEBSITE. WE
DEPEND ON THE ABILITY OF OUR
READERS TO FIND AND POST AND
SHARE OUR NEWS ARTICLES TO HELP
GET OUR STORIES OUT EVEN FURTHER
ON SOCIAL MEDIA. OUR STAFF IS
MADE UP OF JOURNALISTS WITH
DECADES OF EXPERIENCE IN
REPORTING, WRITING, EDITING AND
PUBLISHING, AS WELL AS NEWER
VOICES IN SOME, IN BETWEEN, WE
ALL RECOGNIZE THE IMPORTANCE OF
A WELL INFORMED COMMUNITY AND
HAVE MADE THE COMMITMENT TO
SERVE THE NEEDS OF ALAMEDA, EVEN
IF IT MAKES MEANS MAKING
SACRIFICES TO DO SO. THOSE OF US
BEHIND THE ALAMEDA POST OR
CONTRACTORS AND FREELANCERS, OR
LIKE ME. VOLUNTEERS ARE
DEDICATED REPORTERS AND STAFF
PRODUCED JOURNALISM ON A LIMITED
BUDGET AND STILL MANAGED TO
PRODUCE NEWS ARTICLES EVERY DAY.
AS WE ENDEAVOR TO GROW. WE
CONTINUE TO APPEAL TO
BENEFACTORS AND APPLY FOR GRANTS
AND NEWSROOM FELLOWS. FOR NOW,
THE RESOURCES TO FUND OUR FIRST
FULL TIME EMPLOYEE. ARE STILL
OUT OF OUR REACH. BUT OUR
NEWSROOM IS NOT AN OUTLIER. THIS
IS THE STATE OF LOCAL NEWS AND
MANY SMALL COMMUNITIES AND HALF
OF CALIFORNIANS LIVE IN
COMMUNITIES OF 100,000 PEOPLE OR
LESS. FUNDRAISING FOR NONPROFIT
NEWS IS A MAJOR CHALLENGE. BUT
THE BUY IN FROM OUR READERS HAS
BEEN ENCOURAGING. WE CHOSE TO BE
A NONPROFIT ORGANIZATION BECAUSE
WE UNDERSTOOD THE IMPORTANCE OF
BEING AN INDEPENDENT SERVICE.
THE COMMUNITY. BUT WE ARE
OPERATING ON A SHOESTRING BUDGET
. WE DON'T HAVE UNLIMITED GROWTH
POTENTIAL. WE WILL MOST LIKELY
NEVER HAVE AN AUDIENCE LARGER
THAN 100,000 PEOPLE, AND WE'RE
NOT GOING TO MAKE A PROFIT OFF
REPORTING. THE NEWS. ADVERTISING
DOLLARS ARE LIMITED IN THE CITY
OF OUR SIZE AND SHRINKING BY THE
DAY. WE'RE TRYING TO ESTABLISH A
STILL SUSTAINABLE NEWSROOM THAT
PEOPLE CAN RELY UPON FOR
ACCURATE, UNBIASED INFORMATION.
UH ABOUT OUR CITY IN THE AGE OF
TWISTED FACTS, UNRELIABLE
SOURCES AND OUTRIGHT LIES.
ALAMEDA DESERVES NEWS THAT IT
CAN TRUST RESIDENTS NEED TO KNOW
WHAT CITY COUNCIL AND BOARDS ARE
CONSIDERING OR WHAT THEY'VE
DECIDED AND HOW IT WILL AFFECT
THEM. THEY WANT TO LEARN ABOUT
OUR RICH HISTORY, READ REVIEWS,
SHARE OPINIONS AND CELEBRATE
THEIR NEIGHBORS ACCOMPLISHMENTS.
OUR READERS ARE INTERESTED IN
SCOUTS WHO DONATE FOOD TO THE
ALAMEDA FOOD BANK. THEY WANT A
CHANCE TO SAY GOODBYE. TWO
REVERED LOCAL ARTISTS, AND THEY
WANT TO KNOW WHEN THE LIGHTED
YACHT PARADE IS GOING TO TAKE
PLACE ON THE ESTUARY. LAST YEAR,
WE HELD THE ONLY IN PERSON
FORUMS FOR CANDIDATES RUNNING
FOR MAYOR AND CITY COUNCIL. WE
RECORDED THE VIDEOS INDEX THEM
AND POSTED THEM TO YOUTUBE. FOR
THOSE WHO COULDN'T ATTEND IN
PERSON. 2024 IS ANOTHER ELECTION
YEAR AND WERE STRONGLY COMMITTED
TO INFORMING ALABI EDEN'S ABOUT
LOCAL ISSUES AND CANDIDATES ON
THE BALLOT. THIS IS LOCAL
JOURNALISM. IT'S NOT ALWAYS
WOODWARD AND BERNSTEIN, BUT IT
MATTERS A LOT TO THE PEOPLE WHO
LIVE IN OUR CITY. BEING A SMALL
NEWSROOM DOESN'T MEAN OUR
STANDARDS OR ANY LOWER NOR
ATTENTION TO DETAIL ANY LESS
EXACTING DIGITAL PUBLISHING
ALLOWS US TO PRODUCE NEWS
COVERAGE THAT'S AS URGENT OR
NECESSARY AS ANY STATEWIDE OR
NATIONAL PUBLICATION. BUT WE
NEED RELIABLE RESOURCES TO
CONTINUE PUBLISHING LOCAL NEWS
NEEDS INVESTMENT AND COMMITTED
FUNDING TO ENSURE THAT THE NEEDS
OF SMALLER COMMUNITIES WILL
CONTINUE TO BE SERVED WHEN 2000
PRESIDENTS READ ONE OF OUR
ARTICLES, THAT MEANS A
SIGNIFICANT PORTION OF ALAMEDA
LEARNS ABOUT A LOCAL ISSUE THAT
WOULD OTHERWISE GO UNREPORTED.
BUT THOSE SAME 2000 IMPRESSIONS
ON SOCIAL MEDIA SITES ARE A DROP
IN THE BUCKET COMPARED TO THE
MILLIONS GENERATED BY CLICK BAIT
FROM PUBLISHERS WITH GREATER
REACH. GETTING MORE CLICKS AND
IMPRESSIONS DOES NOT ACCURATELY
CORRELATE TO THE VALUE OF
CONTENT TO SMALLER COMMUNITIES.
THERE ARE BETTER WAYS TO
ALLOCATE REVENUE BIG TECH
COMPANIES GAINED BY ADVERTISING
AGAINST OTHER PUBLISHERS CONTENT
. WE SUGGEST TAXING ADVERTISING
REVENUE TO CREATE A PUBLIC FUND
THAT WOULD SUPPORT PUBLICATIONS
BASED ON NEED VALUE TO THE
COMMUNITIES THEY SERVE WITH
GUARANTEED MINIMUM PAYMENTS
INSTEAD OF BASED ON THE NUMBER
OF CLICKS AND IMPRESSIONS THEY
RECEIVE. AND WE ENCOURAGE
CREATING TAX CREDITS FOR
NEWSROOM PAYROLLS AS WELL AS FOR
SMALL BUSINESS ADVERTISERS.
THESE SOLUTIONS WOULD PROVIDE
REAL FUNDING FOR LOCAL NEWS AND
SUPPORT FOR SMALLER COMMUNITIES.
JOURNALISM IN THE DIGITAL AGE IS
EQUALLY AS IMPORTANT AND FRAUGHT
WITH PERIL AS IT WAS IN THE
PRINT ERA. LOCAL NEWS IS IN
CRISIS. PEOPLE ALWAYS WANT TO
KNOW WHAT HAPPENED AND HOW IT
AFFECTS THEM. THE STEADY
EXTINCTION OF LOCAL NEWS MEDIA
HAS NOT QUENCHED THAT THIRST.
SMALL COMMUNITIES NEED LOCAL
NEWS SOURCES LIKE THE ALAMEDA
POST THAT THEY CAN TRULY RELY
UPON OR THE VACUUM WILL BE
FILLED BY THOSE WITH LESS CIVIC
MINDED INTENTIONS. DIGITAL
PUBLISHING AND UNRESTRICTED
ACCESS TO DIGITAL CONTENT ARE
ESSENTIAL TO PROVIDING RELIABLE,
TRUSTWORTHY JOURNALISM TO ALL
COMMUNITIES, NOT JUST THE CITY
OF ALAMEDA. I URGE YOU TO JOIN
US TO SUPPORT AND FOSTER THE
GROWTH OF LOCAL NEWS THROUGHOUT
CALIFORNIA. PLEASE PREVENT OUT
OF STATE PUBLISHERS IN THE
LARGEST PLATFORMS FROM GAINING A
FINANCIAL WINDFALL AT THE
DISADVANTAGE OF THE SMALLEST
NEWSROOM. INSTEAD WE ENCOURAGE
YOU TO CREATE SOLUTIONS THAT
WILL FUND LOCAL NEWS THROUGHOUT
THE STATE. GIVE IT YES. THANK
YOU, MR DILLON. THANK YOU VERY
MUCH. NEXT MISS MARTHA DIAZ
ASKING. GOOD AFTERNOON, CHAIRMAN
AND MEMBERS OF THE COMMITTEE. MY
NAME IS MARTHA DIAZ AND I'M, THE
PUBLISHER OF THE SAN FERNANDO
VALLEY SON. ALSO NEWSPAPER, A
FREE COMMUNITY BILINGUAL WEEKLY
NEWSPAPER THAT CIRCULATES IN THE
SAN FERNANDO VALLEY AND HAS BEEN
DOING SO SINCE 1904. SO IT'S A
IT'S BEEN AROUND FOR A LONG TIME
WITNESSED THE BIRTH OF THE SAN
FERNANDO VALLEY. UM I AM ALSO
THE TREASURER OF THE NATIONAL
NEWSPAPER ASSOCIATION. I'M, A
BOARD MEMBER OF THE CALIFORNIA
NEWS PUBLISHERS ASSOCIATION, AND
I'M, A MEMBER OF THE LATINO
MEDIA COLLABORATIVE. I PURCHASED
THE PAPER 20 YEARS AGO. AND IN
THAT TIME, UM COVERED COUNTLESS
IMPORTANT NEWS AND REALLY HAVE
RAP MORALE AROUND THIS MODEL
THAT IT'S THIS IS A MISSION
DRIVEN. TYPE OF ENDEAVOR. YOU
KNOW, YOU HAVE TO LOVE WHAT YOU
DO, AND YOU HAVE TO RESPECT
THAT. IT IS, UM, A LIVING KIND
OF ORGANISM THAT I HAVE
INHERITED FOR NOW AND THAT I'M
I'M THE CARETAKER. TO COMPETE.
WE'VE DONE WHAT PEOPLE HAVE SAID
WE SHOULD DO. WE CREATED A
WEBSITE. I THINK WHICH IT LOOKS
PRETTY GOOD AND WE GET YOU KNOW
SOME TRAFFIC, BUT I MEAN, IT'S
PROBABLY 25,000 PEOPLE, BUT
THAT'S NOT ENOUGH. YOU KNOW, TO
MAKE MONEY. WE HAVE FACEBOOK AND
YES, MADAM USED TO SHUT
SOMETHING DOWN BECAUSE WE USED
TO GET ALL KINDS OF TRAFFIC
BEFORE AND I DON'T UNDERSTAND
WHY SOME STORIES GET A TON OF
VISIBILITY AND OTHERS DON'T IF
YOU WANT TO GET ANY CUSTOMER
SERVICE, YOU WRITE TO SOMEBODY
AND YOU HOPE THEY GET BACK TO
YOU. SO AS THE LITTLE GUY YOU
KNOW, IN THIS BIG ECOSYSTEM I
KIND OF DON'T STAND A CHANCE. I
NEED SOME HELP. I'M DOING THE
WORK THAT NEEDS TO BE DONE. BUT
I CAN'T UNDERSTAND WHY SOMEBODY
TELLS ME YOU'VE GOTTA DO
IMPRESSIONS. IMPRESSIONS OF THE
THING TO GO BECAUSE EVERYBODY
MAKES MONEY ON THAT. SO WE DON'T
WRITE FOR CLICKS. NEVER WILL.
BUT YOU KNOW, WE GET THE
IMPRESSIONS. THE MONEY IS NOT
THERE. I MAKE MONEY OFF OF
DISPLAY ADS. IF I DIDN'T PRINT
MY PAPER, AND IF YOU HAVEN'T
SEEN A PRINTED PAPER IN A LONG
TIME, THEY DO EXIST. HERE IT IS.
IS EVERYBODY ALRIGHT? I BROUGHT
TWO ISSUES. I BROUGHT SOME FOR
EVERYBODY. OKAY, SO I MEAN, WE
ARE HERE AND WE ARE REALLY
IMPORTANT IN OUR COMMUNITIES.
BUT AGAIN ON FACEBOOK. WE USED
TO MAKE MONEY, AND THEN THEY
INVITED ME TO A BONUS PROGRAM.
WHICH BONUS MEANS ABSOLUTELY AT
THEIR DISCRETION. SO I'M ALL IN
SAID OKAY, I'M GONNA DO THE
BONUS PROGRAM. AND WHAT HAPPENS?
I THINK I MADE $192.01 MONTH.
AND THEN I MADE ANOTHER 200
ANOTHER MONTH. AND THEN I MADE
CLOSE TO 300. THEN THEY SHUT ME
DOWN. I DON'T KNOW WHY. I CAN'T
ASK THEM WHY, BUT I'M NO LONGER
IN THE PROGRAM, SO MAYBE I DID
SOMETHING WRONG. I'VE WRITTEN.
ALL KINDS OF MY STAFF HAS
WRITTEN ALL KINDS OF STORIES
ABOUT A LOT OF DIFFERENT ISSUES
AND THERE ARE MIGHTY AND THEY
ARE. SO COURAGEOUS COVER ALL THE
NEWS THAT COME OUR WAY DURING A
NEWS CYCLE, AND THAT'S TOUGH
BECAUSE THAT MEANS THAT MY SMALL
AND MIGHTY STAFF HAS TO COVER
ALL KINDS OF BEATS. AND THAT'S
NOT SOMETHING THAT OTHER LARGER
NEWSPAPERS HAVE TO DO. AND WE
ARE HOLDING THE LINE. WE ARE
COVERING OUR COMMUNITY, IF NOT
FOR OUR PAPER, THE NORTHEAST SAN
FERNANDO VALLEY STORIES WOULD GO
UNWRITTEN AND UNTOLD. YOU WOULD
NOT KNOW THAT PERHAPS IN OUR
COMMUNITY DURING THE PANDEMIC.
WE WERE THE EPICENTER. FOR
DEATHS. YOU KNOW IN THE NATION
THAT WAS BIG. WE'VE BEEN THE
COMMUNITY THAT WE CONCENTRATE IN
WHICH IS THE NORTHEAST VALLEY
HAS BEEN DEEMED AT RISK BY THE
STATE OF CALIFORNIA. SO I THINK
YOU ALL KNOW WHAT THAT MEANS AS
WELL. SO WE'RE THERE TO TELL THE
STORIES DAY IN AND DAY OUT OF
WHAT HAPPENS. AND JUST RECENTLY
WE HAD NATIONAL UGLINESS COME TO
THE CITY OF SAN FERNANDO. UM
PICKLE. THE DRAG QUEEN WAS GOING
TO READ TO CHILDREN IN A PUBLIC
LIBRARY. AND SHE, UM, WAS DENIED
BECAUSE A GROUP OF PEOPLE CAME
IN FROM OUTSIDE THE COMMUNITY
AND SHUT US DOWN. THEY DIDN'T
LET HER READ AND THEY WERE
PEOPLE WITH RECORDS. I WAS
TALKING. I DIDN'T EVEN KNOW WHAT
DOC'S MEN UNTIL I GOT DOGS BY A
PROUD BOY. I DIDN'T KNOW I WAS
FACING DOWN A PROUD BOY. UNTIL
LATER. AND SO THESE PEOPLE CAME
IN TO CHANGE THE NARRATIVE THAT
THIS COMMUNITY IS ANTI LGBT GAY
AND THEY DIDN'T LGBT Q. AND THEY
DID NOT WANT PICKLE TO BE THERE.
BUT THAT'S NOT TRUE. IT WASN'T
THEM BECAUSE OF OUR COVERAGE IN
A SUBSEQUENT MEETING AT THE CITY
COUNCIL, THE OTHER SIDE OF
PEOPLE CAME AND SHUT THEM DOWN.
AND THEN I KNOW WE'RE DOING OUR
JOB. WHEN I GO TO THE MEANS IT'S
A MEXICAN BAKERY. AND THE LADY
THERE SAYS HEY, CAN I ASK YOU A
QUESTION? AND I SAID YES, SHE
SAYS. THOSE PEOPLE THEY WEREN'T
FROM OUR COMMUNITY. WERE THEY
THAT YOU REPORTED ON I SAID NO,
THEY AREN'T, SHE SAYS, BECAUSE I
DIDN'T RECOGNIZE ANYONE. ONE OF
THEM, SO I KNOW THAT YOU'RE
DOING THE RIGHT THING. SO TO ME,
THAT'S VALIDATION THAT I'M DOING
THE RIGHT THING THAT I'M
BRINGING THE NEWS TO THE
COMMUNITY, BUT I CAN'T DO THAT
WITHOUT MONEY. OKAY. MY STAFF
NEEDS TO GET PAID. I HAVE THREE
REPORTERS AND ONE FROM THE
FELLOWSHIP FROM BERKELEY. THANK
YOU VERY MUCH, MUCH APPRECIATED.
I GET SOME GRANTS. I HAVE GOTTEN
SOME GRANTS, ALSO FROM GOOGLE
AND META, IN FAIRNESS DURING THE
PANDEMIC, AND THEY CAME, YOU
KNOW, WITH NO STRINGS. IT'S
GREAT $5000 HERE, $5000 THERE.
IT REALLY DID HELP. RECENTLY I
WAS INVITED TO JOIN AN
ORGANIZATION. UM BECAUSE I WAS
TOLD THAT IF I JOINED, I WOULD
GET 12 $20,000 FROM FROM GOOGLE.
UM RECENTLY THAT SAME
ORGANIZATION VOTED TO OPPOSE ANY
LEGISLATION THAT CAME THEIR WAY.
AND I THOUGHT, WELL, I CAN'T. I
CAN'T. I CAN'T PROMOTE THAT
BECAUSE I THINK THERE'S SOME
MONEY LEFT THERE. SO I AM LIKE I
SAID AT THE MERCY OF YOU ALL TO
HELP ME OUT. I AM A TRUSTED
MESSENGER. PEOPLE LOOK TO US FOR
COVERAGE. WE'RE BOOTS ON THE
GROUND. PEOPLE RECOGNIZE ME AND
MY STAFF WHEN WE'RE OUT THERE
AND THEY WRITE TO US, AND THEY
TELL US HOW ABOUT COVERING THIS
COVERING THAT? IF I'M NOT THERE
IF OUR PAPER IS NOT THERE. I
THINK THIS COMMUNITY'S VERY
IMPORTANT STORIES WOULD GO
UNTOLD. SO THANK YOU FOR WHAT
YOU DO. I DON'T HAVE A LOT OF
ANSWERS. I HAVE A LOT OF
QUESTIONS, AND I NEED A LOT OF
HELP. SO THANK YOU VERY MUCH.
THANK YOU. MR. I ACTUALLY KNOW
HOW TO OPERATE THAT THE ITEM YOU
HAD HOLED UP. YOU HELD UP. UH
FOR SOME OF OUR YOUNGER MEMBERS,
YOU MAY WANT TO ILLUSTRATE.
YEAH. ALRIGHT. YEAH. ALL RIGHT.
I'M GONNA. EXERCISE THE CHAIR'S
PREROGATIVE, AND I'M GONNA CALL
THE NEXT WITNESS OUT OF ORDER.
I'M GONNA ASK MS SCHOPP ENBERG
TO TESTIFY NOW, AND THE REASON
BEING IS THAT SENATOR GLASER
THANK YOU VERY MUCH. SENATOR
GLAZER FOR TRAVELING DOWN HERE
HAS TO LEAVE AND HE IS THE
AUTHOR. GOING TO DISCUSS HERE IN
JUST A SECOND. SO THANK YOU.
SURE. I'M KRISTA SCHARFFENBERGER
, PROJECT DIRECTOR FOR THE
CALIFORNIA LOCAL NEWS FELLOWSHIP
PROGRAM AT BERKELEY. JOURNALISM.
