An effort to get big tech companies to pay broadcasters and news publishers for their use of journalism has taken an unexpected turn in California. As a bill was advancing in the state legislature, a group of lawmakers, Gov. Gavin Newsom, and major tech firms reached a deal to create a new fund that would support local journalism.
Specifics of the deal have yet to be released, including whether broadcasters will be eligible. And the unions representing journalists in the state are calling the deal “opaque” and “vague,” arguing it could “destroy” journalism jobs in the long run.
“Not a single organization representing journalists and news workers agreed to this undemocratic and secretive deal with one of the businesses destroying our industry,” Media Guild of the West said in a statement.
The California Broadcasters Association, which had supported the legislative proposal, declined comment, saying it was still reviewing what the deal entails.
The new five-year incubator program will depend on a mix of public and private funds. State taxpayers would contribute $30 million in the first year, with another $10 million of support in each of the following four years. Google would contribute $15 million in year one, and $10 million in years two through five. The money will be distributed by UC Berkeley’s Graduate School of Journalism, which will create a not-for-profit organization to oversee what’s being called the News Transformation Fund.
Which outlets will qualify hasn’t been released. But the announcement says funding will support California-based state and local news organizations, particularly those serving local news deserts, underserved and underrepresented communities, and outlets that prioritize California coverage.
Newsom said the agreement represents a major breakthrough in ensuring the survival of newsrooms and bolstering local journalism across California. “The deal not only provides funding to support hundreds of new journalists but helps rebuild a robust and dynamic California press corps for years to come, reinforcing the vital role of journalism in our democracy,” Newsom said in a statement. With contributions from private donors, he predicted as much as $250 million could be allocated toward local journalism in the next five years.
Newsom also announced his support for a bill pending in the California Legislature that aims to increase the state’s ongoing commitment to place official marketing, advertising and/or outreach advertising with local and underrepresented media outlets.
Kent Walker, President of Global Affairs for Alphabet, said in a statement that the public-private partnership builds on their history of working with journalism and the local news ecosystem.
Faster Than Legislation
The announcement brings a sudden end to the effort to pass the pending California Journalism Preservation Act (AB 886). Introduced by Assemblymember Buffy Wicks (D-Oakland) in March 2023, it would have required tech companies to pay for the content they redistribute from broadcasters and other news publishers. The money would then be shared with media outlets to pay for journalists and essential support staff. The bill has had the support of the California Broadcasters Association and more than 40 other organizations, including labor groups, consumer protection groups, and publishers.
Wicks says the agreement with tech companies represents a cross-sector commitment to supporting a free and vibrant press, empowering local news outlets up and down the state to continue in their essential work. “I remain committed to finding even more ways to support journalism in our state for years to come,” she said.
It is the first deal to be reached in the U.S. to compensate news publishers on a broad scale for use of their content online by the big tech platforms. The News/Media Alliance had been pushing for the bill to be passed, but it says the arrangement will more quickly ensure news publishers receive fair payment for the use of their content.
“Google is a dominant monopoly that reaps significant revenue off scraping and repackaging quality news content, depriving publishers of the opportunity to monetize their content and reinvest in journalists,” said News/Media Alliance President Danielle Coffey. “Today’s announcement reinforces the need for federal legislation and potential court remedies to address this broken marketplace.”
But action in Washington has slowed. The federal Journalism Competition & Preservation Act (S. 1094) had strong bipartisan support, and it passed out of the Senate Judiciary Committee in June 2023. Since then, the bill has not come to the full Senate for a vote, and there is no companion bill in the House.
