Newspapers, Big Tech and the Business Model Question

Newspapers had a platform problem. Matt Britton argues they also had a business-model problem. On CNBC in July 2017, he joins the debate over publishers seeking collective bargaining power against Google and Facebook.

The figures cited in the discussion place the companies at roughly 20% of global advertising spend, leaving 80% elsewhere. Global newspaper circulation revenue was put at about $150 billion annually, compared with roughly $100 billion combined for Google and Facebook at the time.

Matt’s argument is that negotiating power alone could not resolve the shift. U.S. newspaper advertising had fallen sharply, while moving content online and selling banner ads had not produced comparable digital growth. Abundant inventory and precise targeting were changing the economics of display advertising.

He points to BuzzFeed and Vice as examples of companies developing content for the platforms where audiences already spent time. His view is that brands increasingly wanted material people would choose to engage with.

The debate also reaches newsroom costs. Matt questions which functions from the print model should carry forward unchanged, including the role of in-house visual production when material circulates widely through social platforms.

A counterpoint emphasizes the value of trusted reporting amid misinformation. Matt acknowledges credibility and brand identity as assets, while asking how publishers can translate that trust into sustainable revenue.

The segment examines a difficult commercial assignment: defend the value of journalism while rethinking how it is funded, distributed and produced.