THANK YOU FOR INVITING ME TO
SPEAK TODAY. LOCAL NEWS
CONTINUES TO FIGHT FOR ITS LIFE
AS REFERENCED IN THE LAST PANEL,
NORTHWESTERN UNIVERSITY'S 2023
STATE OF LOCAL NEWS REPORT MAPS
NEWS DESSERTS IN 204 COUNTIES
ACROSS THE COUNTRY AND
IDENTIFIES HUNDREDS MORE AT
RISK. LIKE THE NATION,
CALIFORNIA'S LOCAL NEWS
ECOSYSTEM IS FRAGILE AS YOU'VE
BEEN HEARING TODAY. THE SAME
REPORT REVEALS THAT FOUR OF OUR
STATES 58 COUNTIES HAVE NO NEWS
OUTLET, BUT ANOTHER 11 HAVE JUST
ONE AND IT'S ALL GOING IN THE
WRONG DIRECTION. UNLIKE MUCH OF
THE COUNTRY, CALIFORNIA'S
TESTING OUT A PROMISING NEW
MODEL TO SUPPORT LOCAL NEWS, ONE
THAT COULD BE A SOLID FIRST STEP
FOR SKEPTICS OF PUBLIC FINANCING
OF JOURNALISM. THE CALIFORNIA
LOCAL NEWS FELLOWSHIP, BASED AT
THE UC BERKELEY GRADUATE SCHOOL
OF JOURNALISM, LAUNCHED A YEAR
AGO WITH $25 MILLION IN STATE
FUNDING. IT WAS SPEARHEADED BY
SENATOR GLATER. THANK YOU VERY
MUCH FOR ALL GRATEFUL. THE
FELLOWSHIP AIMS TO DIRECTLY MEET
INFORMATION NEEDS IN COMMUNITIES
ACROSS THE STATE AND TO SUPPORT
THE NEXT GENERATION OF
JOURNALISTS AS THEY LAUNCH THEIR
CAREERS. CURRENT FUNDING COVERS
THREE COHORTS OF UP TO 40
JOURNALISTS FOR A TOTAL OF 120
FELLOWS TO WORK IN LOCAL
NEWSROOMS FOR TWO YEARS EACH,
THE UNIVERSITY OFFERS FULL TIME
SALARIES AND BENEFITS, ALONG
WITH EXTENSIVE TRAINING,
MENTORING AND SUPPORT TO GUIDE
THE FELLOWS. TO LEAD THE PROGRAM
AND HELP SELECT THE COHORT WE
BUILT AND COHORTS EXCUSE ME, WE
BUILT AN ADVISORY BOARD OF 17
LEADERS FROM NEWSROOMS AND
JOURNALISM EDUCATION PROGRAMS
ACROSS THE STATE. THE SEPTEMBER
WE SENT THE FIRST COHORT OUT
INTO THE FIELD. OUR PARTNER
NEWSROOMS INCLUDE ETHNIC MEDIA
OUTLETS, NEWSPAPERS, NONPROFIT
DIGITAL SITES, PUBLIC RADIO
STATIONS AND TWO NEWSROOMS THAT
TRAIN YOUNG PEOPLE TO REPORT
ALONGSIDE PROFESSIONAL
JOURNALISTS. MANY OF OUR
ADVISORY BOARD MEMBERS AND
PARTNER NEWSROOMS ARE HERE
TODAY, INCLUDING 4/5 OF THIS
PANEL. UH THE FELLOWS ARE ALL
EARLY CAREER JOURNALISTS. THEY
GENERALLY MIRROR THE RACIAL AND
ETHNIC DEMOGRAPHICS OF OUR STATE
. NEARLY ALL OF THEM ATTENDED
PUBLIC UNIVERSITIES IN
CALIFORNIA FOR THEIR
UNDERGRADUATE AND GRADUATE
DEGREES. MANY ARE THE FIRST IN
THEIR FAMILIES TO HAVE ATTENDED
COLLEGE. MOST ARE IN THEIR
TWENTIES AND THIRTIES. BUT IF
YOU FELLOWS HAVE SPENT DECADES
IN OTHER FIELDS AND ARE NOW
SWITCHING CAREERS IN OUR
APPLICATION. WE ASK PARTNER
NEWSROOMS TO IDENTIFY THE
FELLOWS REPORTING BEATS OUR
COVERAGE AREAS, THE ONLY
STRICTURE IN RESTRICTION WE
PLACES THAT THE FELLOWS MUST BE
FOCUSED ON LOCAL PUBLIC AFFAIRS,
REPORTING THE KIND OF JOURNALISM
THAT PROVIDES CITIZENS AND
VOTERS WITH THE INFORMATION THEY
NEED TO EFFECTIVELY PARTICIPATE
IN CIVIC LIFE. THE FELLOWS ARE
COVERING CITY COUNCILS IN
SILICON VALLEY IN SAN DIEGO,
ENVIRONMENTAL AND LABOR ISSUES
IN THE INLAND EMPIRE DISASTER
PREPAREDNESS IN THE SAN
FRANCISCO BAY AREA, MARGINALIZED
COMMUNITIES AND ARCADIA AND
ORANGE COUNTY, THE INDIAN
AMERICAN DIASPORA IN SAN JOSE,
RACIAL DISPARITIES AND
SACRAMENTO NEIGHBORHOODS AND
FARMWORKER COMMUNITIES IN GILROY
AND HALF MOON BAY. IN JUST A FEW
MONTHS SINCE THE FIRST COHORT
LAUNCHED, THE FELLOWS HAVE
WRITTEN AND PRODUCED HUNDREDS OF
STORIES REPORTING ON A PROPOSED
NEW JAIL IN SANTA CRUZ,
VIOLATIONS OF STATE AND FEDERAL
HEALTH AND SAFETY STANDARDS AT
THE NOW BANKRUPT MADEIRA
COMMUNITY HOSPITAL. THE RACE TO
CONTROL VAST LITHIUM STORES
UNDER THE SALTON SEA AND
IMPERIAL VALLEY AND DISPARITIES
IN PUBLIC PARKS INVESTMENT
ACROSS NEIGHBORHOODS IN SAN
DIEGO. MANY OF THE FELLOWS MOVED
TO NEW CITIES AND TOWNS FOR THIS
PROGRAM. THEY'RE KEENLY FOCUSED
ON ACCURATELY REPRESENTING AND
REACHING THE PEOPLE. THEY'RE
THERE TO SERVE. SEPTEMBER
ORIENTATION. THE NUMBER ONE HOPE
THE FELLOWS EXPRESSED WAS THAT
THEY WOULD BE ABLE TO AS THE
FELLOW WHO'S AT MARTHA'S OUTLET
SAID, PORTRAY THE PEOPLE IN THE
WAY THEY DESERVE TO BE
PORTRAYED. THE FELLOWS ARE A
SOURCE OF DEEP HOPE AND
INSPIRATION AT A TIME WHEN TRUST
IN JOURNALISM IS AT AN ALL TIME
LOW. SELECTION OF THE NEXT
COHORT IS UNDERWAY NOW SO BY
THIS TIME NEXT YEAR WILL HAVE
APPROXIMATELY 80 FELLOWS WORKING
IN 80 OUTLETS AROUND THE STATE.
BUT HOW WILL WE KNOW THE PROGRAM
IS MAKING A DIFFERENCE THIS
MONTH? WE'RE LAUNCHING A FORMULA
VALUATION TO TRACK OUR IMPACT ON
THE FELLOWS IN NEWSROOMS. BUT
MOST IMPORTANTLY ON THE
COMMUNITIES WHERE THE FELLOWS
ARE SERVING OUR INFORMATION
NEEDS BEING BETTER MET. ARE
THERE SIGNS OF INCREASED CIVIC
PARTICIPATION? ARE THERE
SPECIFIC IMPACTS WE CAN POINT TO
THAT ARE DIRECT RESULT OF THE
FELLOWS REPORTING. WE'LL BE
ANSWERING ALL OF THOSE QUESTIONS
AND PLAN TO SHARE OUR FINDINGS
AND AS WE LEARN MORE TO ENSURE
THE PROGRAM IS FULFILLING ITS
PROMISE TO CALIFORNIANS. SO IT'S
STILL EARLY DAYS, THE FELLOWS
HAVE BEEN IN THEIR NEWSROOMS FOR
JUST THREE MONTHS, BUT I WANTED
TO SHARE A FEW REFLECTIONS THAT
WE'VE HAD SO FAR. FIRST THE
JOURNALISM SECTORS COMFORT WITH
PUBLIC FUNDING OPTIONS, I THINK
IS INCREASING. I'M CONCERNED
ABOUT EDITORIAL, INTEGRITY AND
INDEPENDENCE HAS LONG FUELED
RESISTANCE TO GOVERNMENT FUNDING
OF NEWS IN THIS COUNTRY. BUT
WHEN I SET OUT LAST YEAR TO
SPEAK WITH NEWS OUTLETS ACROSS
THE STATE, I WAS DEEPLY
SURPRISED BY THE GROUP. THE
DEGREE TO WHICH THIS PUBLICLY
FUNDED PROGRAM WAS EMBRACED, AND
I THINK THERE'S TWO MAIN REASONS
FOR THAT. THE FIRST IS THAT
PEOPLE SEEM TO TRUST THE PUBLIC
UNIVERSITY JOURNALISM PROGRAM TO
PROVIDE A FIREWALL BETWEEN THE
FUNDING SOURCE AND THE REPORTING
PROCESS. BUT SECOND AS YOU'VE
HEARD TODAY, NEWSROOMS ARE BEING
GUTTED, AND THIS PROGRAM IS
AIMED DIRECTLY WHERE THE NEED IS
GREATEST AT PAYING FOR FULL TIME
ON THE GROUND, LOCAL REPORTERS
THE SECOND THING WE'VE NOTICED
IS THAT ALL NEWSROOMS ARE
STRUGGLING TO MAINTAIN THEIR
LOCAL REPORTING RANKS WERE
WORKING WITH A BROAD RANGE OF
OUTLETS FROM 1 TO 2 PERSON CHOPS
TO LARGE PAPER SERVING MAJOR
METRO AREAS. ALL OF THEM ARE
FACING THE SAME EXTREME
FINANCIAL AND HUMAN RESOURCE
PRESSURES. AROUND THE TIME OUR
PROGRAM LAUNCHED THIS FALL, TWO
OF THE NEWSPAPERS WERE WORKING
WITH WERE UNDERGOING OR MANAGING
THE AFTERMATH OF MAJOR LAYOFFS.
ONE PUBLIC RADIO STATION WAS AND
CONTINUES TO FACE AN ONGOING
VERY PUBLIC FINANCIAL CRISIS.
AND SOME OF OUR SMALLER PARTNER
NEWSROOMS IN SOME OF OUR SMALLER
PARTNER. NEWSROOMS THE LOCAL
NEWS FELLOW IS THE FIRST FULL
TIME REPORTER THEY'VE HAD IN
YEARS. EVERY OUTLET, WHETHER
THEY'RE CORPORATE OWNED,
NONPROFIT OR FAMILY RUN, IS
FACING THE SAME CORE CHALLENGE,
WHICH THE FELLOWSHIP PROGRAM
SEEKS TO ADDRESS OF MAINTAINING
ENOUGH REPORTING CAPACITY TO
FULFILL THEIR CORE MISSION.
FINALLY WE'VE REALLY SEEN THE
WAYS THAT LOCALLY RUN NEWSROOMS
UNDERSTAND THEIR COMMUNITIES.
INFORMATION NEEDS BEST NATIONAL
OR REGIONAL NEWS ORGANIZATIONS
OFTEN SOUP IN TO REPORT. AND
ONLY THE MOST SENSATIONAL OR
CONTROVERSIAL STORIES AND LEAVE
BEFORE THE TRUE IMPACT ON THE
COMMUNITY UNFOLDS. LOCAL
NEWSROOMS KNOW THAT STORY'S WHAT
KNOW WHAT STORIES MATTER MOST TO
THEIR RESIDENTS, AND THEY STAY
ON THEM OVER TIME. THIS IS TRUE
FOR COMMUNITY AND ETHNIC MEDIA
OUTLETS THAT WERE FOUNDED TO
SERVE AUDIENCES OFTEN OVERLOOKED
BY MAINSTREAM MEDIA. BUT IT'S
ALSO TRUE FOR THE LARGER
MAINSTREAM OUTLETS. MOST ARE
DEPLOYING THE FELLOWS FROM OUR
PROGRAM TO REACH AUDIENCES THAT
THEY HAVEN'T TRADITIONALLY
SERVED. THE FELLOWSHIP PROGRAM
PROVIDES RESOURCES TO EXPAND AND
DEEPEN COVERAGE TO TAKE ON NEW
REPORTING BEATS AND TO COVER
PREVIOUSLY IGNORED COMMUNITIES.
SO THERE'S NO ONE SIZE FITS ALL
SOLUTION TO THE CRISIS FACING
THE INDUSTRY, AS WE'VE HEARD
TODAY, THAT SAID THE FELLOWSHIP
MODELS GAINING TRACTION BEYOND
CALIFORNIA AND APPEARS TO BE A
PROMISING WAY TO TEST THE ROLE
OF PUBLIC FINANCING AND SHORING
UP LOCAL NEWS WITH THE RIGHT
GUARD RAILS IN PLACE. CONCERNS
ABOUT EDITORIAL INDEPENDENCE CAN
BE ASSUAGED. I THINK, JUST AS
THE INFLUENCE OF CORPORATE
ADVERTISERS HAS BEEN MANAGED IN
NEWSROOMS FOR DECADES. INSPIRED
BY OUR PROJECT, WASHINGTON STATE
AND NEW MEXICO FUNDED SIMILAR
PROGRAMS THIS YEAR AND REPORTING
FELLOWSHIPS ARE UNDER
CONSIDERATION AND OTHER STATES
AS WELL. OUR HOPE IS THAT
POLICYMAKERS AND USE LEADERS AND
CITIZENS BEGIN TO SEE THE
JOURNALISTIC FRUITS OF THESE
EFFORTS TO INVIGORATE LOCAL NEWS
. THERE WILL BE GROWING DESIRE
TO DEVELOP A RANGE OF PUBLIC
POLICY MEASURES THAT ADDRESS THE
NEWS CRISIS FROM A VARIETY OF
ANGLES. SO A SENATOR GLAZER HAS
SAID THERE'S NO BUILT IN
CONSTITUENCY FOR DEMOCRACY OR
FOR JOURNALISM. IT'S UP TO THOSE
OF US WHO CARE TO EXPLORE AND
TEST ALL POSSIBLE BUSINESS MODEL
INPUTS IN ORDER TO ENSURE A
THRIVING NEWS ECOSYSTEM, AND WE
HOPE THE CALIFORNIA LOCAL NEWS
FELLOWSHIP IS A MEANINGFUL START
TO THAT. THANK YOU, MR
SARDENBERG. ALRIGHT, SO, UM I'M
GONNA AGAIN EXERCISE THE CHAIR'S
PREROGATIVE. WE'RE GONNA DO
THINGS A LITTLE DIFFERENTLY
HERE. I'M GOING TO TURN TO
SENATOR GLAZER. AND THEN IF THE
SENATOR GLASER, I'M GOING TO ASK
FOR SOME MEMBER WITS TO PROVIDE
PUBLIC COMMENT IN MY APOLOGIES.
THANK YOU FOR YOUR PATIENCE, MR.
SO CENTER BLAZER. THANK YOU.
CHAIR AMBERG. I JUST WANT TO SAY
A COUPLE OF BRIEF THINGS ONE TO
THE DIRECTOR OF THIS PROGRAM
DIRECTORS SHARPEN BERG. THANK
YOU FOR YOUR LEADERSHIP. THANK
YOU, TOO. DEAN R NIN FROM THE
BERKELEY JOURNALISM SCHOOL FOR
HER LEADERSHIP. AND OF COURSE,
THE JOURNALISM SCHOOLS
THROUGHOUT CALIFORNIA HAVE BEEN
PARTNERS OF YOURS AND YOUR
ADVISORY BOARD AND I THINK THE
POINT THAT YOU MADE EARLIER
DESERVES TO BE REINFORCED NO
GOVERNMENT INVOLVEMENT. AND THE
CHOICES THAT YOU'VE MADE IN THE
NEWSROOMS YOU'VE SELECTED THAT
THESE FELLOWS ARE OUT THERE
REALLY MAKING A BIG DIFFERENCE,
AND I'M SO EXCITED ABOUT THE
PROGRAM. UM AND I KNOW IT'S PART
OF THE SOLUTION. THERE'S A LOT
THAT GOES INTO US TRYING TO
FIGURE OUT WHAT WE'RE GOING TO
DO GOING FORWARD. BUT I KNOW AT
THE HEART OF IT FOR ME IS WHAT
THIS PROGRAM IS DOING CIVIC
JOURNALISM ON THE GROUND IN
COMMUNITIES, PROVIDING THE EYES
AND EARS AND INDEPENDENCE THAT
OUR DEMOCRACY NEEDS AND REQUIRES
, AND SO AS WE WORK TOGETHER ON
THAT, AND I'M EXCITED ABOUT
WORKING WITH THE SAME REMEMBER
WICKS THE CHAIR, HAMBURG AND
OTHERS THAT FOR ME, THIS IS THE
HEART OF IT. STAY FOCUSED ON
THIS. THIS IS WHAT WE NEED TO
SUPPORT AND THERE'S LOTS OF WAYS
TO FIGURE IT OUT AND DO IT. BUT
WE HAVE TO DO IT. THANK YOU.
THANK YOU, SENATOR. GREAT. THANK
YOU FOR LEADERSHIP IN THIS
SPACE. UM ALRIGHT. SO HERE'S
WHAT WE'RE GONNA DO. NOW I'M
GONNA ASK ASSEMBLY MEMBER WHIPS.
UM WHO'S HERE? PROVIDE PUBLIC
COMMENT WILL HAVE THANK YOU. AND
I WOULD DO THIS EVEN IF YOU
WEREN'T NEWLY APPOINTED CHAIR OF
US ASSEMBLY APPROPRIATIONS. SO
SURE, SURE. WELL, MAYBE MAYBE. I
DON'T KNOW, BUT I DON'T KNOW. IF
I DON'T HAVE TO MAKE THAT
DECISION. WELL, I APPRECIATE
THAT. I'LL LEAVE THE IT WAS FUN
TO SIT IN THE JURY BOX AND SITS
IN JUDGMENT OF EVERYONE DURING
THIS WHOLE THING. FIRST TIME
I'VE EVER BEEN IN A JURY BOX
FIRST. I WANT TO THANK THE CHAIR
FOR THIS CONVERSATION. I KNOW
THESE THINGS AREN'T EASY TO DO.
WE'RE ALL BUSY DURING INTERIM,
SO I JUST REALLY DEEPLY
APPRECIATED. I KNOW IN OUR
CONVERSATIONS AS WE WERE
DISCUSSING THESE TOPICS, WE
ULTIMATELY HELD A BILL THAT'S IN
THIS SPACE AND THE CONVERSATION
WAS, BUT LET'S KEEP THE
CONVERSATION GOING PUBLICLY
BECAUSE THIS IS SO IMPORTANT FOR
ALL THE REASONS THAT HAVE BEEN
DISCUSSED. I THINK THE ONE THING
I'M OPTIMISTIC ABOUT IS THERE
WAS GENERAL AGREEMENT THAT
SOMETHING'S NOT WORKING HERE
WITH REGARD TO OUR PUBLISHERS
AND OUR NEWS, MEDIA'S AND OUR
OUTLETS, AND THAT WE HAVE TO DO
SOMETHING, AND I ALSO WANT TO
THANK SENATOR GLAZER FOR YOUR
WORK IN THIS SPACE THERE, NOT A
LOT OF LEGISLATORS WHO HAVE
ACTUALLY ARE LEGISLATING IN THIS
AND PRIORITIZING IT FROM A
BUDGET POINT OF VIEW, SO THANK
YOU FOR THAT. AND OBVIOUSLY
SENATOR ASHBY AND SENATOR ALAN
FOR BEING HERE TODAY YOU ARE
SOME OF THE VERY THOUGHTFUL
LEGISLATORS. AND SO I EMPLOY YOU
ALL TO WORK IN PARTNERSHIP WITH
ME AND OTHERS ON TRYING TO FIND
THE RIGHT SOLUTION. AND I DON'T
COME TO THIS TRYING TO BE
PUNITIVE TOWARDS TECH COMPANIES.
I'M NOT IN THE POCKET OF THE
PUBLISHERS. I DON'T CARE ABOUT
RUPERT MURDOCH AND HEDGE FUND
PAPERS. WHAT I CARE ABOUT IS OUR
DEMOCRACY. AND WHEN WE HAVE 100
PUBLICATIONS IN THE LAST 10
YEARS WHO ARE NO LONGER EXIST,
WE HAVE THESE BRIGHT SPOTS OF
HOPE HERE AND LANCE. I WANT TO
DO A SHOUT OUT TO BERKELEY SIDE
IN OAKLAND, OAKLAND, OAKLAND
SIDE AND NEW RICHMOND SIDE.
THOSE ARE IN MY DISTRICT. THE
WORK THAT THEY ARE DOING IS
INCREDIBLE. THERE'S ALSO
INCREDIBLE WORK BEING DONE BY
THE L A TIMES AND I THINK
THERE'S ROOM AND SPACE FOR ALL
OF THESE PUBLICATIONS TO THRIVE,
AND IN FACT, I WANT THEM ALL TO
THRIVE AND EXIST AND WHAT I
DISCOVERED IN THIS CONVERSATION
IS THE FACT THAT NOT THE MEDIA
LANDSCAPE IS NOT ON THE SAME
PAGE ON THIS, BUT WE HAVE TO
CREATE AN ENVIRONMENT WHERE WE
HAVE NOT JUST THE BIG
PUBLICATIONS. BUT THE SMALL,
NONPROFIT PUBLICATIONS, THE
ETHNIC MEDIA, THE BLACK MEDIA,
WHO, BY THE WAY THAT I THINK
MEETING THE BLACK MEDIA PLAY
SUCH AN IMPORTANT ROLE IN OUR
COMMUNITIES, AND IN MANY
UNITIES. THEY DON'T TRUST ANYONE
ELSE BUT THEIR LOCAL ETHNIC
PAPER, AND SO THAT IS VERY
CRITICAL TO HAVE THEM AT THE
TABLE WHEN WE'RE HAVING THESE
CONVERSATIONS, AND SO I'M NOT
GOING TO COME HERE WITH ALL
THESE ANSWERS. I COME HERE WITH
A LOT OF QUESTIONS, BUT I DO
BELIEVE I'M OPTIMISTIC SEEING
WHAT HAS HAPPENED. WE CAN LEARN
FROM WHAT HAS HAPPENED IN
AUSTRALIA. WE CAN LEARN FROM
WHAT HAS HAPPENED IN CANADA AND
WHAT OUR FEDERAL POLICYMAKERS
ARE ATTEMPTING TO DO TO CREATE
THE BEST PUBLIC POLICY HERE IN
CALIFORNIA THAT ENSURES THAT OUR
NEWSROOMS ARE THRIVING. AND THAT
IS WHAT I AM COMMITTED TO, AND I
WANT TO WORK WITH EVERYONE HERE
AND ALL THE STAKEHOLDERS TOWARDS
THAT AND TO MAKE SURE THAT WE'RE
DOING EXACTLY JUST THAT, AND I
ALSO WANT TO THANK GOOGLE FOR
BEING HERE. THIS ISN'T AN EASY
PLACE FOR YOU ALL TO VIETNAM.
YOU AND I HAVE HAD SOME OF THESE
CONVERSATIONS AND I EVEN WROTE
DOWN AND YOU SAID YOU WANT TO
WORK TOGETHER. I QUOTED THAT AND
I WANT TO WORK WITH YOU AS WELL.
UM ON ON WHAT THE SOLUTION COULD
BE. IT'S UNFORTUNATE MEDICINE.
NOT HERE. TODAY I HAVE AN OPEN
DOOR AS ALWAYS WITH META AND
IMPLORE THEM TO COME AS WELL
BECAUSE ULTIMATELY THE END OF
THE DAY. OKAY? YOU ALL HAVE TO
HOLD PEOPLE LIKE MS FEET TO THE
FIRE. THAT IS YOUR JOB, AND
WE'RE NOT SEEING THAT AT THE
LOCAL LEVEL RIGHT NOW. UM AND I
GET A LOT OF MY BILL IDEAS FROM
THINGS THAT I READ IN YOUR
PUBLICATIONS. I DID A BILL THIS
YEAR. WHICH YOU WERE PART OF MR
UMBERG TRYING TO END THE
PROLIFERATION OF CHILD SEX,
SEXUAL ABUSE ABUSE MATERIAL ON
OUR SOCIAL MEDIA COMPANIES. I
READ ABOUT THAT IN THE PAPER,
AND THAT'S WHY I GOT INVOLVED
BECAUSE FAMILIES NEEDED
SOLUTIONS. AND SO WHO UNCOVERED
THAT IS REPORTERS. REPORTERS ARE
THE ONES DOING THIS WORK THE
DRIVE THE IDEAS THAT I AND MANY
OF US WORK ON? SO I APPRECIATE
YOU GOING OUT OF ORDER WITH
PUBLIC COMMENT, AND I LOOK
FORWARD TO WORKING WITH YOU
WHILE EVERYONE HERE TOWARDS
LANDING THIS PLANE. ALRIGHT.
