Facebook is set to close its Facebook News tab in the United States and Australia, discontinuing licensing deals with major news publishers in these countries in early April, following a similar move last year in the UK, France, and Germany, as Meta shifts its focus away from news towards short-form videos more aligned with user engagement. Despite debuting in the US in 2019 with multi-million dollar deals with publishers like the Wall Street Journal and the New York Times, Meta reported an over 80% drop in Facebook News usage in the past year, attributing it to users primarily seeking connections with friends and family on the platform. This shift will have financial implications for Australian publishers who signed $70 million annual deals in 2021, ending after regulatory disputes with the Australian government.
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As Meta phases out its news business, Australian publishers face losing a significant revenue stream, and the company is reallocating resources away from news distribution to focus on short-form content and videos, emphasizing the changing landscape where news makes up less than 3% of the average user’s feed. Although users can still view news in their feeds and publishers retain access to their Facebook accounts, Meta clarified it won’t pursue new licensing deals or create additional news products, signaling the end of Facebook’s direct investment in publisher content.
