After a series of back-and-forths between the Digital News Publishers Association (DNPA) and the Ministry of Information and Broadcasting, the request for fair revenue sharing still has not concluded.
DNPA is also planning to meet the secretary of MIB, Sanjay Jaju to discuss details and have a clearer idea about how things will go on.
The conflict arises from the evolving dynamics of digital media consumption and the government's regulatory framework. Digital news publishers argue for a fair share of the revenue generated from the dissemination of their content on digital platforms, which is often appropriated by tech giants without adequate compensation to the content creators.
The association had earlier alleged that Google denied publishers a fair share of revenue by parting only a portion of the digital advertising revenue with news websites.
A logical ask?
Alay Razvi, Managing Partner of Accord Juris believes DNPA’s ask for fair revenue share is logical as News Publishers technically are invested in not only creating content but they also have to make sure that they are able to keep the traffic engagement on their respective platforms. It would not be wrong to mention that a similar model has been implemented in other countries. A fair revenue sharing from tech giants will not only encourage them, but it will also recognise their value and contribution.
Countries like Australia and Canada have already introduced an ethics code to compel big tech giants like Google and Meta to negotiate with news media for content payments.
On the other hand, Subhash Bhutoria, Founder and Principal at LAW SB is of the opinion that the ask for fair revenue share may be fair, but is not completely logical and certainly is in contrast with existing laws. If allowed, particularly in respect to news feeds, it will recognise quasi-proprietary rights in news, which is presently not applicable under Indian laws.
“Also, the 2021 IT Rules distinguishes between intermediary and a publisher of news, which distinction would also dilute if such an arrangement of revenue sharing is achieved. The Government will have to have a holistic approach in entertaining any such request,” he said.
The DNPA's request coincides with the upcoming introduction of India's Digital India Bill 2023, which aims to supersede the Information Technology Act of 2000 and tackle modern-day digital issues such as cybercrime, data security, and virtual safety.
How does it impact?
Sujata Gupta, Secretary General at the DNPA shared, “The current scenario of revenue sharing has posed significant challenges for digital news publishers. Many publishers have reported a decline in their share of advertising revenues, which has impacted their financial sustainability.”
She also opines that the imbalance in revenue distribution between large digital platforms and news publishers has made it difficult for publishers to invest in quality journalism and innovation.
According to Razvi, the current scenario of revenue sharing impacted the Digital News Publishers as on one hand they would get reduced revenue towards the work they have invested in creating content and maintaining the traffic engagement and on the other hand, the tech giants would earn more than the DNPA, which can result in imbalance in the market. It would make it more difficult for the smaller publishers to sustain and survive in the present market.
Further solutions
“The DNPA has proposed several solutions, including the establishment of a regulatory framework to ensure fair revenue sharing, mandatory negotiations between digital platforms and news publishers, and the creation of a fund to support independent journalism,” Gupta shared.
While specific timelines are still being discussed, the DNPA is looking forward to an early redressal of the concerns. The association is actively engaging with policymakers to expedite the process and ensure timely implementation.
A consensus can be arrived at where both the parties can benefit when there is a legal framework, said Razvi. One of the many ways would be where both the parties enter into agreements which can ensure fair compensation.
He further suggested, the revenue sharing mechanism can always be worked out between the parties. This will also allow the DNPA to have a better bargaining power. And in the event of any dispute, both the parties can also resolve them through arbitration. Having a balanced legal framework can ensure that DNPA or smaller publishers are not exploited and can maintain a balance between market sustainability and tech giants and further motivate publishers for better content and traffic engagement.
As per Bhutoria, consensus may be difficult as such an arrangement would set a precedence and these intermediaries would be required to enter into similar arrangement with any and all such content publishers, which may cause material deviation from the core business model i.e. of an intermediary. Having said so, these intermediaries may consider revenue sharing in respect to certain offerings such as 'Google Alerts', as it is a filtered content offered to the users.
This issue underscores broader concerns about media monetisation, intellectual property rights, and the role of government regulation in the digital age. The ongoing negotiations and policy deliberations will be crucial in shaping the future of digital journalism in India.
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