WELL THANK YOU. REMEMBER WICKS,
THANKS FOR YOUR LEADERSHIP IN
THIS SPACE NOW. THE VERY
PATIENT, MR CARMONA. OH, I'M
SORRY. LET ME LET ME ASK CENTER
ASHBY. UM I KNOW THAT I'M
GRATEFUL FOR OUR COLLEAGUES WHO
HAVE COME FROM NORTHERN
CALIFORNIA. THIS IMPORTANT
HEARING AND I KNOW THEY'VE GOT
TO CATCH A PLANE. SO SENATOR, SO
SORRY. I'M L A TRAFFIC RIGHT? OR
ELSE I COULD SAY A LITTLE BIT
LONGER. I'M SO SORRY, BUT I DID
WANT TO JUST SAY BEFORE I RUSH
OFF AND THE ASSEMBLY WOMAN AND I
CATCH SOME FLIGHTS AND SENATOR
GLACIER BACK UP TO NORTHERN
CALIFORNIA THAT I AM. DEEPLY
ENRICHED BY THE DIALOGUE TODAY
FROM ALL OF YOU, IT'S REALLY,
REALLY HELPFUL, AND MY TEAM IS
BACK IN SACRAMENTO WATCHING THE
LIVESTREAM. THEY'LL CONTINUE TO
WATCH THIS AND TAKE GOOD NOTES
FOR ME AND FILL ME IN ON WHAT I
MISS. WELL, I'M IN TRANSIT, BUT
THANK YOU TO YOU, SENATOR AMBERG
AND SENATOR ALLEN AND FOR
EVERYONE WHO TOOK THE TIME TO BE
HERE TODAY, AND PARTICULARLY THE
PANELISTS, AND TO THE THREE
LADIES WHO SPOKE ON THE PANEL
NOW I KNOW THERE'S ONE MORE
COMING. I'M ALWAYS COUNTING HOW
MANY WOMEN ARE IN THE ROOM ON
THOSE PANELS, SO THANK YOU FOR
CHOOSING TO BE HERE TODAY.
APPRECIATE YOU. THANK YOU. THANK
YOU SO MUCH. SENATOR ASKED ME
FOR COMING DOWN, ALL RIGHT. UH,
NOW MR CARMONA. THANK YOU AGAIN
FOR YOUR. GOOD AFTERNOON,
EVERYONE. MY NAME IS ARTURO
CARMONA. AND I'M HERE TODAY IN
MY CAPACITY AS PRESIDENT OF THE
LATINO MEDIA COLLABORATIVE. I
ALSO WANT TO THANK YOU, CHAIRMAN
HAMBURG FOR PUTTING THIS
CRITICAL CONVERSATION TOGETHER.
AS WELL AS ASSEMBLYWOMAN WICKS
AND SENATOR GLASER. FOR THEIR
LEADERSHIP ON THIS ISSUE AS WELL
AS UH SENATOR CABALLERO AND
DURAZO, WHO ARE MEMBERS OF THE
COMMITTEE THAT ARE NOT HERE
TODAY, BUT THEY'VE BEEN FIRMLY
COMMITTED TO ADVANCING A KEY
MESSAGE OF MINE TODAY, WHICH IS
AROUND EQUITY AH, IN THE STATE
OF CALIFORNIA. THE LATINO MEDIA
COLLABORATIVE IS AN ORGANIZATION
COMMITTED TO ADVANCING LATINO
JOURNALISM AND MEDIA THROUGH
ADVOCACY, CAPACITY BUILDING AND
CONTENT CREATION. FOR DECADES,
LEADERS IN THE LATINO MEDIA
COMMUNITY HAVE COMPLAINED OF NOT
BEING GIVEN A FAIR SHAKE OF
GETTING PENNIES ON THE DOLLAR
WHEN STATE RESOURCES ARE
DISTRIBUTED. COMMUNICATIONS AND
OUTREACH. THEY COMPLAIN OF THE
LACK OF EQUITY IN THE WAY OUR
STATE ADVANCES ITS POLICIES AND
COMMUNICATIONS OPERATION.
LATINOS NOW ACCOUNT FOR 40% OF
CALIFORNIA'S POPULATION.
CALIFORNIA IS THE MOST DIVERSE
STATE IN THE NATION. CALIFORNIA
IS ARGUABLY THE MOST NUANCED
STATE IN THE COMMUNICATE WITH.
WITH THE MEDIA ECOSYSTEM THAT'S
GEOGRAPHICALLY COMPLEX. RURAL
COASTAL URBAN SUBURBS LAYERED
WITH MULTILINGUAL AND
MULTICULTURAL DYNAMICS THAT ARE
UNIQUE. THIS IS ON TOP OF A
RAPIDLY CHANGING NEWS MEDIA
SECTOR. AND LIKE THE SECTOR MORE
BROADLY, AND OTHER COMMUNITIES
WE'VE HEARD ABOUT LATINO MEDIA
AND OUR BROADER MEDIA ECOSYSTEM
HAS SUFFERED GREATLY OVER THE
LAST TWO DECADES AS A RESULT OF
THE INTERNET. SIMILARLY TO
OTHERS THRIVING OUTLETS OF
STRUGGLED TO STAY AFLOAT AND ARE
NOW OPERATE WITHIN STAFFS AND
COUNTLESS OTHERS, SUCH AS EAST
SIDE PUBLICATIONS, SERVES
SERVICING EAST LOS ANGELES AND
SOUTHEAST LOS ANGELES HAVE HAD
TO CLOSE THEIR DOORS. I WANTED
TO MAKE TWO MAIN POINTS TODAY.
FIRST I WANT TO SPEAK MORE
BROADLY ABOUT THE URGENT NEED TO
INTEGRATE EQUITY INTO THIS
CONVERSATION. AS WE WORK
DILIGENTLY TO PROTECT
DIVERSIFIED FUNDING STREAMS AND
TURNED THE TIDE ON JOURNALISM
AND LOCAL NEWS IN CALIFORNIA.
EQUITY MUST BE AT THE EPICENTER
OF ANY SOLUTION. WE CANNOT
REPEAT THE MISTAKES OF THE PAST
AND DEVELOP A MEDIA ECOSYSTEM.
THAT EXCLUDES COMMUNITIES OF
COLOR, PARTICULARLY LATINOS IN
CALIFORNIA. ON THIS FIRST POINT.
WE RECOGNIZE THAT THE STATE HAS
TAKEN FOCUS MEASURES TO
INTEGRATE GOVERNOR NEWSOM'S
EQUITY PLATFORM AND AGENDA ON
MANY OTHER SECTORS, INCLUDING
HEALTH AND EDUCATION AND OTHERS.
UNFORTUNATELY EQUITY AND THE
MEDIA AND COMMUNICATION SECTOR
REMAINS BROKEN. WITH A LACK OF
FOCUS STATEWIDE STRATEGY THAT
INTEGRATES DEPARTMENTS, AGENCIES
AND ADVANCES A COHERENT
STATEWIDE STRATEGY TO
EFFECTIVELY REACH COMMUNITIES OF
COLOR, PARTICULARLY LATINOS, TOO
OFTEN DO WE SEE TENS OR EVEN
HUNDREDS OF MILLIONS OF DOLLARS
IN COMMUNICATIONS AND OUTREACH
EFFORTS WITHOUT A FOCUSED EQUITY
STRATEGY? MOST OF THE TIME
DECISION MAKING POWER IS
DELEGATED TO PRIVATE COMPANIES
AND MARKETING FIRMS TO DECIDE
WHAT COMMUNICATION VALUES AND
PRINCIPLES TO ADVANCE FOR OUR
STATE. TOO OFTEN DO WE SEE
FRAGMENTED DEPARTMENT BY
DEPARTMENT COMMUNICATION
STRATEGIES TO ENGAGE IN
COMMUNITIES WITH LITTLE
STATEWIDE COORDINATION, COHESIVE
TRAINING AND BASIC STANDARDS SO
THAT AGENCIES FULLY UNDERSTAND
THE COMPLEXITIES OF EFFECTIVELY
COMMUNICATING IN THIS VERY
COMPLEX MEDIA ECOSYSTEM. THIS IS
WHY THE LATINO MEDIA
COLLABORATIVE IS ADVANCING
POLICY THROUGH A TWO YEAR BILL
TO ENSURE THAT ETHNIC AND
COMMUNITY MEDIA HAS A ROLE TO
PLAY IN THE DELIVERY OF
CALIFORNIA'S PUBLIC INFORMATION
CAMPAIGNS TO OUR COMMUNITIES.
WHAT WE'VE SEEN PROGRESS.
GOVERNMENT AGENCIES CONTINUE TO
UNDERUTILIZED, THE STATE'S RICH
LATINO AND ETHNIC MEDIA, AS WELL
AS COMMUNITY MEDIA, WHICH HAS
HEARD THE STATE'S ABILITY TO
REACH CALIFORNIA'S DIVERSE AND
HARD TO REACH POPULATIONS. SINCE
2021, CALIFORNIA HAS BEEN
WORKING TO TRACK THE ADVERTISING
AND OUTREACH SPENDING BY STATE
GOVERNMENT AGENCIES IDENTIFYING
THE COMMUNITIES I WISH THOSE
MESSAGES ARE TARGETED.
UNFORTUNATELY THOSE FIGURES SHOW
THAT DESPITE LATINOS, ACCOUNTING
FOR MUCH LARGER STATE OF THE
POPULATION, LESS THAN 10% OF
OUTREACH DOLLARS ARE SPENT IN
LATINO MEDIA THAT FOCUS ON OUR
COMMUNITIES. OTHER JURISDICTIONS
LIKE NEW YORK, CHICAGO. AND
OTHERS ARE TAKING LEADERSHIP TO
ADDRESS THIS SAME EXCLUSION AND
UNDER RESOURCING OF ETHNIC AND
COMMUNITY MEDIA BY COMMITTING
50% OF THEIR ADVERTISING
OUTREACH BUDGETS ACCORDINGLY.
THE LEGISLATION THAT WE'RE
SEEKING TO ADVANCE CREATES AN
ETHNIC AND COMMUNITY MEDIA
PROGRAM WITHIN GOVERNMENT TO
HELP MAXIMIZE AND USE ETHNIC AND
COMMUNITY MEDIA AND CARRYING THE
STATE'S ADVERTISING AND OUTREACH
MESSAGES. MY SECOND MAJOR POINT
FOCUSES ON THE MAIN TOPIC OF
TODAY'S CONVERSATION. AH, UM AND
WE BELIEVE THAT THE LEGISLATION
THAT MS WICKS IS LOOKING TO
ADVANCE IS VERY WELL INTENDED.
THAT IT SEEKS TO SUPPORT THE
IDEA OF FAIRLY RESOURCING MEDIA
OUTLETS FOR THE CONTENT THAT
THEY CREATE. WE THINK THAT'S
FAIR, AND WE THINK IT MOVES THE
NEEDLE FORWARD, BUT WE THINK
THAT IT ALSO GETS ONE MAJOR
THING VERY WRONG. IT WOULD
LARGELY LEAVE OUT LATINO MEDIA
OUTLETS AND THOSE WHO NEEDED THE
MOUSE. THE DATA SHOWS IT AND WE
BELIEVE THAT ANY SOLUTION NEEDS
TO HAVE EQUITY BAKED INTO THE
SOLUTIONS. WE NEED WE BELIEVE
THAT ANY EQUITY SOLUTION THAT
SETS ASIDE OR REDISTRIBUTE
FUNDING FOR MEDIA OUTLETS NEEDS
TO CREATE AN EQUITY SET ASIDE OF
AT LEAST 33% OF FUND ECONOMIC
RELIEF FOR ETHNIC AND COMMUNITY
MEDIA THAT ARE LEFT OUT OF THIS
LEGISLATION OR THIS POLICY
SOLUTION OR CONVERSATION. WE
BELIEVE THAT THIS COULD BE
ACCOMPLISHED IN DIFFERENT WAYS
TO ENSURE THAT LATINO ETHNIC AND
COMMUNITY OUTLETS PLAY A ROBUST
ROLE IN THE SOLUTION TO INFORM
CALIFORNIA. THERE'S BEEN
DIFFERENT SOLUTIONS PUT ON THE
TABLE, INCLUDING, UH, MINIMUMS
FOR SMALLER AND REGIONAL OUTLETS
THAT WE THINK NEEDS TO BE
STRONGLY CONSIDERED. WE BELIEVE
THAT INCLUDING A CENTRALIZED
PROCESS TO COLLECT, PROCURE AND
DISTRIBUTED DISTRIBUTED EQUITY
SET ASIDE TO MEDIA OUTLETS, MOST
IN NEED, PARTICULARLY ETHNIC AND
COMMUNITY MEDIA. IS A MUST.
THESE ARE OUTLETS, UH, THAT ARE
IN THE PROCESS OF TRANSITIONING
INTO THE DIGITAL ECHO MEDIA
ECOSYSTEM, OFTEN WITH LOWER
DIGITAL TRAFFIC. AH WITH
BUILDING UP THEIR CAPACITY TO BE
ABLE TO MASTER THIS NEW THIS NEW
PLATFORM. AH ORGANIZATION HAS
BEEN SPOKEN TO SPIN IT SPENT
INVESTING SIGNIFICANT TIME TO
BUILD THEIR CAPACITY, BUT
THEY'RE NOT THERE YET. I THINK
THE DATA SHOWS THAT THESE
OUTLETS THAT WE REPRESENT WILL
BENEFIT IN THE MINUSCULE WAY. SO
WE BELIEVE THAT THE COLLECTION
OF THIS EQUITY SET ASIDE FOLLOW
MUST FOLLOW A PROGRESSIVE MODEL
SO THAT THE VAST MAJORITY OF THE
SET ASIDE AND THESE FUNDS ARE
THAT ARE GENERATED. MUST BE
GENERATED FROM TOP PERFORMING
PLATFORMS THAT ACCOUNT FOR AT
LEAST 50% OF CALIFORNIA'S
TRAFFIC. WE HOPE THAT THESE
RECOMMENDATIONS CAN BE
INTEGRATED INTO THIS PROPOSAL
AND THE BOTTOM LINE SIMILARLY TO
OTHER SPEAKERS, ANY PROGRAM
CREATED TO HELP CALIFORNIA
JOURNALISM SHOULD DISTRIBUTE ANY
SUPPORT BROADLY AND MAKE SURE
THAT IT REACHES THE ETHNIC AND
COMMUNITY MEDIA WHO ARE MOST
VULNERABLE AND MOST IMPORTANT TO
THE COMMUNITIES THAT DEPEND ON
OBJECTIVE. AND ACCURATE
INFORMATION. THANK YOU VERY MUCH
FOR YOUR TIME. THANK YOU, MR
CARMONA. I HAVE QUESTIONS ALSO
GO AHEAD SOON. I I'M RUNNING UP
AGAINST THE CLOCK RIGHT NOW.
WE'VE GOT A PANEL, SO I'M GOING
TO WITHHOLD. BUT I DO WANT TO DO
SOME FOLLOW UP WITH SEVERAL OF
THE PANELISTS. LET ME FOLLOW
INTO YOUR POINT. UM I HAVE A
QUESTION AND THE QUESTION MAY BE
BEST ANSWERED IN WRITING LATER
ON, AND I APPRECIATE YOU BEING
HERE. UM THE QUESTION IS WE'RE
CRAFTING A SOLUTION WHAT THE
DIFFERENCES ARE BETWEEN MAJOR
MEDIA AND IN TERMS OF THE IMPACT
OF DIGITAL DIGITAL PLATFORMS. IN
OTHER WORDS, IS IT IS THE IMPACT
DIFFERENT ON ETHNIC MEDIA VERSUS
LOCAL MEDIA IS THAT IMPACT
DIFFERENT ON THE MAJOR
PUBLISHERS WERE TRYING TO I
BELIEVE CREATE, UM SOME SORT OF
SUPPORT THAT IS FAIR. TWO ETHNIC
MEDIA TO LOCAL MEDIA TO MAJOR
MEDIA OUTLETS THAT ARE THAT ARE
CREDIBLE, SO UH, LET ME GIVE YOU
JUST A QUICK SHOT. AND THEN
CONTRARY TO CONVENTIONAL WISDOM
MANY OF US CAN READ IN THE
LEGISLATURE AND MANY OF US DO I
KNOW SENATOR ALLEN CAN READ SO
LET ME START WITH YOU, MR
CARMONA. ARE DIFFERENT BETWEEN
LOCAL AND ETHNIC MEDIA IS
THERE'S SOME DO WE NEED TO BE
COGNIZANT? OKAY IF YOU'RE COMING
UPON HIM, DO WE NEED TO BE
COGNIZANT OF ANY DIFFERENCES AND
IMPACT BETWEEN, FOR EXAMPLE,
LOCAL MEDIA AND ETHNIC MEDIA? I
THINK MARTHA WOULD BE ALSO A
VERY GOOD PERSON TO ANSWER THIS,
BUT BASED ON MY INTERACTION WITH
ETHNIC MEDIA IN PARTICULAR, UM
THE IMPACT HAS BEEN SIGNIFICANT.
UH PARTICULARLY, AND YOU KNOW
ALL KINDS OF REVENUE STREAMS
THAT ETHNIC MEDIA HAVE. LATINO
MEDIA, IN PARTICULAR HAVE HAVE
RECEIVED WHETHER IT'S OBITUARIES
OR CLASSIFIED OR ARE NOW ALL
KINDS OF LOCAL ADVERTISING THAT
THEY THEY'VE BEEN, UM, IMPACTED
BY THE SHRINKING OF THAT REVENUE
. UM THEY'VE THEY'VE BEEN, UM
FORCED TO, UH YOU KNOW, AND I
THINK IN A IN A HEALTHY WAY,
PURSUE DIFFERENT ALTERNATIVES.
DIFFERENT FUNDING STREAMS,
ADVANCED THEIR DIGITAL SKILLS
AND MOVING THAT DIRECTION. BUT
THERE'S NO QUESTION THAT THEY
HAVE BEEN IMPACTED. UH MAYBE
I'LL JUST I'LL LATER ON. OKAY,
GO AHEAD, MR. BROWN WILSON. I
WANT TO JUST SAY THAT, YOU KNOW,
I THINK THAT UM AND I'LL SPEAK
FOR BLACK MEDIA AND I THINK I
CAN SPEAK TO SANDY WILL TELL ME
IF I CAN SPEAK FOR ETHNIC MEDIA
AS A WHOLE, BUT YOU KNOW, WE HAD
OVER 300 ETHNIC MEDIA, 200
ETHNIC MEDIA AND THEN GOVERNMENT
AGENCIES AUGUST 31ST FOR THE
FIRST ETHNIC MEDIA AWARDS. UM
AND CONFERENCE ONE DAY
CONFERENCE. I WILL TELL YOU THAT
. MOST OF THE RESISTANCE EVEN IN
MOST COMMUNITIES AROUND BEING
DIGITAL IS THERE'S NOT A, UM
THERE'S NOT A REVEREND, AND YOU
CAN'T MAKE THE REVENUE RIGHT OFF
A DIGITAL, SO THE WAY I BELIEVE
MOST, AND I CAN SPEAK FOR THE
BLACK MEDIA THE WAY THEY SEE IT
IN AND ARE STILL SURVIVING, ARE
LOOKING AT STILL CONTINUING WITH
THEIR PRINT, MAYBE SMALLER
AMOUNTS OF THAT PRINT. THEY'RE
DIGITAL AND EVENTS. AND SO WHEN
YOU'RE CRAFTING SOMETHING, IT IS
DIFFERENT BECAUSE THE AUDIENCE
UNIVERSE SIZE IF YOU JUST GO OFF
OF CLICKS OR YOU JUST GO OFF OF,
YOU KNOW IMPRESSIONS. IT'S NOT
GOING TO BE THE SAME BECAUSE THE
UNIVERSE IS SMALLER, BUT STILL
VERY, VERY IMPORTANT. SO I THINK
THAT IT'S JUST A SIDE
CONVERSATION. WE ARE WORKING ON
SOME RESEARCH OURSELVES, OUR
RESEARCHERS TO BRING TO BRING US
HERE. UM AND SHE'S GONNA BE
WORKING WITH US TO BE ABLE TO
LOOK AT WHAT SOME OF THOSE
SOLUTIONS COULD LOOK LIKE. UM
AND WE'RE GOING TO BE HAPPY TO
SHARE THOSE WITH THE COMMITTEE
AND MAYBE WE JUST WE'LL GET
RESPONSES LATER ON, BUT WHAT I'M
LOOKING FOR IS YOU KNOW, FOR
EXAMPLE, ARE THE IMPACTS GREATER
OR DIFFERENT ON ETHNIC MEDIA
VERSUS LOCAL MEETINGS. SO JUST
BY WAY, OF EXAMPLE,
REPRESENTATIVE HISTORICALLY
REPRESENTED VIETNAMESE COMMUNITY
THAT HAS AN INCREDIBLY VIBRANT
PRINT AND ELECTRONIC MEDIA. I
DON'T KNOW QUITE WHY THAT ETHNIC
MEDIA MARKET IS SO VIBRANT
VERSUS OTHER ETHNIC MEDIA
MARKETS. SO UM, GO AHEAD, I
THINK IS THAT A SMALL LOCAL
OUTLET OUR PROBLEM IS THAT WE
DON'T HAVE A LOT OF BODIES TO DO
A LOT OF DIFFERENT THINGS. SO IF
WE NEED TO TAKE A NEW PROJECT ON
AND WE DON'T HAVE THAT SKILL SET
TO DO IT, IT'S VERY DIFFICULT
FOR US TO MANAGE IT. SO IF WE
HAVE MORE REVENUES, WE CAN DO A
LOT OF THINGS. SO RIGHT NOW, I
THINK IT'S LIMITED. ACCESS TO
FOLKS THAT CAN ACTUALLY DO SOME
OF THIS WORK THAT'S COMING OUR
WAY, LIKE SOME OF THE GRANTS
HAVE COME WITH ALL KINDS OF
STRINGS ATTACHED. NOW YOU HAVE
TO HAVE THIS WHOLE NEW REVENUE
STREAM A WHOLE NEW WAY OF DOING
BUSINESS. WE CAN'T DO IT. WE
CAN'T LAUNCH THAT. BUT AS FAR AS
YOU KNOW, I HAVE THE SAME
PROBLEMS. I'M SURE THAT THE L A
TIMES HAS. AND MAYBE EVEN WORSE,
YOU KNOW, BECAUSE YOU KNOW WE'RE
STILL CHALLENGED BY DATA,
WHETHER YOU HAVE DIFFERENT
PROBLEMS THAN OTHERS. BUT THAT'S
OKAY. A 11 THING, REALLY, REALLY
QUICK BECAUSE IT WAS JUST
TALKING ABOUT BEING FACT BASED.
