Media Battles Big Tech for Survival

Axios CEO James VandeHei recently expressed his frustration over Elon Musk’s claim that X account holders are now the media. James VandeHei stated that people on X are not the media using colourful words. His comments points to an escalating battle as news outlets grapple with shrinking advertising dollars and dwindling audience engagement, the media is losing ground and revenue to platforms like Google, Facebook and X.

Tech companies are now drawing significant advertising revenue away from traditional news sources. As media organizations struggle to adapt, VandeHei’s outburst reveals a deep desperation to reclaim both audiences and profits lost to digital giants. The battle was worsened by Donald Trump labelling some news outlets as fake news. This battle is not merely a shift in consumer preferences; it’s a fight for the very survival of journalism as we know it.

Elon Musk opened up Twitter now known as X in line with the first ammendment of the Constitution of the United States and this allowed the public to openly question and challenge narratives pushed by the media.

Bob Iger from Disney battled with Elon Musk and Bob lost the battle as Disney has gone back to advertising on the Elon Musk platform.

X is not the only platform that has been under attack from the media. Google has been accused of violating antitrust laws, with a comprehensive lawsuit brought forth by various state attorneys general. Similarly, Facebook is embroiled in its own antitrust lawsuit from state authorities and the Federal Trade Commission. These cases mark a significant escalation in efforts to hold powerful tech corporations accountable for their market dominance, with the implications for the media sector being profound.

The media has lost control over public opinions and they no longer set the narrative which now hurts their bottom line because narrative setting and astroturfing attracts the big bucks.

This summer, efforts to consolidate these cases in the Southern District of New York drew attention, following a similar lawsuit filed by Associated Newspapers, the parent company of The Daily Mail, against Google. The News Media Alliance strategically pushed for the consolidation, seeking a sympathetic ear from a judicial system that understands the plight of the press.

As these lawsuits proceed, the paths courts may take are varied. Some cases could serve as bellwethers, setting legal precedents for future claims, while others might be sent back to the jurisdictions where they originated. For now, the media’s hopes rest on the outcomes of these consolidated cases, with the looming question of whether judicial action can alter the dynamics of advertising and audience engagement.

In response to these legal challenges, Google has defended itself vigorously, stating, “These claims are just wrong. The online advertising space is crowded and competitive. Our ad tech fees are lower than reported industry averages, and publishers keep the vast majority of revenue earned when using our products.” Facebook has chosen to remain silent on the matter.

This ongoing fight between media outlets and tech firms encapsulates a broader narrative about the future of journalism and information dissemination in the digital age. As traditional media seeks to reclaim its footing, the stakes have never been higher. With each passing day, the battle intensifies, raising crucial questions about the viability of the news media and the role of Big Tech in shaping public discourse. The media’s fight against these colossal tech entities is not just a struggle for survival; it’s a battle for the soul of journalism itself.

The media is no longer the sole custodian of public opinion , views and narrative setting or control. This lack of control is threatening the survival of the media.