A titanic struggle is taking place between some of the world’s largest corporations.
In one corner is Google and Facebook. In the other is News Corporation. It’s not alone. It stands with most of the established media companies which have watched with growing horror as their advertising revenues have migrated into the coffers of the digital behemoths.
Alphabet, Google’s parent, reported worldwide revenues of US$33bn in the third quarter and is on track to top US$120bn in 2018, mostly from advertising. Facebook’s revenues topped US$40bn in 2017 and have continued to grow during 2018. In just 10 years, the platforms have gone from nothing to hoovering up the majority of advertising dollars in Australia.
In contrast, News Corporation and most media companies have seen their revenues draining way. It began with what used to be known as print media, but are probably now better described as news media sites.