THE PERSON ACTUALLY CAN ACTUALLY
ANSWER THIS QUESTION FOR YOU,
SANDY CLOSE. I MEAN, SHE WORKS
WITH IF YOU LOOK AT THE
VIETNAMESE POPULATION, THEY
ALREADY KNOW THE PUBLICATION
THAT IS THERE TO BE ABLE TO
ANSWER THAT QUESTION FOR YOU. SO
I JUST WANT TO MAKE SURE YOU
KNOW THAT. THANK YOU. ALL RIGHT.
THANK YOU VERY MUCH. I REALLY
APPRECIATE YOUR PARTICIPATION.
THIS IS A CONVERSATION THAT WILL
CONTINUE WELL BEYOND. SO LET'S
NOW TURN TO THE NEXT PANEL, AND
THIS IS A THIS IS LIVED
EXPERIENCE IN OTHER VENUES IN
THE INTERNATIONAL ARENA. UM
INTERNATIONAL MEASURES. UM. MS.
IS IT RIGHT? ALRIGHT MR RAJ,
THEN, MR MCHALE, THEN, UM. THE
FOREIGN KOZLOWSKI THEN RYAN
ADAMS. THANK YOU VERY MUCH,
OKAY? MA'AM FLOOR IS YOURS,
OKAY? ALL RIGHT. THANK YOU. SO
MUCH FOR THE INVITATION TO
APPEAR BEFORE THE COMMITTEE
TODAY. MY NAME IS COURTNEY RAJ,
AND THEY'RE HAVING SPENT THE
PAST 20 YEARS AS A JOURNALIST,
SCHOLAR AND PRACTITIONER WRITING
SPEAKING AND WORKING ON TECH
POLICY AND NEWS MEDIA
SUSTAINABILITY AROUND THE WORLD.
I'M GRATEFUL TO HAVE THE
OPPORTUNITY TO BRING MY
EXPERTISE TO THIS INFORMATIONAL
HEARING ON ISSUES FACING DIGITAL
NEWS MEDIA, ESPECIALLY AS THE
SIXTH GENERATION CALIFORNIAN WHO
GOT MY START IN JOURNALISM AT
BERKELEY'S DAILY COW PAPER. AS
THE DIRECTOR OF THE CENTER FOR
JOURNALISM AND LIBERTY, IT OPEN
MARKETS INSTITUTE AND A FELLOW
HERE AT THE INSTITUTE FOR
TECHNOLOGY, LAW AND POLICY. I
RESEARCHED THE WAY THAT
TECHNOLOGY POLICY IMPACTS
INFORMATION ECOSYSTEMS AND CO
AUTHORED THE REPORT THAT YOU
HAVE ON YOUR DESKS. OVER MY TWO
DECADES OF EXPERIENCE IN THE
MEDIA SECTOR IN ACADEMIA, I HAVE
NEVER RECEIVED ANY FUNDING FROM
A TECH PLATFORM FOR MY RESEARCH
AND OPEN MARKETS INSTITUTE DOES
NOT ACCEPT ANY FUNDING FROM
TECHNOLOGY COMPANIES, MAKING US
A RARE INDEPENDENT VOICE ON
TECHNOLOGY POLICY AND
JOURNALISM. TO BEGIN THE CRISIS
FACING JOURNALISM IS NOT A
PROBLEM OF THE NEWS INDUSTRY
ZONE MAKING OR OF THE INTERNET,
AND IT AFFECTS ALL NEWS OUTLETS,
NOT ONLY DIGITAL ONES, IT IS A
RESULT OF LEGAL REGULATORY
FRAMEWORKS THAT PRIVILEGED TECH
PLATFORMS OVER THE PRESS AND
GIVE THE FORMER UNFETTERED POWER
TO SET THE RULES AS YOU DESIGN
POLICIES TO SUPPORT NEWS, PLEASE
KEEP IN MIND. BIG TECH PLATFORMS
, SPECIFICALLY GOOGLE AND META,
BUT LIKELY SOON, SEVERAL AI
COMPANIES PLAY AN INTEGRAL AND
INESCAPABLE ROLE THROUGHOUT THE
ENTIRE NEWS VALUE CHAIN. THEY
SET PUBLISHING PROTOCOLS, WHICH
PUBLISHERS MUST ADAPT TO AND
WHICH CAN BE CHANGED ON A WHIM
WAS SIGNIFICANT COSTS TO
PUBLISHERS AS WELL AS
REPERCUSSIONS FOR NEWS,
VISIBILITY AND MONETIZATION THEY
OWN AND CONTROL THE TOOLS AND
SERVICES JOURNALISTS USED TO DO
THEIR JOBS, INCLUDING EMAIL, WEB
HOSTING CLOUD SERVICES
MESSAGING. ARCHIVING. THE CLOUD
SERVICES ESPECIALLY IMPORTANT TO
INVESTIGATIVE JOURNALISM, AND
WITH A I RISING AND IMPORTANCE
IN JOURNALISM, AS WELL AS CYBER
SECURITY SERVICES. THEY
DETERMINE THE RULES FOR REACHING
AUDIENCES AND CONTENT MODERATION
WHILE ALSO CONTROLLING THE MOST
POPULAR ONLINE SPACES THOSE
AUDIENCES USE, MEANING THAT THEY
SHAPE THE BUSINESS MODELS. THE
EDITORIAL STRATEGIES, PRODUCTION
AND DISSEMINATION THROUGHOUT THE
SECTOR. BIG TAP MONOPOLIZES THE
ENTIRE DIGITAL ADVERTISING
ECOSYSTEM FROM ADD SERVERS TO
ADD EXCHANGES TO AUCTIONS, AS
WELL AS THE APP STORES WHERE
NEWS OUTLETS SELL THEIR
SUBSCRIPTIONS. PUBLISHERS FACE A
COERCED CHOICE THAT WHEN IT
COMES TO PLATFORMS, ONE IS THAT
THAT IS COMPOUNDED BY A LACK OF
INTEROPERABILITY AND DATA
PORTABILITY BETWEEN PLATFORMS.
ASKING JOURNALISM TO OPT OUT OF
THEM IS NOT REALISTIC OR
FEASIBLE, NOR OUR PROPOSALS TO
WALL OFF NEWS CONTENT AND
PREVENT IT FROM BEING SCRAPED OR
USED IN LARGE LANGUAGE MODELS
AND A I PRODUCTS, REMOVING
QUALITY INFORMATION FROM LMS AND
INFORMATION RETRIEVAL SERVICES
WILL ONLY EXACERBATE MIS AND
DISINFORMATION REINFORCED
GENERATIVE AI HARMS LIKE
HALLUCINATIONS AND UNDERMINE A
HOST OF DOWNSTREAM APPLICATIONS.
THE NEWS CRISIS IS NOT BECAUSE
OF THE INTERNET. CRAIGSLIST DID
NOT DESTROY AND CO OPT THE
BUSINESS MODEL PLATFORM
MONOPOLIES DID DESPITE THE FACT
THAT A HANDFUL OF US TECH
MONOPOLIES ARE INFRASTRUCTURAL
TO NEWS MEDIA AROUND THE WORLD.
OUR LAWS AND REGULATIONS HAVE
NOT CAUGHT UP WITH THIS REALITY
AND THESE TECH PLATFORMS ENJOY
UNPRECEDENTED EXEMPTIONS FROM US
LIBEL LAW. AND ANTI
DISCRIMINATION REQUIREMENTS AND
PRIVACY CONSTRAINTS, WHICH HAS
AN IMPACT ON MEDIA AROUND THE
WORLD. NOR DO THEY PAY THEIR
FAIR SHARE OF TAXES IN THE
COUNTRIES WHERE THEY ARE
HEADQUARTERED, MUCH LESS WHERE
THEY OPERATE AND PERHAPS MOST
CONSEQUENTIALLY FOR NEWS MEDIA
GLOBALLY. PLATFORMS CLAIM
UNPARALLELED RIGHTS TO USE
COPYRIGHT PROTECTED MATERIAL
LIKE JOURNALISM WITHOUT
PERMISSION OR COMPENSATION.
HOWEVER POLICYMAKERS ARE WAKING
UP TO THIS FACT AROUND THE WORLD
AND THE FACT THAT THESE TECH
MONOPOLIES FORMED THE BACKBONE
OF THE MODERN MEDIA SYSTEM,
THESE ESPECIALLY WITH THE
GENERATIVE AI REVOLUTION. THIS
COULD FURTHER EXACERBATE THE
CRISIS FACING JOURNALISM AND
DEMOCRACY, AND THEY ARE
EXPLORING WAYS TO MAKE BIG TECH
PAY FOR THE NEWS THEY USE.
AUSTRALIA'S PIONEERING 2021 NEWS
MEDIA AND DIGITAL PLATFORMS.
MANDATORY BARGAINING CODE
REQUIRED DESIGNATED PLATFORMS TO
NEGOTIATE WITH PUBLISHERS BY
ESTABLISHING AN ARBITRATION
PROCESS. ALTHOUGH NO PLATFORM
HAS BEEN DESIGNATED YET THE MERE
EXISTENCE OF THIS LEGISLATION
HAS RESULTED IN GOOGLE AND META
PAYING MORE THAN $200 MILLION TO
AUSTRALIAN NEWS MEDIA, INCLUDING
SMALL LOCAL AND SPECIALIZED
MEDIA AND LEADING TO THE
CREATION OF HUNDREDS OF NEW
JOURNALISM JOBS WITH JOB ADS
RISING 46. A DOZEN COUNTRIES AND
ALL EU MEMBER STATES ARE
ACTIVELY EXPLORING OR ENACTING
POLICIES TO ADDRESS FAIR
COMPENSATION, ACCORDING TO SEE
JLS TECHNOLOGY AND MEDIA FAIR
COMPENSATION FRAMEWORKS, GLOBAL
TRACKER. THESE HAVE PRIMARILY
FOCUSED ON TRYING TO REBALANCE
THE PLAYING FIELD BETWEEN BIG
TECH PLATFORMS AND NEWS
ORGANIZATIONS BY EXEMPTING
PUBLISHERS FROM ANTITRUST
RESTRICTIONS ON COLLECTIVE
BARGAINING, REQUIRING RELEVANT
PLATFORMS TO COME TO THE
NEGOTIATING TABLE AND THUS
CREATING A FORUM FOR
NEGOTIATIONS OR GRANTING
EXPLICIT ANCILLARY COPYRIGHTS TO
PUBLISHERS. FOR EXAMPLE,
CANADA'S RECENTLY PASSED ON MY
NEWS ACT ALLOWS PUBLISHERS TO
COLLECTIVELY BARGAIN WITH LARGE
DIGITAL PLATFORMS. MATTER, OF
COURSE, IS CENSORED CANADIAN
NEWS RATHER THAN COMPLY. OTHERS
ARE GOING TO TALK ABOUT CANADA
AND DEPTH. BRAZIL'S COPYRIGHT
LAW REFORM SEEKS TO TACKLE POWER
IMBALANCES BETWEEN VARIOUS
DIGITAL PLATFORMS AND ARTISTS
AND CREATORS, INCLUDING NEWS
PUBLISHERS. THE EU COPYRIGHT
DIRECTIVE CREATED A RIGHT FOR
NEWS PUBLISHERS TO RECEIVE
REMUNERATION FROM TECH COMPANIES
FOR SCRAPING AND REUSING THEIR
CONTENT WHILE LEAVING THE
SPECIFICS OPEN TO NATIONAL
INTERPRETATION. SO WHAT WE'VE
SEEN IN DENMARK, FOR EXAMPLE, AS
THEY SEEK TO TRANSPOSE THE
DIRECTIVE IS THAT VIRTUALLY
EVERY NEWS PUBLISHER HAS JOINED
A NEW COLLECTIVE, SO THEY'VE
MANAGED TO KIND OF GET OVER
THEIR DIFFERENCES. TO
COLLECTIVELY NEGOTIATE WHAT THIS
IS GOING TO LOOK LIKE FOR THEIR
COUNTRY AND CONSIDER THAT A I
COMPANIES AND LARGE LANGUAGE
MODELS AS WELL AS BIG TECH
PLATFORM SHOULD BE REQUIRED TO
PAY IN INDIA. REFORMS ARE
EXPECTED TO INCLUDE A NEWS MEDIA
BARGAINING FRAMEWORK RESCIND
OVERLY BROAD INTERMEDIARY
LIABILITY EXEMPTIONS FOR
PLATFORM INTERMEDIARIES, WHICH,
BY THE WAY WE EXPORT SECTION 230
THROUGH OUR TRADE LAWS, WHICH IS
VERY PROBLEMATIC. AND ADDRESS
COPYRIGHT PROTECTED USES OF NEWS
CONTENT TO TRAIN LMS. NEW
ZEALAND'S FAIR DIGITAL NEWS
BARGAINING BILL CREATES A SAFE
HARBOR AND COMPELS PLATFORMS TO
NEGOTIATE. SOUTH AFRICA AND
TAIWAN ARE BOTH AN INITIAL
EXPLORATORY PHASES OF SIMILAR
FRAMEWORKS. MEANWHILE HOWEVER,
GOOGLE AND META HAVE TRIED TO
BUY OFF NEWS MEDIA AROUND THE
WORLD AND HEAD OFF REGULATION
THROUGH DIRECT ASSISTANCE.
GRANTS FELLOWSHIPS INCLUSION IN
SPECIAL NEWS PRODUCTS AS YOU
HEARD RICHARD GRINGOS TESTIFY
AND BY SCARING SMALLER
PUBLISHERS WITH THE IDEA THAT
THEY WILL LOSE OUT ON ANY CRUMBS
OF FUNDING THAT THEY MAY HAVE
RECEIVED FROM THE PLATFORMS. FOR
EXAMPLE, GLUECK GOOGLE NEWS
INITIATIVE OR BE CUT OFF OF
THEIR PRODUCTS ENTIRELY. THESE
PALTRY SUMS NOT ONLY UNDERVALUE
NEWS, BUT ALSO MAKE JOURNALS AND
BEHOLDEN TO THE BENEVOLENCE OF
THE TECH PLATFORMS THAT THEY
COVER. COLLECTIVE BARGAINING IN
A REGULATORY FRAMEWORK THAT
CREATES A FORUM FOR NEGOTIATIONS
TO TAKE PLACE INCREASES THE
POWER OF LOCAL AND SMALLER NEWS
OUTLETS. CURRENTLY THERE IS NO
FORUM WHERE TECH PLATFORMS ARE
COMPELLED TO NEGOTIATE WITH ALL
OUTLETS, NOT JUST THE LARGEST
ONES OTHER THAN IN AUSTRALIA.
CREATING A FORUM FOR
NEGOTIATIONS IS A CRITICAL YET
OFTEN OVERLOOKED ASPECT OF THIS
TYPE OF LEGISLATION, ESPECIALLY
SINCE PUBLISHERS COULD ALSO
LEVERAGE TO NEGOTIATE FOR USE OF
THEIR DATA AND CONTENT IN A I
SYSTEMS. FURTHERMORE, THE FACT
THAT LARGE NEWS ORGANIZATIONS
BENEFIT IS NOT A BAD THING. THEY
EMPLOY THOUSANDS OF PEOPLE. THEY
HAVE FOREIGN CORRESPONDENTS.
THEY GENERATE THE MOST TRAFFIC,
BUT INDEED, ONE OF THE BIGGEST
CHALLENGES THESE POLICIES FACE
COMES FROM SMALL PUBLISHERS WHO
FEEL LIKE THEY ARE LOSING OUT.
AND THEY ARE RIGHT IF WE
ACQUIESCE TO HOW BIG TECH HAS
NARROWED THE DISCUSSION TO FOCUS
ON REFERRAL TRAFFIC AMID VAST
INFORMATIONAL ASYMMETRIES
UNFORTUNATELY, MANY PUBLISHERS
HAVE BOUGHT INTO THIS NARROW
CONCEPTION OF VALUE THAT EQUATES
VALUE WITH TRAFFIC METRICS AND
EXCLUDES GENERATIVE AI COMPANIES
THAT USE NEWS CONTENT TO BUILD
AND IMPROVE THEIR MODELS AND
SERVICES. THIS MYOPIC FOCUS
DISREGARDS THE WAY THAT
JOURNALISM IMPROVES THE PLATFORM
FOR ALL USERS, EVEN IF THEY
DON'T CLICK THROUGH ON A
HEADLINE RECALL BRANDON'S
EARLIER TESTIMONY SHOWING
SCREENSHOTS FROM GOOGLE SEARCH
YOU HEARD ABOUT THIS STUDY FROM
SWITZERLAND RIGHTLY HYPOTHESIZED
THAT PEOPLE MIGHT ENGAGE IN
DIFFERENT TYPES OF BEHAVIOR IF
THEIR SEARCH RESULTS DIDN'T
INCLUDE INFORMATION FROM NEWS
PUBLISHERS. RESEARCHERS IN
SWITZERLAND FOUND THAT THE VALUE
OF NEWS IS FAR FAR HIGHER THAN
POLICYMAKERS ARE PUBLISHES.
PUBLISHERS THINK IT IS ON GOOGLE
SEARCH, WHICH ACCOUNTS FOR THE
MAJORITY OF GOOGLE'S $280
BILLION ANNUAL REVENUE. CLICK
THROUGH RATES, BY THE WAY, WHAT
I WAS RESEARCHING THAT QUESTION
IS AROUND 30% MAXIMUM AND OFTEN
DOWN TO 1% ON FACEBOOK. USER U.
S ECONOMISTS ACCOUNTING FOR
ADDITIONAL VALUE CREATED THROUGH
COMPLEMENTARY TRANSACTIONS
BETWEEN TECH PLATFORMS AND
PUBLISHERS. MEANING THEY'RE BOTH
BENEFITING. FOUND THAT GOOGLE IF
YOU SPLIT THAT OWES US
PUBLISHERS MORE THAN $10 BILLION
A YEAR, META SHOULD GO 7% OF ITS
AD REVENUE OR JUST UNDER $2
BILLION A YEAR. FURTHERMORE A
NARROW CONCEPT OF VALUE IGNORES
THE PUBLIC INTEREST SERVED BY
JOURNALISM AND THE TAX THAT BIG
TECH IMPOSES ON THE PUBLIC WHEN
LOCAL BUSINESSES CAN'T SURVIVE
WHEN CIVIC LIFE IS REDUCED TO
ENGAGEMENT, METRICS AND
CORRUPTION PROLIFERATES BECAUSE
THERE IS NO WATCHDOG HOLDING
THOSE IN POWER TO ACCOUNT.
ESTABLISHING THAT VALUE AND
BUILDING TRUST BETWEEN
PUBLISHERS AND WITH THE PUBLIC
REQUIRES TRANSPARENCY. EFFECTIVE
POLICY INTERVENTIONS MUST
INCLUDE TRANSPARENCY AND DATA
ACCESS REQUIREMENTS THAT ENABLE
PUBLISHERS TO ASCERTAIN VALUE
AND THUS DEVELOPED MORE INFORMED
BARGAINING POSITIONS AS WELL AS
SOME LEVEL OF TRANSPARENCY FOR
THE DEALS THEMSELVES. THE GLOBAL
PRINCIPLES ON FAIR COMPENSATION
LAYOUT. 10 PRINCIPLES INCLUDING
TRANSPARENCY, ACCOUNTABILITY AND
COLLECTIVITY THAT SHOULD GUIDE
THESE POLICY INTERVENTIONS. THEY
WERE ADOPTED IN SOUTH AFRICA IN
JULY BY MEDIA PRACTITIONERS AND
EXPERTS FROM AROUND THE WORLD.
THANK YOU WOULD WRAP IT UP?
THANK YOU. ALL RIGHT, SO JUST TO
CONCLUDE JOURNALISM IS A
PARTICULARLY VALUABLE SOURCE OF
TRAINING DATA FOR LARGE LANGUAGE
MODELS, MAKING UP HALF OF THE
TOP 10 SITES AND HAPPY TO GO
INTO THAT IN MORE DETAIL, BUT
WANT TO LEAVE YOU WITH THE IDEA
THAT THIS IS NOT FAIR USE. IT
WASN'T FAIR WHEN THE TECH TITANS
USED IT IN THE SOCIAL MEDIA ERA.
IT'S NOT FACING THERE NOW. THANK
YOU. UH, NEXT. MR MCHALE. GOOD
AFTERNOON CHAIR. HAMBURG MEMBERS
OF THE COMMITTEE. THANK YOU FOR
WELCOMING TO ME TODAY FOR THE
OPPORTUNITY TO SPEAK. MY NAME IS
JONATHAN MCHALE AND I SERVED AS
VICE PRESIDENT OF THE C C. A,
THE COMPUTER AND COMMUNICATIONS
INDUSTRY ASSOCIATION, WHICH
REPRESENTS INTERNET TECHNOLOGY
AND COMMUNICATION FIRMS, WAS
FOUNDED IN 1972 TO PROMOTE OPEN
MARKETS OPEN NETWORKS IN THE
COMPUTER AND TELECOMMUNICATIONS
INDUSTRY. GOALS THAT WE CONTINUE
TO CHAMPION TODAY. NO ONE LEAST
OF ALL C C I A QUESTIONS THE
IMPORTANCE OF QUALITY JOURNALISM
TO THE CIVIC LIFE OF A COUNTRY
INTO THE MAINTENANCE OF A
VIBRANT DEMOCRACY. NOR IS IT
DISAGREEMENT ABOUT HOW DIFFICULT
IT HAS BEEN FOR NEWS TO DEVELOP
A VIABLE BUSINESS MODEL IN THE
FACE OF TECHNOLOGICAL CHANGE,
BUT WHAT KIND OF GOVERNMENT
INTERVENTION WILL SUPPORT A
SUSTAINABLE MARKET ENVIRONMENT
FOR ALL PARTICIPANTS. I WOULD
LIKE TO OFFER SOME OBSERVATIONS
ON APPROACHES SEVERAL OTHER
COUNTRIES. AND ARE PLANNING
TODAY WITH PARALLELS TO WHAT YOU
ARE CONSIDERING IN CALIFORNIA.
