A sprawling new manifesto by Zuckerberg, published to Facebook on Thursday, should set off new alarm bells for journalists, and heighten news organizations’ sense of urgency about how they—and their industry—can survive in a Facebook-dominated world.
Facebook’s existing threat to journalism is well established. It is, at its core, about the flow of the advertising dollars that news organizations once counted on. In this way, Facebook’s role is a continuation of what began in 1995, when Craigslist was founded. Its founder, Craig Newmark, didn’t actively aim to decimate newspapers, but Craigslist still eviscerated a crucial revenue stream for print when people stopped buying newspaper classifieds ads.
Craigslist was the first signal (and became the prototypical example) of a massive unbundling of news services online that would diminish the power and reach of the news, culturally, and make it more difficult to produce a profitable news product.
Zuckerberg’s memo outlines a plan for the next phase of this unbundling, and it represents an expansion of Facebook’s existing threat to the news industry.
Facebook already has the money. The company is absolutely dominating in the realm of digital advertising. It notched $8.8 billion in revenue last quarter—more than $7 billion of which came from mobile-ad sales. One analyst told The New York Times last year that 85 percent of all online advertising revenue is funneled to either Facebook or Google—leaving a paltry 15 percent for news organizations to fight over.Now, Zuckerberg is making it clear that he wants Facebook to take over many of the actual functions—not just ad dollars—that traditional news organizations once had.