Accessory This story was delivered to Business Insider Intelligence Digital Media Briefing subscribers earlier this morning. To c
This story was delivered to Business Insider Intelligence Digital Media Briefing subscribers earlier this morning. To check to see if you already have access to Business Insider Intelligence through your company, click here.Last Friday, Facebook began testing a news aggregation section, Facebook News, which will provide a curated selection of articles from about 200 publishers such as The Wall Street Journal, Business Insider, and Bloomberg to a limited audience of US users, per the company’s blog.
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For the first time, Facebook will pay licensing fees to some publishers, with some news partners reportedly receiving more than $10 million annually for their content. Facebook users will now be able to read through a selection of headlines, which will redirect the user to the publisher’s site, where they’ll have free access to the full article, although the remainder of the publisher’s content may remain paywalled.Despite concerns about the role social media plays in delivering news content, a majority of US adults still access news through a social media platform. More than half (54%) say they at least sometimes get news from social media, per Pew Research Center. And Facebook is the most commonly used site for this purpose, with 52% of US adults saying they get news on the site, compared with YouTube (28%), Twitter (17%), Instagram (14%), and LinkedIn (8%).Further, among US Facebook users, 73% say they get news on the site, meaning that likely more than 150 million US users are using the site to access some news. Facebook had 244 million monthly active users (MAU) in the US and Canada as of Q2 2019. However, most US adults remain suspicious of the role that social media companies play in distributing news: 62% say social media companies have too much control over the the mix of news that people see on their sites, per Pew.Following Facebook’s historically fraught relationship with publishers, we think News Tab could be a win-win for both parties. Offering free access to premium journalism will likely provide core Facebook with a way to boost engagement among its existing user base amid growing distrust in Facebook to show them authentic content. Nearly half (47%) of respondents think Facebook is “extremely” likely to show them deceptive content, according to our 2019 Business Insider Intelligence Digital Trust Survey.Respondents to this survey tend to be younger, male, affluent, North American, and identify as early adopters of technology. That means respondents were likely more aware of platform trust issues than the general population and distrust among these respondents could be higher. With Facebook News, the social giant likely hopes it can improve trust in its platform by providing a curated news space and content from established publishers.Publishers, meanwhile, can now access an attractive new, entirely additive revenue stream through content monetization on Facebook. And because each headline featured on Facebook News redirects to its publisher’s website, the tool can help drive substantial traffic to their content.Facebook now has 2.4 billion MAU worldwide, per the company’s Q2 2019 earnings: If even a fraction of them engage with content through Facebook News, it could turn into sizable gains for participating publishers.Want to read more stories like this one? Here’s how to get access: Join thousands of top companies worldwide who trust Business Insider Intelligence for their competitive research needs. >> Inquire About Our Enterprise MembershipsExplore related topics in more depth. >> Visit Our Report StoreCurrent subscribers can log in to read the briefing here.