INTERVENTIONS IN FOREIGN MARKETS
HAVE TAKEN DIFFERENT FORMS
CREATION IN EUROPE OF A PSEUDO
INTELLECTUAL PROPERTY RIGHT
BEYOND EXISTING COPYRIGHT
INTENDED TO FACILITATE NEWS
BUSINESS'S ABILITY TO BARGAIN.
TO NEGOTIATE LICENSES FOR THEIR
CONTENT AND AUSTRALIA AND CANADA
INTRODUCTION OF A MANDATORY
BARGAINING CODE. AH GOVERNING
THE COMMERCIAL RELATIONSHIP
BETWEEN NEWS BUSINESSES AND
SPECIFIC INTERNET COMPANIES.
WHAT UNITES THESE TWO APPROACHES
IS A CONTROVERSIAL THEORY THAT
FRAGMENTS OF TEXT OR EVEN JUST
LINKS SHARED ONLINE SHOULD
GENERATE A CLAIM OF
COMPENSATION. NOT ONLY DOES THIS
UPEND LONGSTANDING INTERNATIONAL
COPYRIGHT LAW, BUT IT ALSO
POINTS A DAGGER AT THE VERY
NATURE OF THE INTERNET AS AN
INFORMATION SHARING ECOSYSTEM.
THESE APPROACHES ARE ESSENTIALLY
A PRIVATE TAX AND SUPPORT OF A
BUSINESS MODEL UNDER STRESS.
THERE'S NO CERTAINTY THAT EITHER
APPROACH WILL PROVIDE A LONG
TERM SOLUTION. AH AND MUCH
EVIDENCE THAT THEY WILL HARM THE
QUALITY OF NEWS IN THE IN THE
DIGITAL ECOSYSTEM THAT THEY NEED
TO SURVIVE. FIRST THE EUROPEAN
APPROACH OVER A DECADE, EUROPE
HAS BEEN EXPERIMENTING WITH
PROVIDING NEWS, INTELLECTUAL
PROPERTY RIGHTS FOR NEWS
PUBLISHERS FOCUSING ON NEWS
AGGREGATION SERVICES. THE
STARTED WITH VOLUNTARY APPROACH
LICENSING IN GERMANY IN 2013 AND
MANDATORY COMPULSORY LICENSE IN
SPAIN IN 2014, AND NOW IN 2019.
E U AND EU WIDE LAW BEING
IMPLEMENTED AMONG MEMBER STATES.
GERMANY'S EFFORT IN 2013 FAILED.
COMPANIES OFFERING NEWS
AGGREGATION SERVICES SIMPLY
PULLED OUT OF THE MARKET, WHERE
PUBLISHERS DEMANDED COMPENSATION
FOR MERE LINKS OR SHORT EXTRACTS
. LARGE PUBLISHERS BEHIND THE
EFFORT REPORTEDLY SUFFERED A 41%
DECLINE IN TRAFFIC. AH AND THEY
EVENTUALLY AGREED TO ISSUE A
GRATIS LICENSE TO BE ABLE TO
CONTINUE TO GAIN INDEXING. THE
TAKEAWAY WAS CLEAR INDEXING AND
CARRYING OF EXTRACTS OF NEWS
WERE MUCH MORE VALUABLE THAN THE
PUBLISHERS WOULD ADMIT, AND
ENFORCING COMPENSATION RESULTED
IN FIRMS LEADING THE MARKET. THE
PUBLISHERS WERE WORSE OFF.
SPAIN'S EFFORT, WE HAD MORE DIRE
CONSEQUENCES. UNLIKE GERMANY, IT
MADE COMPENSATION MANDATORY EVEN
IF THE PUBLISHERS DID NOT DID
NOT ASK FOR IT. IT WAS
ESSENTIALLY A COMPULSORY LICENSE
FOR NEWS LINKS FOR WHAT IS OFTEN
CALLED A LINK TAX. SIMILAR
SMALLER SITES MOST DEPENDENT ON
REFERRAL TRAFFIC OPPOSED THIS
LAW, THE MAIN TARGET OF THE LAW
CONCLUDED THAT IT COULD NOT
JUSTIFY MAINTAINING A NEWS
AGGREGATION SITE AND SHUT IT
DOWN AT THE END OF 2014 BEFORE
THE LAW TOOK EFFECT. OTHER SITES
FOLLOWED SUIT, AND THE RESULTS
WERE PREDICTABLE. TRAFFIC TO
NEWS WEBSITES OVERALL DROPPED
MORE THAN 6. SMALLER PUBLISHERS,
WHO ARE EVEN MORE DEPENDENT ON
REFERRAL TRAFFIC. IT DROPPED 12.
DROPPED 14% SORRY. ONE
CONCERNING TAKE AWAY FROM THIS
FROM SPAIN WAS EVIDENCE THAT IT
LED TO AN INCREASED
FRAGMENTATION OF LEADERSHIP.
WHERE CONSUMERS CLUSTERING
AROUND NARROWER SOURCES OF NEWS.
AS ONE STUDY NOTED, THIS
UNDERMINES ONE OF THE MOST
IMPORTANT CONDITIONS OF
DEMOCRACY, WHICH IS ACCESS TO A
COMMENT AND RICH INFORMATIONAL
SPACE. IN 2019. THE EU PASSED A
NEW COPYRIGHT DIRECTIVE,
INCLUDING AN EU WIDE RIGHT FOR
PUBLISHERS. UNLIKE SPAIN, THIS
RIGHT EXCLUDED ACTS OF HYPER
LINKING AND VERY SHORT EXTRACTS
OF PRESS PUBLICATION IN FRANCE,
THE FIRST MEMBER TO IMPLEMENT
THIS UH UM. IT CREATED
UNCERTAINTY ABOUT THE SCOPE OF
WHAT SHORT EXTRACTS MEN AND SO
DUE TO CONCERNS ABOUT LIABILITY
ONLINE SUPPLIERS REQUIRED
PUBLISHERS TO OPT IN IF THEY
WANTED THEIR CONTENT INDEXED BUT
PUBLISHERS CONVINCED FRENCH
AUTHORITIES TO MAKE INDEXING
MANDATORY AND AH ISSUED MASSIVE
FINES FOR ALLEGEDLY NOT
BARGAINING IN GOOD FAITH WITH
PUBLISHERS WHO WERE SEEKING
COMPENSATION. IN THE END,
COMMERCIAL DEALS WERE STRUCK,
BUT THE END RESULT WAS AN
IMPOSITION OF A HEAVY HANDED
MUST CARRY MUST PAY REGIME.
THERE'S ARGUABLY INCONSISTENT
WITH BOTH EU LAW AND FRANCE'S
INTERNATIONAL OBLIGATIONS.
AUSTRALIA AUSTRALIA'S APPROACH
TO MARKET INVOLVEMENT BEGAN IN
2017 WITH THE DIGITAL PLATFORMS
INQUIRY FOCUSED ON COP NOT ON
COPYRIGHT OR RELATED RIGHTS. BUT
BROADER DYNAMICS IN THE ONLINE
MARKET, INCLUDING ADVERTISING AS
AS IN OTHER MARKETS. NEWSPAPERS
IN AUSTRALIA HAVE LONG STRUGGLED
TO BUILD A SUSTAINABLE BUSINESS
MODEL. IN FACT, ON A PER CAPITA
BASIS, CIRCULATION IN AUSTRALIA
HAS DECLINED SINCE THE 19
FIFTIES. OVER 50 YEARS. UH, AND
THE CLASSIFIED ADVERTISING THE
MAINSTAY OF THIS BUSINESS
PLUNGED 90% IN THE LAST DECADE,
THE GOVERNMENT CANDIDATE
CANDIDLY ADMITTED IN 2019. THIS
WAS THE HEART OF THE PROBLEM,
ASSERTED THAT THERE WAS NO
SUITABLE ALTERNATIVE TO
ADVERTISING BASED MODEL OF NEWS
PRODUCTION. SO WHAT DID THEY DO?
THEIR SOLUTION WAS A GOVERNMENT
SANCTIONED MECHANISM OF REVENUE
EXTRACTION. TARGETING THE ONE
SET OF COMPANIES WHO ARE
DEVELOPING NEW ADVERTISING
MARKETS. THIS STARTED AS A
VOLUNTARY CODE TO FACILITATE
BARGAINING BETWEEN NEWS
BUSINESSES AND DIGITAL
INTERMEDIARIES BUT SUDDENLY
ABANDONED IN 2020 20 IN FAVOR OF
LEGISLATION OF A MANDATORY CODE.
IT WAS HIGHLY CONTROVERSIAL LAW.
CRITICS INCLUDED THE SMALLER
PUBLISHERS, THE INVENTOR OF THE
WORLD WIDE WEB. UNITED STATES
GOVERNMENT. THE AUSTRALIA
TAXPAYERS ALLIANCE AND THE
FORMER PRIME MINISTER KEVIN EVEN
THE FINANCIAL TIMES OPPOSED THIS
LEGISLATION. OPPONENTS SAW A
PUNITIVE AND HIGHLY PROSPECTIVE
PRESCRIPTIVE INTERVENTION IN THE
MARKET ON BEHALF OF A SELECT
GROUP OF COMPANIES. THE
GOVERNMENT'S JUSTIFICATION WAS
THAT CERTAIN ONLINE COMPANIES
QUALIFIED AS UNAVOIDABLE TRADING
PARTNERS AND THEIR ALLEGED
BARGAINING ADVANTAGE JUSTIFIED
GOVERNMENT INTERVENTION. MARKET
ANALYSIS HAS BEEN REFUTED BY THE
OECD, WHERE A RECENT REVIEW OF
THE ISSUE NOTED THAT BARGAINING
POWER IMBALANCES ARE NOT
UNCOMMON IN COMPETITIVE MARKETS,
AND THIS FELL SHORT OF THE
TYPICAL COMPETITION TRIGGER FOR
INTERVENTION, WHICH IS
SUBSTANTIAL MARKET POWER IN A
INCREDIBLY DEFINED MARKET. ONE
FUNDAMENTAL QUESTION IN THIS
CONTEXT WAS, IS THERE A BARGAIN
TO BE HAD? THE NOTION THAT ONE
SHOULD BE FORCED TO BARGAIN IN
THE FIRST PLACE FOR PAYMENTS FOR
SNIPPETS OR LINKS THAT THE NEWS
COMPANIES ALLOWED TO BE INDEXED
OR POSTINGS THAT NEWS BUSINESS
SYSTEM SELVES INITIATE DEFIES
LOGIC. AUSTRALIA'S APPROACH
WILLFULLY IGNORED STRONG
EVIDENCE THAT THE RELATIONSHIP
BETWEEN NEWS BUSINESSES AND
DIGITAL SERVICE SUPPLIERS IS
COMPLIMENTARY, RATHER THAN
COMPETITIVE. COMPANIES HAVE
DOCUMENTED HUNDREDS OF MILLIONS
OF DOLLARS OF BENEFITS OF
VOLUNTARILY CHANNEL TWO NEWS
SITES THE VERY TARGETS OF THE
LEGISLATION AS ONE SMALL NEWS
PUBLISHER OPPOSING THE BILL
EXPLAINED IT RELIED ON THE TWO
TARGETED COMPANIES FOR 75% OF
THIS READERSHIP. DURING THE
DEBATE, THE BILL COMPROMISES
WERE INTRODUCED AND THE FINAL
PRODUCT WAS TOUTED AS A MARKET
ORIENTED SOLUTION, BUT IT WAS
NOTHING OF THE SORT THE SPECTER
OF ARBITRATION. DESIGNED TO
ASSIGN COMPENSATION WITH NO
GROUNDING IN ECONOMIC REALITY
MEANT THAT PRESSURE TO CONCLUDE
DEALS LACKING SOUND COMMERCIAL
BASIS WOULD BE THE NORM IN THE
END TO TARGETS OF LEGISLATION
DID CONCLUDE DEALS WITH A NUMBER
OF NEWS BUSINESSES AND THUS SO
FAR HAVE AVOIDED DESIGNATION.
PREDICTABLY UP TO 90% OF THE
PAYMENTS WENT TO THE TRADITIONAL
MEDIA BUSINESSES. WITH THE
LION'S SHARE GOING TO NEW SCORE,
THE BIGGEST ADVOCATE OF
INTERVENTION AND A COMPANY THAT
CONTROLS 50% OF NEWSPAPER
REVENUES, BUT THESE DEALS WILL
SOON EXPIRE. AND AT LEAST ONE OF
THE TARGETS OF THE LAW HAS CAST
SERIOUS DOUBT ON THE LONG TERM
EFFECTIVENESS. IT CALLED THEM AN
UNTIDY, SHORT TERM AND
UNSUSTAINABLE COMPROMISE.
FUNDAMENTAL QUESTIONS REMAIN
UNRESOLVED. WHETHER UH, WHETHER
DEALS WILL CONTINUE. WHETHER IF
DESIGNATED TARGETS WILL REMAIN
IN THE MARKET. HOW THE
BARGAINING CODE WOULD WORK IF
ACTUALLY IMPLEMENTED AND WHETHER
, IF DESIGNATED TARGETS WOULD
REMAIN IN THE MARKET. IN SHORT,
AUSTRALIA. AUSTRALIA'S
EXPERIMENT REMAINS JUST THAT AN
EXPERIMENT HAS YET TO PROVE ITS
WORTH. AS FOR MEETING THE GOALS
OF SAVING NEWS THE INITIAL DATA
ARE NOT ENCOURAGING. NEWS
PRODUCTION INITIALLY INCREASED
IN URBAN AREAS, BUT PLUMMETED IN
NON METROPOLITAN AREAS BY 2023
DECLINE, EVEN IN URBAN AREAS,
THE KIND EVEN IN URBAN AREAS. UM
UH AND IN URBAN AND NON URBAN
AREAS, EVEN AT HIGHER RATES. IN
SHORT, IT IS UNLIKELY THAT
FORCED PAYMENTS ARE SILVER
BULLET FOR THE DEEP STRUCTURAL
ISSUES SURROUNDING THE ECONOMICS
OF NEWS PRODUCTION. ON THE OTHER
HAND, THE NEGATIVE EFFECTS IN
AUSTRALIA ARE SIGNIFICANT WITH
INCREASED MEDIA CONCENTRATION
LIKELY WOULD LIKE TO TURN TO
CANADA QUICKLY, AND IT IS ONLINE
NEWS ACT PASSED JUNE 23RD WILL
COME INTO EFFECT ON DECEMBER
19TH AND JUST TWO WEEKS MODELED
ON AUSTRALIA'S LAW. IT IS A
BARGAINING CODE ON STEROIDS
DRAMATICALLY EXPANDED THE BASE
OF POTENTIAL BENEFICIARIES. AND
WHILE THERE IS A MECHANISM FOR
PLATFORMS TO AVOID DESIGNATION
DISCRETION IN GRANTING THE
EXCLUSION FROM MANDATORY
BARGAINING IS MUCH MORE
CIRCUMSCRIBED. IMPLEMENTING UH,
ASK YOU TO WRAP IT UP. OKAY?
SURE. QUESTION ABOUT CANADA.
OKAY ONE FINAL POINT. CANADA HAS
ANNOUNCED THE COMPROMISE, UH,
APPROACH FOR AVOIDING BEING
DESIGNATED UNDER THE LAW. BUT IT
REMAINS. THE POLICY APPEARS TO
DO MORE HARM THAN THANK YOU VERY
MUCH. THANK YOU. WIECKOWSKI.
FROM THE ELECTRONIC FRONTIER
FOUNDATION. THANK YOU, SIR. GOOD
AFTERNOON, SENATORS. MY NAME IS
THORN KACZYNSKI. I'M A SECURITY
AND PRIVACY ACTIVIST AT THE
ELECTRONIC FRONTIER FOUNDATION.
I'M ALSO A FORMER JOURNALIST AND
HAVE WORKED FOR BOTH LEGACY
MEDIA AND NEW MEDIA COMPANIES.
IF F HAS A NONPROFIT THAT WORKS
TO ENSURE THAT TECHNOLOGY
SUPPORTS FREEDOM, JUSTICE AND
INNOVATION FOR ALL THE PEOPLE OF
THE WORLD ON BEHALF OF OUR
NEARLY 35,000 ACTIVE DONORS,
INCLUDING THOUSANDS HERE IN
CALIFORNIA THANK YOU FOR
ALLOWING ME TO SPEAK HERE TODAY.
I'M HERE TO SPEAK SPECIFICALLY
TO WHAT SOME OF THE CORKS WE'VE
SEEN IN AUSTRALIA'S NEWS MEDIA
BARGAINING CODE, WHICH WAS
PASSED IN 2021. THE ELEVATOR
PITCH, AS YOU JUST HEARD FOR
THIS LAW IS RELATIVELY
STRAIGHTFORWARD. FACEBOOK AND
GOOGLE SHOULD PAY MEDIA
ORGANIZATIONS FOR SENDING THEM
WEB TRAFFIC. BEFORE WE GET INTO
IT. THERE'S SOME BACKGROUND HERE
THAT I FIND USEFUL IN
UNDERSTANDING HOW SOME OF THE
DECISIONS WERE MADE. FIRST OFF.
I'LL SHOW YOU HAS NO
CONSTITUTIONAL FIRST AMENDMENT
PROTECTIONS LIKE WE DO HERE IN
THE US, THIS IS IMPORTANT TO
CONSIDER. WHEN WE THINK ABOUT
WHAT PROTECTIONS MEDIA COMPANIES
HAVE AND HOW THAT MAY IMPACT THE
DEALS MEDIA COMPANIES MAKE WITH
OTHER TECH WITH THE TECH
COMPANIES. IN ORDER TO QUALIFY
AS A NEWS SOURCE. MEDIA
COMPANIES MUST COMPLETE A
REGISTRATION WITH THE AUSTRALIAN
COMMUNICATIONS AND MEDIA
AUTHORITY, WHICH SETS OUT A
SERIES OF FOUR TESTS AROUND
CONTENT, PROFESSIONAL STANDARDS,
REVENUE AND LOCATION. THE
GOVERNMENT DEFINING WHAT
JOURNALISM IS, IS ALREADY A
POTENTIAL ISSUE, BUT REGARDLESS
OF WHETHER A NEWS ORGANIZATION
HAS DEEMED ELIGIBLE, THERE'S NO
REQUIREMENT THAT TECH PLATFORMS
NEGOTIATE WITH THEM. THIS
DEFECTOR PUTS THE DIGITAL
PLATFORMS IN CHARGE OF DEFINING
WHAT JOURNALISM IS. IF AN
ORGANIZATION AND ATTACK PLATFORM
CAN'T COME TO A DEAL, THE NEWS
ORGANIZATION COULD APPEAL TO THE
AUSTRALIAN TREASURER. THIS WOULD
SET FORTH EMOTION. THIS WOULD
SET FORTH A PROCESS WHERE THE
TECH PLATFORM IN THE NEWS
ORGANIZATION WOULD SUBMIT OFFERS
. AN ARBITRATOR WOULD PICK ONE
OF THOSE NO ONE HAS GONE TO
ARBITRATION IN AUSTRALIA YET SO
WE DON'T ACTUALLY KNOW HOW
THAT'S GOING TO WORK. LIKEWISE
NO PLATFORMS HAVE BEEN SPECIFIED
UNDER THE CODE, WHICH MAKES THIS
UNENFORCEABLE AGAINST META AND
GOOGLE, ESSENTIALLY, CURRENTLY,
THE N NBC IS ONLY ACTING AS A
THREAT NOT AS AN ENFORCEABLE
POLICY. REGARDLESS. PUBLIC
RECORDS INDICATE META AND GOOGLE
BROKERED DEALS TOTALING AROUND
200 MILLION AUSTRALIAN CURRENCY
ACROSS 34 SEPARATE 3 TO 5 YEAR
DEALS. AND IN ITS FIRST REVIEW,
THE AUSTRALIAN FEDERAL TREASURY
FROM THE META ONLY MADE DEALS
WITH 13 MEDIA COMPANIES, WHEREAS
GOOGLE SECURED 23 DEALS. SINCE
IT WAS PASSED IN 2021. WE STILL
DON'T KNOW MUCH ABOUT THE
FINANCIAL SPECIFICS OF DEALS
BROKERED BECAUSE BECAUSE OF THE
AUSTRALIAN NEWS MEDIA BARGAINING
CODE. LACKS AN EARLY
TRANSPARENCY REQUIREMENT THAT
WOULD HAVE FORCED INFORMATION
ABOUT HOW TECH GIANTS PRICE USE
AND ALLOCATE AT SPACE TO BE MADE
PUBLIC WAS STRUCK FROM THE FINAL
VERSION AND NOT REPLACED WITH
ANYTHING MEANINGFUL. THIS SORT
OF TRANSPARENCY COULD HAVE
PROVIDED REGULATORS AND
PUBLISHERS OF ALL SIZES
SIGNIFICANT INFORMATION TO HELP
LEVEL THE PLAYING FIELD. INSTEAD
THE CODE HAS RESULTED IN SEVERAL
COMPLETELY SECRET SIDE DEALS
WITH PUBLISHERS. REPORT FROM THE
JUICE. JUDITH NIELSEN INSTITUTE
INDICATES THAT THAT AGREEMENT
SIGNED VERY WILDLY AND DISFAVOR
SMALLER PUBLICATIONS. FOR
EXAMPLE, NEWS CORP IS BELIEVED
TO HAVE LANDED A DEAL WORTH 70
MILLION PER YEAR, AND MARKET
SOURCES TAGGED TO THE GUARDIAN
PENDING A DEAL WITH GOOGLE FOR 5
MILLION PER YEAR. MEANWHILE THE
CONSORTIUM OF 160 SMALLER NEWS
PUBLISHERS GOT MUCH WORSE DEAL
WHILE LOADED WITH CONFIDENTIAL
CONFIDENTIALITY REQUIREMENTS.
RESEARCH SHOWS THAT ONE OF THE
TECH PLATFORMS WILL PAY LOCAL
NEWSPAPERS ROUGHLY 31,000 TO
62,000 PER YEAR, DEPENDING ON
THEIR SIZE AND HOW MANY STORIES
THEY GENERATE. THESE CONTRACTS
CAN ALSO DEPEND ON HOW MUCH
IMMEDIATE ORGANIZATION POSTING A
WEEK AND FOR SMALLER NEWSROOMS,
MULTIPLE STORIES A DAY. SEVEN
DAYS A WEEK IS NOT FEASIBLE.
THIS CAN LEAD TO TRIVIAL NEWS
POSTS OR SO CALLED CLICKBAIT. IN
A STUDY PUBLISHED IN POLICY AND
INTERNET, MISHA KESSEL, MANAGING
EDITOR AT THE CONVERSATION, A
NEWSROOM EMPLOYEES AROUND 30
PEOPLE DESCRIBE HOW IT'S
NEGOTIATIONS WENT WITH BOOK BOTH
GOOGLE AND FACEBOOK. GOOGLE ONLY
OFFERED IT ENOUGH MONEY TO FUND
ONE OR TWO JOURNALISTS. FACEBOOK
REFUSED TO DEAL WITH THEM AT
ALL. THERE SEEMS TO BE A TREND
FOR META IN GENERAL. BUT ALSO
NOTED THAT WHILE LARGER NEWS
ORGANIZATIONS HAVE BEEN ABLE TO
ADD MORE POSITIONS, THEY FILL
THEM BY POACHING STAFF, HE SAID,
EVEN THOUGH THE NEWS MEDIA
BARGAINING CODE IS MEANT TO HELP
PUBLIC INTEREST JOURNALISM, ONE
OF THE SLIGHTLY PERVERSE
OUTCOMES IS THAT IT IS PROBABLY
DONE MORE TO HELP BIG
ESTABLISHED PLAYERS THAN
ACTUALLY PROMOTE MEDIA DIVERSITY
. I'LL SHOW YOU IS MOOT NEWS
MEDIA BARGAINING CODE
ILLUSTRATES THE WEAKNESS OF A
PROPOSAL WRITTEN WITHOUT
CONSIDERATIONS. NOT CONSIDERING
THE RESOURCES OR NEEDS OF SMALL,
INDEPENDENT PUBLISHERS, WHICH
ARE OFTEN THE ONES WORKING
HARDEST TO BRING A DIVERSITY OF
VOICES, LOCAL COVERAGE AND
QUALITY NEWS FROM MARGINALIZED
COMMUNITIES TO LIGHT. THESE
NEWSROOMS HAVE LESS CAPACITY TO
BARGAIN AND LESS LEVERAGE IN THE
CASES, COMPANIES EVEN IN THE
CASES, COMPANIES EVEN AGREED TO
SIT AT THE TABLE WITH THEM. OR
SOME OTHER CONCERNING TRENDS
WITH AUSTRALIA'S LAW THAT ARE
WORTH NOTING AND KEEPING TRACK
OF THERE ARE NO RULES ABOUT HOW
THE MEDIA ORGANIZATION SPENDS
THE MONEY IT GETS OR EVEN
ACQUIRES IT INVESTED IN
EXPANDING THE NEWSROOM. THE CODE
GIVES THE MEDIA COMPANIES HAVE
SIGNED DEALS. NOTIFICATION ABOUT
THE CHANGE OF ALGORITHMS, WHICH
WILL GIVE THESE MEDIA COMPANIES
WHICH ALREADY OFTEN HAVE
RESOURCES TO HIRE SEARCH ENGINE
OPTIMIZATION AND SOCIAL MEDIA
EXPERTS, MORE INSIDE KNOWLEDGE,
LEAVING OUT SMALLER MEDIA
COMPANIES WHO CANNOT AFFORD
THESE EXPERTS TO BROKER THESE
DEALS. EVEN GOOD NEWS APPEARS TO
COME WITH A CATCH WHEN DEALS ARE
OFTEN AROUND SPECIFIC CONTENT
TYPES. THE GUARDIAN NOTED THAT
GOOGLE QUOTE WANTED CERTAIN
TYPES OF CONTENT AND THAT
ALIGNED WITH THE TYPE OF CONTENT
WE WANT TO DO EXPAND TO PRODUCE.
WE'VE SEEN WHAT HAPPENS WHEN
TECH PLATFORMS WANT CERTAIN
KINDS OF CONTENT BEFORE WHEN
FACEBOOK PUSH VIDEO IN THE U. S
WHICH TURNED OUT TO HAVE NOTHING
TO DO WITH SUPPORTING NEWSROOMS,
BUT DID APPEAR TO MISLEAD
ADVERTISERS. IT IS STILL UNCLEAR
IF THESE IF THESE CHANGES HOW
THE NEWS ORGANIZATIONS COVER
FACEBOOK AND GOOGLE, BUT IT'S
NOT DIFFICULT TO IMAGINE
SCENARIOS WHERE THE STRUCTURE OF
THESE DEALS COULD CAUSE EACH
ISSUES WITH EDITORIAL
INDEPENDENCE. TO CONCLUDE HERE.
LIKE OTHERS HAVE MENTIONED TODAY
WE BELIEVE IN FINDING WAYS TO
SUPPORT JOURNALISM. BUT
AUSTRALIA'S LAW HAS SHOWN HOW
DOING SO WITHOUT CONSIDERING
SMALLER PUBLISHERS AND
ALTERNATIVE NEWSROOMS CAN
JEOPARDIZE THE VERY TYPE OF
INVESTIGATIVE NEWS. WE'RE TRYING
TO SAVE AS LONG AS THE TWO TECH
COMPANIES HAVE THE AD DUOPOLY
BEHIND BEHAVIORAL ADVERTISING
TECH PLATFORMS WILL ALSO HAVE
THE LEVERAGE OVER THE NEWS
INDUSTRY AS A WHOLE. WORSE
AUSTRALIA'S LAW HAS GIVEN
FACEBOOK AND GOOGLE MORE POWER,
SINCE THEY CAN NOW CHOOSE THE
WINNERS AND LOSERS OF THEIR
CONTRACTS AND DEFINE WHAT
JOURNALISM IS. THANK YOU. THANK
YOU VERY MUCH, ALL RIGHT. MR
DOWN. THANK YOU SO MUCH. I THINK
YOU GET THE AWARD FOR TRAVELING
THE FARTHEST THANK YOU. UM UH.
CHAIRMAN UMBERG DISTINGUISHED
SENATORS. ASSEMBLYWOMAN WORKS.
THANK YOU AGAIN FOR THE
INVITATION AND THANK YOU FOR THE
OPPORTUNITY TO TALK A LITTLE BIT
ABOUT THE ONLINE NEWS ACT, WHICH
HAS MANY OF MY COLLEAGUES AND
OTHER PARTICIPANTS HERE TODAY
HAVE INDICATED COMES INTO FORCE
ON DECEMBER 19TH. 2023 A MERE
TWO WEEKS FROM NOW, SO WE ARE
VERY LITERALLY AT THE VERY END
OF THE VERY END HERE IN CANADA.
UM FOLLOWING AUSTRALIA'S EXAMPLE
IN 2021 WE SET APART WE SET UPON
FINDING A CANADIAN SOLUTION FOR
THE FUNDAMENTAL PROBLEM WITH THE
TECH MONOPOLIES THAT WE
EXPERIENCED AS YOU WERE
EXPERIENCING HERE IN THE UNITED
STATES. WE ESSENTIALLY PURSUED
UH, FIVE VALUES AS IN THE IN THE
CREATION OF THE ONLINE NEWS ACT
ONE NEWS IS A PUBLIC GOOD AND IT
IS IN CRISIS. TWO. NEWS COSTS
MONEY. I NOTICED I HAD A THERE
WAS ANOTHER PARTICIPANT HERE
FROM FROM THE LABOR UNION AND
90% OF OUR JOURNALISTS ARE
UNIONIZED IN CANADA, AND WE ARE
HAPPY THAT THEY ARE UNIONIZED.
WE ARE HAPPY TO COMMENTATE THEM,
BUT IT IS IMPOSSIBLE TO IGNORE
THAT THEIR SALARIES COST MONEY.
CREATING NEWS COST MONEY NUMBER
THREE NEWS IS ESSENTIAL TO
DEMOCRACY. IT IS ABSOLUTELY
CRITICAL THAT WE CAN STILL COME
TOGETHER AND INTERNALIZED FACTS
AND AGREE ON THE TRUTH. UM IT IS
THE CENTRAL COMPONENT OF A
REASONABLE CONVERSATION IN ANY
COMPANY. FROM ANY PERSPECTIVE,
AND SO WE BELIEVE THAT NEWS SITS
RIGHT IN THE CRADLE OF
DEMOCRACY. NUMBER FOUR NEWS HAS
VALUE. FOR TOO LONG FOR OVER 15
YEARS, NEWS WAS ESSENTIALLY
ENTERED INTO SOME SORT OF A
ARRANGEMENT WITH TECH COMPANIES
WHEREBY WE TRADE THE EXPERTISE.
WE TRADE THE INVESTIGATIVE WORK.
WE DO. WE TRADE THE SORT OF
CYNICISM AND EVALUATIVE
PROPERTIES OF OUR WORK. IN
EXCHANGE FOR MORE EYEBALLS IN
EXCHANGE FOR MORE VIEWS AND
CLICKS. THE REALITY IS THAT
PROPOSITION HAS NOT BEING EQUAL.
AND IT NEEDS TO BE ADDRESSED AND
THE FIFTH VALUE FOR US, AND IT
IS ESSENTIALLY A SUMMARY OF WHAT
WE'VE HEARD TODAY IS IT'S FAIRLY
CLEAR TO ANYBODY WHO IS
PARTICIPATING IN THIS
CONVERSATION. THE STATUS QUO IS
NOT WORKING. YOU WOULD NOT HAVE
ENDLESS STREAMS OF COMPANIES,
LARGE SMALL ETHNIC IN OUR CASE
IN CANADA, INDIGENOUS RURAL
REMOTE COMING THROUGH TO DISCUSS
POLICY OPTIONS AND ASKING
GOVERNMENT FOR POLICIES
SOLUTIONS IF THE STATUS QUO WAS
WORKING. I HAD TO SHAKE MY HEAD
AND FULL TRANSPARENCY. THE
TORONTO STAR. WE DO HAVE A
GOOGLE DEAL. WE DO HAVE A DEAL
WITH META. AND WE ARE THANKFUL
FOR IT AND THERE IS INCREDIBLE
VALUE THAT THEY CAN PROVIDE US
AS WE MOVE FORWARD, BUT THE
REALITY IS THERE ARE MONETARY
AND NON MONETARY VALUES AND IF
THE STATUS QUO WAS WORKING FOR
US AT THE TORONTO STAR AT
TORSTAR PARENT COMPANY, WE WOULD
NOT HAVE TO HAVE LAID OFF 600.
OF OUR BROTHERS AND SISTERS AMIR
COUPLE OF MONTHS AGO. THE
REALITY IS THIS INDUSTRY IS ON
THE BRINK. IT REQUIRES IN MY
OPINION LEADERS AND LAWMAKERS TO
ADDRESS SOME OF THESE SOLUTIONS,
BUT THAT TECH DOES HAVE A ROLE
TO PLAY IN THE SOLUTION. AND SO
I'M I'M HERE TO BRING YOU
GREETINGS FROM THE FUTURE. I AM
HERE TO, UM, TALK A LITTLE BIT
ABOUT THE VALUE OF NEWS BECAUSE
THERE'S BEEN A LOT OF DISCUSSION
OF IT IN THE ABSTRACT. MY
COLLEAGUES HERE HAVE DISCUSSED
AUSTRALIA BEHIND CLOSED DOORS,
ETCETERA, ETCETERA, I HAVE
BROUGHT ESSENTIALLY GOVERNMENT
SLIDES. TO DISCUSS HOW THE
GOVERNMENT IN THE IN THE CASE OF
C 18, OR THE ONLINE NEWS ACT
WILL CALCULATE VALUE AND I'M
HOPING I'LL HAVE ONE OF MY
COLLEAGUES HELP ME LOAD THE
PRESENTATION. UM WHAT YOU WILL
SEE THROUGHOUT THIS, UM
PRESENTATION IS. A FEW THINGS
THAT I THINK ARE REALLY WORTH
UNDERLYING NUMBER ONE. TECH HAD
TO BE COMPELLED. TO PAY. THERE
WERE DEALS STRUCK BEFORE THE
LEGISLATION WAS INTRODUCED. BUT
THE REALITY IS AS MY ESTEEMED
COLLEAGUE HERE HAS TALKED ABOUT
IN AUSTRALIA, WHERE THERE ARE A
COUPLE OF YEARS AHEAD OF US. WE
ARE LOOKING AT DEALS NOT BEING
RENEWED IN THAT SITUATION, AND
SO THAT WAS A GREAT FEAR FOR US
AT TORSTAR WAS THAT WE HAVE A
DEAL, BUT IN TWO OR THREE YEARS
WHEN THE GOVERNMENT TURNS ITS
EYES TO SOMETHING ELSE THAT
THESE TECH PLATFORMS WILL SAY
THANK YOU VERY MUCH FOR THE
STRENGTH FOR THE TEMPORARY
RELATIONSHIP, AND NOW WE MOVE ON
AND MOVE BACK TO USING YOUR
CONTENT FOR FREE. UM THE SECOND
AND IT'S A GREAT POINT THAT A
NUMBER OF FOLKS HAVE MADE. I
WON'T BELABOR IT. BUT IN THE
ONLINE NEWS ACT SMALL LOCAL,
ETHNIC AND INDIGENOUS PUBLIC
PUBLISHERS WILL
DISPROPORTIONATELY BENEFIT MORE.
PER REPORTER. BEN LARGE
COMPANIES LIKE TORSTAR, LIKE THE
GLOBE AND MAIL, ETCETERA,
ETCETERA. THE WAY THAT THE
GOVERNMENT HAS CONSISTENTLY
UNDERLINED FOR THE TECH
PLATFORMS AND FOR US THAT SMALL
LOCAL PUBLISHERS NEED ADDITIONAL
SUPPORT HAS BEEN ADMIRABLE, IN
MY OPINION, BECAUSE THE CREATION
OF NEWS DESSERTS, AS WE'VE SEEN
AND HEARD HERE TODAY LEADS TO
VACUUMS LEADS TO A SWIRL OF
MISINFORMATION AND LEADS TO A
LOT OF DISSERVICE OF THE PUBLIC
UTILITY OF NEWS FOR COMMUNITIES
THAT ARE NOW DESSERTS
ESSENTIALLY. SO I WILL GO VERY
QUICKLY. I PROMISE THAT SEEING
AS I'M THE LAST PERSON BETWEEN
YOU ALL AND YOUR FAMILIES, UM,
BUT THE ONLINE BETWEEN OKAY
ALRIGHT SO, AND A BRIEF OVERVIEW
IS THAT THE ONLINE NEWS ACT
CREATES A BARGAINING FRAMEWORK.
AND IT INCENTIVIZES VOLUNTARY
COMMERCIAL AGREEMENTS. THE
REASON I UNDERLYING INCENTIVIZES
VOLUNTARY COMMERCIAL AGREEMENTS.
IT IS BECAUSE NO TAXPAYER MONEY
CHANGES HANDS. THESE ARE
AGREEMENTS BETWEEN PRIVATE TECH
COMPANIES AND PRIVATE
PUBLISHERS. SECOND THE
REGULATORY FRAMEWORK PROVIDES
CLARITY FOR PARTICIPANTS TO
WHICH PLATFORMS DOES THE ACT
APPLY? WE'VE HAD A LOT OF
CONVERSATION TODAY ABOUT GOOGLE.
WELL DESERVED A LOT OF
CONVERSATION ABOUT META WELL
DESERVED, BUT I'M ASKING WHICH
VERSION OF META ARE WE REALLY
DISCUSSING? ARE WE DISCUSSING
FACEBOOK? ARE WE DISCUSSING
INSTAGRAM? OR ARE WE DISCUSSING
THREADS, WHICH BY ALL ACCOUNTS
IS A PLACE WHERE NEWS COULD BE
DISTRIBUTED AND THRIVING. AND SO
WHILE META. OUR COLLEAGUES IN
CANADA HAVE, AS HAS BEEN
INDICATED, SHUT OFF NEWS IN
CANADA. WHAT ABOUT THREADS? WHAT
ABOUT INSTAGRAM? WHAT ABOUT
SCREENSHOTS? AND SO WE WENT TO
THE GOVERNMENT AND ASKED THEM
WHAT HAPPENS IF A SCREENSHOT IS
SHARED. AS A SUBSTITUTE TO A
LINK. $10 MILLION FINE. FOR
META. IF THAT'S THE CASE. SO WE
HAVE BEEN VERY HAPPY WITH THE
GOVERNMENT, SETTING UP A
FRAMEWORK THAT WILL ALLOW
PARTICIPANTS TO BE CLEAR TO HAVE
PLATFORMS BE CLEAR ABOUT THEIR
ROLES AND OBLIGATIONS WITH UNDER
THE LAW AND ALSO FOR EMERGING
PLATFORMS. SO WE ALL HAD A GOOD
LAUGH ABOUT MICROSOFT EARLIER.
NO OFFENSE TO ANYONE HERE WHO
WORKS ON MICROSOFT. BUT IN
CANADA AND A FEW MONTHS THEY
WILL BE COMPELLED UNDER THIS
LAW. TIKTOK IS AN EMERGING PLACE
WHERE NEWS IS TRAVELING QUICKLY.
ALSO POTENTIALLY COMPELLED.
UNDER THIS LAW. I WILL GO OUT IN
THE NEXT SLIDE HERE AND TALK
ABOUT HOW THEY ARE. HOW THE ACT
IS APPLIED TO THESE COMPANIES TO
BE SPECIFIC ABOUT HOW THEY WILL
EVOLVE AND GROW OVER TIME AND BE
COMPELLED. BUT IT IS IMPORTANT
FOR US TO TALK ABOUT. AND I
ALWAYS SHAKE MY HEAD WHEN THEY
CALL HIS LEGACY MEDIA SO I'LL DO
IT. I GUESS A GOOD TURNING
TRICK. LEGACY TECH UM VERSUS
NEW, SUPER COOL. FORWARD LOOKING
TECH. LIKE TIKTOK, FOR EXAMPLE,
WHERE THESE EMERGING TECH
PLATFORMS ARE NOW ALSO NEEDING
TO BE REGULATED IN A WAY THAT
MAKES UP FOR THE LESSONS LEARNED
AND CAN APPLY LESSONS TO THE
FUTURE. SO THE APPLICATION OF
THE ACT AS PER THE CANADIAN
GOVERNMENT IS A BILLION DOLLARS
OR MORE IN CALENDAR YEAR OF
REVENUE. OPERATES THE SEARCH IN
A SEARCH ENGINE OR SOCIAL MEDIA
MARKET IN CANADA, AND HERE IS
THE KEY DESIGNATION 20 MILLION
OR MORE CANADIAN AVERAGE MONTHLY
UNIQUE VISITORS. SO THEY ARE NOT
OUT TO CRUSH INNOVATION THERE IN
CANADA, THEY ARE NOT OUT TO
CRUSH COMPETITION TO THESE
PLATFORMS. ESSENTIALLY THEY ARE
SAYING, IF YOU REACH MARKET
SHARE IF YOU REACH IMPACTFUL
MARKET SHARE YOU ARE GOING TO BE
DESIGNATED UNDER THE ACT. AND
THESE THESE FOLKS HAVE 30
CALENDAR DAYS TO NOTIFY THE CRTC
, WHICH IS THE CANADIAN
REGULATORY BODY. UH UPON MEETING
THESE CRITERIA, AT WHICH POINT
THEY ARE COMPELLED TO UH, START
NEGOTIATING DEALS WITH PLATFORM
OR WITH PUBLISHERS. THE REST OF
THIS IS QUITE COMMON SENSE TO
ME. THEY HAVE A 60 DAY OPEN CALL
PROCESS. IT IS IMPORTANT TO NOTE
THAT THESE REGULATIONS ARE NOT
FINAL. SO THIS PRESENTATION IS
EVER EVOLVING AS WE SAW WITH THE
RECENT ANNOUNCEMENT OF THE
GOOGLE AND UM AND CANADA
ARRANGEMENT WITH OVER $100
MILLION, THOSE CONVERSATIONS ARE
STILL ONGOING, BUT IT IS
IMPORTANT TO UNDERLINE THAT
COMPENSATION CAN INCLUDE BOTH
MONETARY AND NON MONETARY
CONTRIBUTIONS. AGAIN I AM NOT
ANTI GOOGLE. WE HAVE BENEFITED
AT THE TORONTO STAR GREATLY FROM
OUR PARTNERSHIP WITH GOOGLE.
THEY HAVE TAUGHT US A LOT AND
HAVE ENHANCED OUR VALUE AS AS A
PLATFORM. WE ARE SIMPLY LOOKING
FOR WHAT WE CONSTITUTE AS A FAIR
SHARE OR AS OTHERS HAVE CALLED A
LEVELING OF THE PLAYING FIELD.
SO HERE NOW WE'RE GOING TO GET
SUPER GRANULAR ABOUT THE DOLLAR
AMOUNT. FORTUNATELY MR ADAM,
YOU'RE GONNA HAVE TO GET SUPER
GRANULAR RESPONSE TO MY
QUESTIONS. NO PROBLEM. NO
PROBLEM. I WILL JUST SAY ONE
LAST THING, WHICH IS THAT WE
FOUGHT HARD WITHIN THE CONTENT
OF THIS BILL TO SUPPORT LOCAL
INDIGENOUS AND OFFICIAL LANGUAGE
, MINORITY COMMUNITY NEWSPAPER
BUSINESSES AND THE LAST ITEM
SHOWING YOU IS WE ARE LITERALLY
AT THE LAST BOX IN THE NEXT TWO
WEEKS. WE WILL FIND OUT EXACTLY
HOW THIS LEGISLATION HAS WORKED
OUT FOR US QUITE SOON. THANK YOU
SO MUCH. OK SENATOR ALAN, I'M
UNFORTUNATELY NOT GOING TO MY
FAMILY RIGHT NOW. I WISH I GOT
TO RUN DOWN TO VENICE FOR A
KEYNOTE AND I'M TRAFFIC'S BAD,
SO I'M GONNA BE LISTENING TO THE
REST OF THE CONVERSATION ON MY
PHONE. I KNOW THAT TOM WILL BE
ASKING SOME REALLY GOOD
QUESTIONS. I KNOW THERE'S GONNA
BE SOME GOOD PUBLIC COMMENT AS
WELL. SO I REALLY DO APPRECIATE
ALL THE PARTICIPATION OF THE
PANELISTS AND IT'S BEEN IT'S
BEEN REALLY FANTASTIC. REALLY DO
APPRECIATE IT. THANK YOU,
SENATOR ALLEN. UM ONE OF THE
WORST THINGS ABOUT BEING A
LEGISLATOR IN CALIFORNIA. BEING
STUCK IN TRAFFIC IS IF YOU WANT
TO SAY SOMEBODY SHOULD DO
SOMETHING ABOUT THIS CENTER ALAN
AND THEN YOU CALL IT RIGHT. YOU
CALL YOURSELF RIGHT? SO I HAVE
SEVERAL QUESTIONS THAT I'M
PARTICULARLY IN THE CANADIAN
MODEL FIRST, UM SOMEHOW, I
UNDERSTOOD THERE WAS A TAX
CREDIT COMPONENT TO WHATEVER WAS
DONE IN CANADA IS THAT ACCURATE
IS A JOURNALISM LABOR TAXES. IN
HIS SEVEN. WE HAVE BEEN
SUCCESSFUL. IN THE LAST COUPLE
OF WEEKS, THE GOVERNMENT HAS
ANNOUNCED IT WILL INCREASE IT TO
35% WHICH IS A MEANINGFUL IMPACT
. IT WILL ALSO RAISE THE CEILING
, WHICH FOR WHAT CAN BE
CONSIDERED FROM 55,000 PER
EMPLOYEE TO 85,000 PER EMPLOYEE,
AND SO WHILE IT IS APPRECIATED
AND RELEVANT IN THIS SPACE, IT
IS NOT DIRECTLY LINKED TO THIS
TYPE OF LEGISLATION. YOU MAY
CHOOSE TO. MAKE IT IF YOU WANT
TO, BUT IT IS NOT IN THE
CANADIAN CONTEXT DOES SEEM LIKE
THAT. IS THE GOVERNMENT
SUPPORTING, YOU KNOW ME AND I
GET YOUR POINT. STOP LINKED, BUT
CERTAINLY. IT'S SO.
COMPLEMENTARY COMPLEMENTARY AND
IT'S NOT UNBEKNOWNST TO DISTANCE
SO ALRIGHT. ALSO YOU SAID, YOU
HAD A DEAL WITH METAL. I WAS
UNDER THE IMPRESSION THAT METAL
IS NO LONGER PROVIDING CONTENT
YOU CAN WITH THAT ACCURATE OR
NOT. IT'S FUNNY HOW THAT COMES
OUT, SO WE STRUCK A DEAL WITH
META A COUPLE OF YEARS AGO. THE
ESCAPE CLAUSE WITHIN OUR DEAL
WITHOUT BEING ABLE TO DISCUSS
YOU KNOW, THE PARTICULARS UNDER
N. D A IS ESSENTIALLY WHEN A
BILL LIKE THE ONLINE NEWS ACT
COMES INTO FORCE. THEY'RE THEN
ABLE TO ESSENTIALLY NULLIFY THE
DEAL BECAUSE THE BILL AND THE
ENFORCEMENT OF IT COMES INTO
PLACE, AND ON DECEMBER 19TH.
THEY ARE UNABLE, BEST PART TO
KIND OF WITHDRAWAL. WE ARE
EXPECTING THEM TO DO THAT, BUT
SO FAR WE HAVE YES ENJOYED A
DEAL FOR CONTENT, LICENSING AND
OTHER PROJECTS WITH BOTH GOOGLE
AND MATTER. BUT IT IS MAYBE I
DIDN'T HEAR THIS IS MEDIC
CURRENTLY PROVIDING MEDIA
CONTENT OF JOURNALISM CONTENT
ONLINE. THEY'RE NOT THAT YOU
ANTICIPATE THEY WILL. WE
ANTICIPATE THAT NOW THAT THE
GOOGLE CANADA SITUATION HAS BEEN
RESOLVED THAT FACEBOOK OR META
HAS A COUPLE OF WEEKS TO DECIDE
WHETHER THEY ARE TRULY LEAVING
THE CANADIAN MARKETPLACE WITH
THE RESPECTIVE NEWS OR THAT THIS
WAS A NEGOTIATING TACTIC
DESIGNED TO LOWER THE DEFENSES
OF THE CANADIAN GOVERNMENT AND
SUBSEQUENTLY TERRIFIED SMALL
PUBLISHERS. UM MOVING FORWARD
WILL TELL WHETHER IT'S A THREAT
OR WHETHER THIS IS AN ACTUAL
DECISION. CORRECT NOW THERE ARE
PLENTY OF INTERNATIONAL EVIDENCE
AS OUR COLLEAGUES HAVE DISCUSSED
HERE THAT THEY ARE POTENTIALLY
MOVING AS A COMPANY AWAY FROM
NEWS, HOWEVER, UM MY PERSONAL
BELIEF IS THAT CANADA IS A VERY
VALUABLE MARKETPLACE TO THEM.
NEWS HAS VALUE AND THEREFORE
THIS COULD BE TO LOWER THE
PRICE. OKAY? UM AND MR MCHALE IS
GOOGLE PULLED OUT OF ANY
COUNTRY. SPEAK. SPAIN LONGER.
PROVIDES ANY JOURNALISM CONTENT
AND IN SPAIN THAT WAS FOR THE
NEWS SERVICE NOT NOT SEARCHED.
BUT THE SPECIFIC NEWS SERVICE
THAT GOOGLE OFFERS. THEY PULLED
OUT WHEN THERE WAS A MANDATORY
THIEF FOR EVERY LINK THAT WAS
PROVIDED. SPAIN SUBSEQUENTLY
IMPLEMENTED THE EU Y ACT THAT I
MENTIONED. AND THERE ARE NO NO
LONGER SUBJECT TO A MANDATORY
LICENSE. IT IS A VOLUNTARY
NEGOTIATIONS, SO BASED ON THE
FACT THAT IT'S UH, VOLUNTEERING
NEGOTIATION, THEY MY
UNDERSTANDING IS THAT COME BACK
IN. OKAY SO IF I SEARCH GOOGLE
AND I'M LOOKING FOR SOMETHING
THAT MAY BE IN A SPANISH
PUBLICATION. I COULD FIND THAT
TODAY. YOU WOULD ALWAYS BE ABLE
TO FIND IT ON SEARCH. THEY
DIDN'T HAVE THE DEDICATED GOOGLE
NEWS SERVICE. BUT NOW MY
UNDERSTANDING IS THAT'S BACK UP
IN SPAIN, SPAIN ANYPLACE ELSE
THAT THAT GOOGLE HAS PULLED OUT
OF THEY THOUGHT ABOUT IT IN
AUSTRALIA. THEY DID DONALD KNOW
ABOUT CANADA ABOUT META. ANY
PLACE THAT MET HAS PULLED OUT.
THEY TRIED IN AUSTRALIA. THAT
WAS THE ONLY OTHER, UH,
ALTERNATIVE AND IN CANADA.
THEY'RE THEATER CURRENTLY OUT SO
THAT CURRENTLY ONLY CANADA IS
THE ONLY PLACE THAT META IS OUT.
BECAUSE IT'S THE ONLY COUNTRY
THAT HAS HAD THIS MANDATORY. YOU
MUST PAY REGIME UNTIL YOU'RE
FACED WITH A MANDATORY YOU MUST
PAY REGIME THAT THERE'S NO NO
INCENTIVE TO BELIEVE IF THEY'RE
GAINING VALUE. ALRIGHT, ALRIGHT.
IN TERMS OF LESSONS LEARNED, AND
I REALIZED THAT THIS IS A WORK
IN PROGRESS IN CANADA. WHAT WHAT
LESSONS LEARNED TO HAVE FOR US
HERE IN CALIFORNIA, AND I
UNDERSTAND. I MEAN, WE WERE ONE
STATE AMONG 50. THERE'S I WOULD
SAY AN ARGUMENT FOR FEDERAL
LEGISLATION SLASH INTERVENTION
VERSUS STATE BY STATE
INTERVENTION. GO AHEAD. I WOULD
SAY IT'S IMPORTANT IT'S
APPROPRIATE NOT TO CLASSIFY ALL
TECH IN THE SAME WAY. AS WE'VE
HEARD THE REST THROUGH THE REST
OF THE DAY. THERE ARE DIFFERENT
WAYS IN WHICH TECH INTERACTS
WITH NEWS IN DIFFERENT WAYS. SO
IT'S IMPORTANT AS YOU
CONTEMPLATE YOUR LEGISLATION TO
DO THAT. THE SECOND IS BE
PREPARED FOR A LOT OF THEATRICS.
UM, THERE IS A LOT OF. WORKING
WITH SMALL PUBLISHERS. TO
ENHANCE THEIR FEAR AND THREATEN
AN EXISTENTIAL SORT OF NEWS FREE
ENVIRONMENT. UM. BE PREPARED FOR
THAT, AND THE THIRD IS BE BOLD.
AS LEGISLATORS. UM IT IS VERY
DIFFICULT TO IMAGINE THE FREE
MARKET. ESSENTIALLY REGULATING
ITSELF IN THIS WAY, AND SO
WITHOUT GOVERNMENT INTERVENTION.
UM, THE STATUS QUO REMAINS. AND
THE FOURTH YOU HAVE AS
CALIFORNIANS AS THE HOMES OF
THESE TECH COMPANIES, I BELIEVE
A UNIQUE VOICE. INSOFAR AS YOU
EMPLOY. PEOPLE IN CALIFORNIA.
THESE COMPANIES, SOME OF THEM
WERE INVENTED IN CALIFORNIA, AND
SO THEREFORE HAS LEGISLATORS.
YOU KNOW THE COMPLETE ORIGIN
STORY AND I THINK CAN
APPROPRIATELY ENSURE THAT
JOURNALISM IS PROTECTED AS WELL
AS TECH COMPANIES ARE
APPROPRIATELY SORT OF, UM
THOUGHT OF AS. POSITIVE ACTORS
USEFUL, ALTHOUGH. YOU DON'T HAVE
A MONOPOLY. YOUR HEALTH. SO
THANK YOU, OKAY. LESSONS
LEARNED. I'M GOING TO ASK EACH
PANELIST, IF YOU WERE IN OUR
POSITION, ONE OF THE LESSONS
SHOULD WE LEARN FROM OF
INTERNATIONAL EXPERIENCES
STARTING IT WAS LOST. UM, SURE,
I THINK. AUSTRALIA REALLY SHOWS
HOW IMPORTANT TRANSPARENCY WOULD
BE, ESPECIALLY FOR SMALLER
PUBLISHERS AND KNOWING WHETHER
THEY'RE GETTING A GOOD DEAL OR A
TERRIBLE ONE. THANK YOU. YEAH,
I'M ONE OF THE THINGS THAT WAS
NOTABLE IN CANADA AND, UM
AUSTRALIA AS THEY TARGETED, UH,
THE MEASURES TO THE COST OF THE
COMPANY. AND SO WHEN YOU DO
THAT, WHETHER IT'S THE NUMBER OF
EXISTING JOURNALISTS YOU HAVE OR
YOUR INSTALLED BASE OF EQUIPMENT
, ETCETERA. YOU ARE GOING TO
BENEFIT THE LEGACY COMPANIES AND
YOU ARE GOING TO DISINCENTIVIZE
OTHER FOLKS THAT DON'T HAVE THAT
LEGACY COST STRUCTURE BECAUSE
THEY WON'T GET PAYMENTS BECAUSE
THEY WERE KEYED TO THE COST
STRUCTURE. THE OTHER THING I
THINK THAT IS NOTABLE IN MANY OF
THESE MARKETS AS IT DOES
INCREASE MEDIA CONCENTRATION. UM
THE BIG COMPANIES ARE AND THE
WAY THESE ARE SET UP IN ORDER TO
BE IMPLEMENTED. END UP BEING THE
ONES THAT GET THE FUNDS AND
THEREFORE YOU ARE CROWDING OUT
OTHER INNOVATORS THAT COULD HAVE
ENTERED THE MARKET AND PROVIDED
A COMPETITIVE ALTERNATIVE AND
MORE TECHNOLOGICALLY AND MARKET
DRIVEN ALTERNATIVE RATHER THAN
JUST PERPETUATING A BUSINESS
MODEL THAT IS UNDER STRESS, BUT
MAY NOT BE THE BEST ONE GOING
FORWARD. THANK YOU LISTEN AND MR
. WE JUST GOT THIS. UM I OPENED
IT UP AND I SEE THE VERY FIRST
CHAPTER SAYS WHAT'S IT SAY? THE
NEXT REFERENCE TO ENEMIES. BEST
OF BENJAMIN'S, SO I LOOK FORWARD
TO READING IT. WHAT LESSONS
SUGGEST THAT WE LEARN UH YES, I
WOULD REITERATE THE IDEA AROUND
TRANSPARENCY BUT ALSO
TRANSPARENCY INTO THE DATA THAT
IS HELD SPECIFICALLY BY
PLATFORMS ENABLE TO ALLOW BOTH
POLICYMAKERS AND JOURNALISTIC
OUTLETS TO CORRECTLY ASSESS
VALUE. BECAUSE RIGHT NOW, THE
INFORMATION ASYMMETRIES DO NOT
ALLOW THAT. I THINK SIMILARLY,
THESE SPECIFIC INTERVENTIONS,
POLICY INTERVENTIONS DID NOT
TAKE PLACE IN A VACUUM. THE THIS
IS NOT A SILVER BULLET. THESE
POLICIES WILL SEE WHAT HAPPENS
IN CANADA, BUT INITIALLY IS
DESIGNED BASED AROUND TRAFFIC.
LARGER NEWS OUTLETS HAVE
TRAFFIC. YES THEY BENEFIT LARGER
NEWS OUTLETS. THE KEY POINT IS
IN AUSTRALIA. THERE WERE LIKE 23
OTHER POLICY INTERVENTIONS TO
SUPPORT JOURNALISM AND CANADA.
THERE ARE A HOST OF OTHER
SUBSIDIES, TAX CREDITS, ETCETERA
THAT ARE GOING TO SUPPORT
JOURNALISM. SO I KNOW IN THE U.
S. WE HAVE A CHALLENGE WITH OUR
YOU KNOW OUR POLITICS AND OUR
CONGRESSIONAL SYSTEM, BUT WE
CANNOT LOOK AT LIKE WE DON'T
ONLY GET ONE CHANCE WE NEED THIS
TO BE A PACKAGE WOULD ALSO SAY
THERE IS ZERO EVIDENCE THAT THIS
HAS LED TO MEDIA CONSOLIDATION.
IN FACT, WHEN I HAVE SPOKEN WITH
PUBLISHERS, INCLUDING AN L G B T
Q PUBLISHER IN AUSTRALIA AND
LIKE A PROPERTY JOURNAL
PUBLISHER, THEY ARE VERY HAPPY
ABOUT THIS. THEY HAVE BENEFITED
SO I THINK THAT THE EVIDENCE
CONTRADICTS THAT. ALSO I THINK
THAT WE NEED YOU NEED TO BE VERY
CAREFUL ABOUT THE MANIPULATION
AND INTIMIDATION TACTICS THAT
THE BIG TECH COMPANIES WILL
CONVEYED DURING THIS PROCESS. I
JUST TESTIFIED THIS MORNING TO
THE CANADIAN PARLIAMENT ABOUT
INTIMIDATION AND SUBVERSION BY
BIG TECH TO EVADE REGULATION,
AND ONE OF THE THINGS THAT THEY
DID IN AUSTRALIA WAS DURING
PARLIAMENTARY DELIBERATIONS OVER
THE BARGAINING CODE. AS PART OF
THEIR NEGOTIATION TACTICS, THEY
IMPEDED SHARING LINKS. DURING
THAT TIME ON META. WE KNOW THAT
FROM A WHISTLEBLOWER AND THAT
THEY THEY HAVE PRESSURED
JOURNALISTIC OUTLETS TO KILL
STORIES THAT ARE COVERING, FOR
EXAMPLE, ON YOUR SHIFFRIN AND
THE COLUMBIA STUDY THAT WE
MENTIONED THEY KILLED COVERAGE
OF THAT STORY IN ORDER TO IMPEDE
OUR ABILITY TO HAVE AN INFORMED
CONVERSATION. SO I WOULD SAY, BE
VERY CAREFUL. AND THAT AS YOU'RE
CONSIDERING MORE BROADLY
LEGISLATION BEYOND JUST THIS,
MAKE SURE YOU'RE BRINGING IN
OTHER REPRESENTATIVES FROM TECH
COMPANIES, NOT JUST THE BIG GUYS
SO THAT YOU'RE REALLY HEARING
FROM A WIDE VARIETY OF ENTITIES
AND FINALLY MAKE SURE THAT YOU
INCLUDE GENERATIVE AI CRAWLING
AND USE AND LARGE LANGUAGE
MODELS. OTHERWISE, WE'RE ONLY
FIGHTING LAST YEAR'S BATTLE. NO,
AND THIS IS YOU'RE RIGHT AND IN
TERMS OF A I THAT'S A WHOLE
NOTHER HEARING AND A WHOLE
ANOTHER. KETTLE OF FISH AND A
WHOLE OTHER SET OF CHALLENGES
THAT WE FACE IN MANY DIFFERENT
ASPECTS. SO UH, ALRIGHT. WELL,
LET ME THANK ALL OF YOU HERE FOR
COMING. I'VE LEARNED A LOT. I'VE
GOT A LOT MORE TO LEARN. UH THIS
IS A INCREDIBLY IMPORTANT ISSUE
FOR THOSE OF US. AND I THINK
EVERYONE IN THIS ROOM CARES
ABOUT OUR DEMOCRACY. AND AS
WE'VE SEEN THE PROLIFERATION OF
MISINFORMATION AND HOW THAT CAN
IMPACT THE ELECTORATE HOW THAT
CAN IMPACT IMPACT OUR WAY OF
LIFE. BACK TO OUR HEALTH. AND SO
WE REALLY WANT TO GET THIS RIGHT
. UM AND SO WE'LL BE ENDEAVORING
FOR SOME PERIOD OF TIME TO WORK
ON THAT, SO I HOPE YOU'LL
PROVIDE US OPPORTUNITY TO RE
ENGAGE WITH EACH OF YOU, UM AS
WE WERE ON THIS JOURNEY, SO
THANK YOU. AND I'M GOING TO TURN
NOW TO PUBLIC COMMENT, SO UM,
PUBLIC COMMENT. IF YOU'D
APPROACHED THE MICROPHONE, WE
CAN LINE UP. I THINK THE
SERGEANTS ARE HERE GOING TO BE
HERE TO ASSIST US. UM, IF YOU
IDENTIFY YOURSELF AND YOUR
ORGANIZATION AND YOU HAVE ONE
MINUTE MY NAME IS CHERYL BROWN.
I AM THE CHAIR OF THE CALIFORNIA
COMMISSION ON AGING. I'M
SPEAKING TODAY BECAUSE I'VE SAT
THROUGH THE WHOLE HEARING AND
NOBODY REALLY LOOKED AT ANYONE
WHO'S AN AGING SPACE. I THINK
IT'S VERY IMPORTANT THAT WE
INCLUDE OLDER POPULATION AND NOT
EXCLUDE THEM IN THIS WHOLE
CONVERSATION. BECAUSE THEY'RE
THE ONES THAT ARE REALLY
HURTING, AND THEY MADE IT
POSSIBLE FOR YOU TO BE HERE TO
DO ALL OF THIS. THANK YOU.
APPRECIATE IT. I'M ONLY 39 YEARS
OLD, BUT I'M MARRIED TO SOMEONE.
THAT'S A LITTLE OVER. SO YEAH.
OKAY. THANK YOU. HI GOOD
AFTERNOON. I DON'T REPRESENT
ANYONE. I'M I'M I'VE BEEN
WORKING WITH SUSTAINABILITY. MY
I LIVE IN TEMPLE CITY. I'M A
LOCAL RESIDENT OF CALIFORNIA.
BUT I HAVE AN INTERNATIONAL
PERSPECTIVE BECAUSE I'VE BEEN
WORKING WITH OPEN SOCIETY WITH
MDF INTERNATIONAL ORGANIZATIONS
THAT ARE FUNDING INDEPENDENT
COMMUNITY MISSION DRIVEN
JOURNALISM ALL OVER THE WORLD.
MY PERSPECTIVE IS INTERNATIONAL
AND WHAT I WOULD SAY IS IF WE
CHANGE THE PERSPECTIVE AND SEE
THAT WE'RE NOT HERE PROTECTING
NEWS BUSINESS, PROTECTING
PEOPLE'S RIGHT TO KNOW. THE
INFORMATION AND JOURNALISM IS A
PUBLIC GOOD. IF THAT'S THE CASE,
THEN WE'RE TALKING ABOUT THREE
ASPECTS. FUNDING. ABILITY AND
THE BUSINESS MODELS, AND THE
PROBLEM IS THAT THOSE THREE
THINGS ARE COLLUDED, RIGHT? I
THINK THAT IF THE SEAT G P A,
WHICH IS RIGHT NOW IN THE WORKS,
LET'S TALK ABOUT A QUICK WIN. I
THINK THAT THE QUICK WIN COULD
BE BOTH AND ADVERTISING, NEUTRAL
, TRUST US TAX. FORGET ABOUT THE
BUSINESS AND THE REVENUE. IT'S
SUCH A HUGE PROBLEM THAT YOU'RE
NOT GOING TO SOLVE IT. NOW, BUT
IF YOU WANT TO ALLOCATE AND
FUNDING THE EASIEST WAY, THE
SHORTEST WAY TO HELP THANK YOU,
MA'AM. AND AS I SAID, BEFORE, WE
ACTUALLY CAN READ SO I KNOW THAT
MANY PEOPLE DON'T BELIEVE THAT.
BUT WE CAN'T. SO IF YOU SUBMIT
SOMETHING TO US IN WRITING, I'LL
READ IT. THANK YOU. THANK YOU
VERY MUCH. HI I'M SANDY CLOSE.
I'VE WORKED IN THE MEDIA SECTOR
FOR ABOUT 25 YEARS AND, UH, I
WANTED TO ADDRESS THE VERY
IMPORTANT QUESTION. YOU ASKED
WHAT IS DIFFERENT ABOUT ETHNIC
MEDIA? WHAT WAS GREAT ABOUT
TODAY'S HEARING WAS THAT THERE
WAS RECOGNITION THAT ETHNIC
MEDIA IS INDEED A DISTINCTIVE
GENRE. A SEPARATE SEGMENT OF
AMERICAN JOURNALISM SO LONG IT'S
BEEN, I WOULD SAY THE BIGGEST
DIFFERENCE IS THAT IT IS
INVISIBLE. IT IS ISOLATED, AND
IT IS MISUNDERSTOOD. IF
OVERNIGHT SUDDENLY I THINK MEDIA
WERE TO DISAPPEAR. 40% OF THE
STATE WOULD KIND OF GO SILENT.
THEY'D BE CUT OFF. BECAUSE SO
MUCH OF THAT THINK MEDIA SERVES
IMMIGRANT NEWCOMER RECENTLY
SETTLED. THE NEWEST ETHNIC MEDIA
OUTLET I KNOW IS MONGOLIAN. 1000
MANGAL MANGAL. YOU'RE LIVING IN
THE AREA AND SO I WOULD LOVE TO
FOLLOW UP DISTINCTIVE, JONAH. MY
NAME IS JULIAN DOUGH WITH I
THINK MR SERVICES AND WE
REPRESENT NEARLY 300. I THINK
MEDIA OUTLET IN THE STATES. AND
AS MY PREVIOUS SPEAKERS SPOKEN,
IS THAT RIGHT NOW THE MAJORITY
OF THE POPULATION CALIFORNIA IS
ACTUALLY THINK MAJORITY AND THIS
NUMBER WOULD ONLY INCREASE SO
AND THEY HAVE BEEN INSTRUMENTAL
IN COMBATING EAST MISSION
FORMATION. SO ONE CAN SAY THAT
WITH WITHOUT ETHNIC MEDIA'S THAT
MANY COMMUNITY COLOR WAS STILL
BE STRUGGLING WITH THE COVID
RIGHT NOW. UM SO IT IS
INDISPENSABLE AND THANK YOU.
THANK YOU. THANK YOU. NEXT,
PLEASE. HI I'M GARY JOHNSON WITH
MEDIA ALLIANCE WHILE THE
CALIFORNIA JOURNALISM
PRESERVATION ACT AIMS TO REDRESS
THESE INEQUITIES AND UPLIFT
COMMUNITY BASED MEDIA, WE HAVE
RESERVATIONS ABOUT THE C. J. P S
ABILITY TO ACHIEVE ITS STATED
OBJECTIVES AS CURRENTLY
STRUCTURED, THE C J P BENEFITS
LARGER, ENTRENCHED INCUMBENTS
WHO HAVE GREATER RESOURCES AT
THE EXPENSE OF CALIFORNIA BASED
COMMUNITY CENTRIC MEDIA OUTLETS.
INCENTIVIZES AND THE
PROLIFERATION OF CLICKBAIT
CONTENT AND DISINCENTIVIZE
QUALITY JOURNALISM, AND IT WILL
FURTHER EXACERBATE ALREADY
DWINDLING LOCAL ACCOUNTABILITY
JOURNALISM AND FURTHER ERODE
PUBLIC TRUST IN MEDIA. TWO
ASPECTS OF THIS CJ PH THAT
CREATE THESE PROBLEMS ARE THE
BROAD DEFINITION OF AN ELIGIBLE
DIGITAL JOURNALISM PROVIDER AND
SIPHONING REVENUE FROM LINKS. SO
WE PROPOSE LEGISLATION STRUCTURE
THAT'S MORE TARGETED SOLUTIONS.
SO THAT INCENTIVE INCENTIVES,
AMELIORATE THE ISSUES AND HELP
REINVIGORATE DIVERSE, EQUITABLE
AND MUCH NEEDED INDEPENDENT
COMMUNITY MEDIA OUTLETS. THANK
YOU. THANK YOU VERY MUCH. NEXT
BEFORE YOU GO TO ANOTHER
QUESTION, MR ADAM WHAT PLATFORMS
IS QUALIFIED UNDER THE ACT IN
CANADA SO FAR THUS FAR, META
MADAM GOOGLE AND BEING AND
TIKTOKER ON THE MY COST. OKAY,
SO TWO OF QUALIFIED AND OTHERS
ARE ON THE CUSP. RIGHT THANK
YOU. THANK YOU. GO AHEAD. THANK
YOU, MR. CHAIR JESSICA GONZALES
AND THE CO CEO OF FREE PRESS
ACTION. I'M ALSO A RESIDENT OF
DISTRICT 24 FREE PRESS IS A NON
PROFIT, NON PARTISAN MEDIA
ADVOCACY ORGANIZATION. WE'RE SO
GLAD THAT THIS CONVERSATION IS
HAPPENING AND WANT TO KEEP IT
GOING. WE DO HAVE SOME CONCERNS
ABOUT THE C J. P A. WE HAD A
REPORT THAT WE ISSUED A COUPLE
OF WEEKS AGO CRUMBS FOR
CALIFORNIA, FINDING THAT C. J P
WOULD RESULT IN A WINDFALL FOR
BIG OUT OF STATE BROADCAST TV
FIRMS, HEDGE FUND OWNED MEDIA
OUTLETS AND CORPORATE CHAINS.
SOME OF THE VERY SAME ACTORS WHO
HAVE CONTRIBUTED TO THE NEWS AND
INFORMATION CRISIS WERE IN TODAY
AND WHO HAVE SPREAD HATE AND
LIES TO MILLIONS. SO INDEPENDENT
, LOCAL AND ETHNIC MEDIA WOULD
BE ON THE OUTSIDE LOOKING IN. WE
HAVE SOME SERIOUS CONCERNS ABOUT
THAT. WE LOOK FORWARD TO WORKING
WITH Y'ALL. WE SUBMITTED WRITTEN
TESTIMONY AS WELL. THANK YOU,
ALL RIGHT. HI MY NAME IS ALICIA
RAMIREZ. AND I'M, THE FOUNDER
AND PUBLISHER OF THE RIVERSIDE
RECORD, A NONPROFIT PAYWALL FREE
DIGITAL NEWS OUTLETS SERVING
RIVERSIDE COUNTY. THANK YOU FOR
TAKING UP THIS IMPORTANT ISSUE
AND HEARING OUR COMMENTS. MY
COVERAGE MOST OF THE TIME IS OF
LITTLE INTEREST TO PEOPLE WHO DO
NOT LIVE IN THE COMMUNITIES THAT
I SERVE. FOR EXAMPLE, I DOUBT IF
VERY MANY OF YOU IN THIS ROOM
CARE ABOUT THE CITY OF EAST
MALES FIGHT TO SECURE THEIR OWN
ZIP CODE. BUT FOR THE PEOPLE WHO
THERE WHO DON'T RECEIVE THEIR
MAIL IN A TIMELY MATTER, IT'S A
VITAL IMPORTANCE. AS STATE
LEGISLATORS, YOU HAVE A MANDATE
TO ACT IN THE BEST INTERESTS OF
PEOPLE OF CALIFORNIA AND ANY
POTENTIAL LEGISLATION.
LEGISLATIVE SOLUTION TO THE
LOCAL NEWS CRISIS MUST PUT THE
INFORMATION NEEDS OF YOUR
CONSTITUENTS FIRST. MEANING THAT
SMALL INDEPENDENT PUBLISHERS
LIKE MYSELF MUST HAVE A SEAT AT
THE TABLE DURING THE DRAFTING
PROCESS. THANK YOU SO MUCH FOR
YOUR TIME TODAY. THANK YOU VERY
MUCH. HI I'M CHRIS GENERAL WINE
EDITOR AND PUBLISHER OF TIMES OF
SAN DIEGO. AND FIRST OF ALL,
THANK YOU VERY MUCH FOR HOLDING
THIS HEARING AND NOW CLOSE TO
FOUR HOUR LONG PERIOD OF TIME.
WE ARE AN INDEPENDENT ONLINE
NEWS WEBSITE THAT HAS BEEN
PUBLISHING FOR 10 YEARS. WE ARE
A FREE ACCESS SITE THAT
PUBLISHES AN AVERAGE OF 20
ARTICLES DAILY AND NOW HAS
600,000 READERS AND I'M SPEAKING
FROM THE PERSPECTIVE OF 50 YEARS
IN MEDIA, FIRST THE NEWSPAPERS
AROUND THE COUNTRY AND THEN A
DIGITAL MEDIA STARTUPS IN
CALIFORNIA. TIMES OF SAN DIEGO
IS AN EXAMPLE OF THE NEW VOICES
THAT HAVE APPEARED IN CALIFORNIA
THANKS TO THE GROWING INTERNET
ECOSYSTEM. WITHOUT SEARCH
TRAFFIC FROM GOOGLE LINKS FROM
FACEBOOK AND REAL TIME BIDDING
FOR ONLINE ADVERTISING. WE COULD
NOT PUBLISH MY MESSAGE FOR
TODAY'S HEARING IS THAT IT'S
VITAL TO PROTECT THIS ECOSYSTEM.
AS THE LEGISLATURE CONSIDERS
BILLS LIKE A B 886 AND SIMILAR
MEASURES. I HOPE NOTHING IS DONE
TO STIFLE INNOVATION. THE GROWTH
OF INDEPENDENT NEWS PUBLISHING
IS GOOD FOR READERS GOOD FOR
CALIFORNIA AND ULTIMATELY
IMPERATIVE FOR DEMOCRACY. THANK
YOU FOR THIS FORM. ALL RIGHT.
THANK YOU. DAVID BLOGS WITH THE
ALLIANCE. EVERYTHING THAT WAS
SAID TODAY ABOUT GOOGLE IS
ABSOLUTELY TRUE. GOOGLE JUST
LIKE META, IN MY OPINION IS
TRASH, SO I DON'T USE IT. YOU
DON'T HAVE TO USE IT. I
SUBSCRIBED TO A DOZEN ONLINE
MEDIA ONE. I PAY UP TO $275 A
YEAR FOR WHY DO I PAY THAT MUCH?
BECAUSE IT'S VALUABLE. THEY
DON'T USE GOOGLE. THEY DON'T USE
META. NONE OF THOSE HAVE
SUBSCRIPTION SERVICES. I DO USE
IT, AND THEY ARE THRIVING. NOW L
A TIMES THEY GAVE YOU THEIR
STORY. THEY ARE MEDIA THEIR
LEGACY. THEY HAVE A BRAND NAME.
ANYTIME I SEE SOMETHING FROM THE
L A TIMES ON BIAS BECAUSE OF HOW
MUCH BAD INFORMATION I GOT FROM
THEM IN THE PAST, SO I LOOK AT
THEM WITH THE JOHN DESAI AND TRY
TO AVOID THEM SAN FERNANDO SON
TODAY. THEY TOLD YOU TO BUY A
STORY OF WHAT HAPPENED. THEY SEE
THEMSELVES ARE TRUE. AH I KNOW
THE MAJORITY OF THE PEOPLE THAT
WRAP THE PICKLES EVENT IT WAS
PORTRAYED AS PEOPLE FROM OUTSIDE
THE COMMUNITY. HALF THOSE PEOPLE
LIVE IN SAN FERNANDO. THE REST.
EXCEPT FOR TO LIVE IN L. A
COUNTY L. A COUNTY IS UP. PUBLIC
LIBRARY FOR THE WHOLE COUNTY,
AND THAT'S WHERE IT WAS
HAPPENING. THAT ALL RIGHT. THANK
YOU, SIR. THANK YOU. GOOD
EVENING. KAREN BERG CAN REMEMBER
STAFF. MY NAME IS ROBERT
SINGLETON. I'M THE DIRECTOR OF
POLICY AND PUBLIC AFFAIRS FOR
CHAMBER OF PROGRESS, A CENTER
LEFT TECHNOLOGY TRADE
ASSOCIATIONS THAT BELIEVES IN
INNOVATION OR BELIEVES THAT
INNOVATION CAN HELP US REALIZE
THE PROGRESSIVE VISION FOR THE
FUTURE. UM THERE'S BEEN A
PROLIFERATION OF NEW HYPERLOCAL
AND ISSUE FOCUSED JOURNALISM
INITIATIVES, MANY OF WHICH
WOULDN'T HAVE EXISTED WITH
WITHOUT THE DECENTRALIZED WAY OF
SHARING INFORMATION THAT HAS NOW
BECOME THE NORM. SO IF THE
LANDSCAPE OF JOURNALISM IS
FUNDAMENTALLY CHANGED, AND SO
SHOULD THE MEANS OF FINANCIALLY
SUPPORTING IT. THANKFULLY THERE
ARE DOZENS A LOT OF OPTIONS HERE
HOST OF CASE STUDIES TO LEARN
FROM AND A NUMBER OF WONDERFUL
ORGANIZATIONS AND ADVOCATES
LOOKING TO DO EXACTLY THIS. THE
COALITION REBUILD LOCAL NEWS
PROCESS SERIES OF LOOK OF
OPTIONS FROM FAVORABLE TAX
CREDITS TO INCENTIVES FOR LOCAL
HIRING. OTHERS HAVE PROPOSED
LEGISLATION THAT WOULD
PRIORITIZE GOVERNMENT
ADVERTISING SPENDING FOR SA'S
ANOTHER FORMAL NOTICING TO LOCAL
NEWS GROUPS, AND THERE HAVE BEEN
EFFORTS TO CREATE LARGER
INDUSTRYWIDE FUNDS SUPPORT
JOURNALISM. HOWEVER, WE CAN ALSO
LEARN FROM OUR NEIGHBORS TO
NORTH ABOUT WHAT MAY NOT WORK.
THE CANADIAN NEWS ACT, WHICH
TOOK THE FORM OF THE LINKS TO A
LINK TAX LED TO A LOSS OF NEWS
ACCESS AND SHARING AND LAID THE
GROUNDWORK FOR PLATFORMS AND
NEWS PUBLISHERS TO NEGOTIATE
SEPARATE DEALS WITH EACH OTHER.
THANK YOU. HELLO MY NAME IS
ALEXANDRA LIEL FROM CALIFORNIA
COMMON CAUSE WE HAVE APPRECIATED
THE CONVERSATION TODAY, AS
SEVERAL SPEAKERS HAVE SAID LOCAL
NEWS IS A PUBLIC GOOD THAT IS
ESSENTIAL TO A HEALTHY,
INCLUSIVE AND MULTIRACIAL
DEMOCRACY. IN ORDER FOR A FREE
PRESS TO THRIVE. WE NEED A
NETWORK OF MEDIA POLICY
SOLUTIONS THAT INTERSECT AND
SUPPORT ONE ANOTHER CALIFORNIA
COMMON CAUSE HAS BEEN WORKING AT
THE LOCAL LEVEL TO TEST HOW
LOCAL EXPERIMENTATION AND
INNOVATION IN LOCAL JOURNALISM
POLICY CAN SHAPE STATEWIDE
EFFORTS ARE CURRENT EFFORT IS
EXPLORING HOW AN EQUITABLE
REDISTRIBUTION OF SAN
FRANCISCO'S LISTING CITY
ADVERTISING SPENDING COULD
BENEFIT COMMUNITY SPECIFIC AND
ETHNIC MEDIA. THERE IS A WIDE
WORLD OF POLICY IDEAS THAT ARE
WORTH EXPLORING. SEVERAL OF THEM
HAVE BEEN MENTIONED AT THIS
HEARING. ADDITIONAL IDEAS THAT
COULD APPLY STATEWIDE MAY
INCLUDE REPLANTING, WHICH GETS
TO THE SYSTEMATIC ISSUE OF
CONSOLIDATION WITH THE GOAL OF
KEEPING NEWS OUTLETS INDEPENDENT
AND COMMUNITY BASED AND A NEWS
VOUCHER PROGRAM THAT WOULD
INCLUDE RESIDENTS BEING ISSUED
VOUCHERS TO USE A QUALIFYING
NEWS OUTLETS OF THEIR CHOICE. WE
LOOK FORWARD TO FURTHER
EXPLORING HOW PUBLIC POLICY
SOLUTIONS CAN HELP MAKE OUR
COMMUNITIES HEALTHIER AND
WEREN'T FORMED IN 2024 AND
BEYOND, ESPECIALLY AS WE ENTER A
NEW DIGITAL AGE FILLED WITH
MISINFORMATION AND
DISINFORMATION AND AN IMPORTANT
ELECTION YEAR. THANK YOU. HI
THERE. MY NAME IS MATT TINOCO.
I'M THE FOUNDER AND PUBLISHER OF
LOS ANGELES PUBLIC PRESS. I
THINK HAVING LISTENED TO
EVERYTHING TODAY. THE THING THAT
I WOULD LIKE TO SPEAK TO THE
STATE LEGISLATURE IS TO DO THIS
SLOWLY AND INTENTIONALLY, WHICH
IS OPPOSITE OF MY WORDS FOR
PEOPLE WHO GIVE MONEY TO
JOURNALISM WHERE THE NEED IS
IMMEDIATE, AND FUNDERS NEED TO
BE. CUTTING THE CHECKS
YESTERDAY. FOR THE PUBLIC POLICY
QUESTION GETTING IT RIGHT IN A
FIELD THAT IS SO TECHNICALLY
COMPLICATED. EVERYBODY HERE HAS
DIFFERENT BUSINESS MODELS. EVERY
THINGS ARE CHANGING ALL THE
TIME. IT'S NOT SOMETHING THAT'S
GOING TO BE RESOLVED IN A SINGLE
LEGISLATIVE SESSION, AND THE
BEST THING THAT I CAN THINK TO
SAY IS THAT WHATEVER NEXT YEAR'S
LEGISLATIVE SESSION RESULTS WITH
IS TO BE MINDFUL THAT IT'S A
PROBLEM THAT IS GOING TO TAKE
EVERYBODY IN THIS ROOM WORKING
FOR THE REST OF OUR LIVES TO
RESOLVE. UM THAT'S ALL. THANK
YOU. THERE ARE SOME SUNGLASSES
UP HERE FROM SOMEBODY. SO THANK
YOU. ALL RIGHT. THANK YOU VERY
MUCH. GOOD AFTERNOON CENTERS AND
ESTEEMED PANEL HERE, UM. I HOPE
YOU CONSIDER THE UNINTENDED
CONSEQUENCES OF YOUR NAME IS AND
YOUR ORGANIZATION. I'M NOT WITH
ANY ORGANIZATION. MY NAME IS
NANCY HALL. UM, YES, I HOPE
YOU'LL CONSIDERED UNINTENDED
CONSEQUENCES OF TRYING TO DECIDE
WHAT IS CREDIBLE SOURCES AND
FASTEN. IF YOU CAN'T QUESTION
SCIENCE ISN'T REALLY SCIENCE.
THE TRUTH IS LIKE A LION. HE
DOESN'T NEED TO DEFEND ITSELF.
YOU CAN JUST SET IT FREE. PLEASE
KEEP THAT IN MIND STEP MAKING
THESE PANELS OF EVERYONE'S GONNA
HAVE THE SAME TRUTH AND THAT'S
IT. THERE'S WE NEED TO BE ABLE
TO DISCUSS THESE THINGS. THANK
YOU. THANK YOU VERY MUCH. HI MY
NAME IS JILL HAWKINS. AND I'M
REALLY CONCERNED ABOUT THE
CENSORSHIP AND JUST CONTROLLING
INFORMATION COMING OUT. I MEAN,
WHAT IS CREDIBLE SOURCES? I MEAN
, THEY ARE. WE ONLY ALLOWED TO
WATCH THE CDC OR UM OR FDA. THE
FDA WANTED TO WAIT 75 YEARS TO
RELEASE THE SAFETY DATA ON THE
COLOR VACCINE AND I CAN'T DECIDE
DOT ORG. I CAN'T DECIDE, SUED
THEM AND RELEASE THE TAPE DATA,
AND IT SHOWS THAT THEY KNEW
BEFORE THEY RELEASE THE VACCINE
THAT BECAUSE HARD HACKS, STROKES
AND DEATHS. SO ANYWAY, I'M
REALLY CONCERNED ABOUT OUR MEDIA
BECAUSE I AM HANDED THIS TO SOME
PEOPLE LEAVING THE MEDIA AND
THEY WOULDN'T TAKE IT. AND SO
THE MEDIA ARE YOU AFRAID OF
INFORMATION? YOU KNOW, WE HAVE
TO BE HAVING OPEN DISCUSSION.
THANKS SO MUCH. GIVE YOU A
COPIES TO YOUR SERGEANT ALREADY
GAVE IT TO YOUR. YOU'RE STUBBORN
. THANK YOU. AND IF ANYBODY ELSE
HERE ONCE A COPY, I HAVE A BOX
OF THEM OUTSIDE. SO PLEASE SEE
HIM OUTSIDE. THANK YOU. I THINK
I CAN ADJUST IT SINCE I'M PRETTY
CONFIDENT THE MICROPHONE DOESN'T
HAVE COVID. AND NEITHER DO I. MY
NAME. MY NAME IS ANDREA
HEDSTROM. I REPRESENT MYSELF AND
MY FOUR CHILDREN AND MY
ORGANIZATION CALLED GOAT FARMERS
FOR GOOD GOVERNMENT. AND I'LL
LEAVE YOU WITH SOME FINAL
REFLECTIONS FROM LAYERED V TATUM
408 US 1 1972. THOSE WHO ALREADY
WALK SUBMISSIVELY WILL SAY THERE
IS NO CAUSE FOR ALARM. BUT
SUBMISSIVENESS IS NOT OUR
HERITAGE. THE FIRST AMENDMENT
WAS DESIGNED TO ALLOW REBELLION
TO REMAIN AS OUR HERITAGE. THE
CONSTITUTION WAS DESIGNED TO
KEEP GOVERNMENT OFF THE BACKS OF
PEOPLE. THE BILL OF RIGHTS WAS
ADDED TO KEEP PRECINCTS OF
BELIEF AND EXPRESSION OF THE
PRESS OF POLITICAL AND SOCIAL
ACTIVITIES FREE FROM
SURVEILLANCE. THANK YOU VERY
MUCH, MAN, RIGHT? AND OFFICIAL
EAVESDROPPING HAS EXPIRED. THANK
YOU VERY MUCH, SO WE'RE GOING TO
HAVE TO GO AHEAD.
IT WILL TURN MY MICROPHONE BACK
ON WITH WITH THAT WE'RE GOING TO
CONCLUDE HIM. BUT LET ME LET ME
THANK SOME FOLKS HERE. A LOT OF
WORK HAS GONE INTO THIS. UM
THANK YOU, ALISON MEREDITH, UH,
BACKGROUND PAPER IS EXCELLENT.
YOU SHOULD READ IT. IF YOU
HAVEN'T THANK YOU, CHIEF COUNSEL
MARGIE ESTRADA. THANK YOU. THE
SERGEANT'S THANK YOU TO THE TECH
FOLKS. THANK YOU TO ALL THE
WITNESSES HAVE TRAVELED SO FAR.
TO BE HERE AGAIN. THIS IS A
CONTINUING JOURNEY IN BELL. WE
WILL BE CALLING UPON YOU. THANK
YOU. THIS CONCLUDES THE HEARING.