How can Malaysia ensure fair ad revenue distribution for local publishers?

Question

Accepted Answer

Malaysia Seeks to Ensure Fair Ad Revenue Distribution for Local Publishers Through Engagement with Tech Giants

The Malaysian Communications and Digital Ministry is planning engagement sessions with major technology companies to explore mechanisms for redistributing a portion of digital advertisement revenues back to local media organisations. This initiative stems from the understanding that substantial advertising income is currently directed towards global tech platforms, and aims to address the financial difficulties encountered by numerous Malaysian publication companies. The ministry intends to develop a formula, similar to measures adopted in other countries, to facilitate this revenue sharing.
Ministry to Engage Tech Giants on Revenue Sharing

The Communications and Digital Ministry has stated its intention to initiate discussions with technology giants regarding the channeling of digital advertisement revenues to local media companies. Deputy Minister Teo Nie Ching informed Parliament that this is a key direction for the ministry, acknowledging that significant advertising revenue is currently being captured by platforms such as Google and other search engines. The goal is to establish a framework that allows for a portion of these revenues to be redirected to Malaysian media outlets.
Addressing Financial Woes of Publication Companies

This move by the ministry is a direct response to the financial pressures faced by several local publication companies. The current digital advertising landscape sees a considerable amount of revenue flowing to international tech firms, impacting the sustainability of traditional media. The proposed engagement sessions aim to find a solution that supports the financial health of Malaysian media organisations.
Emulating International Models for Revenue Distribution

Malaysia is looking to emulate successful models implemented in other countries to ensure a fairer distribution of digital ad revenue. Specifically, the ministry referenced Australia's landmark decision in December 2021, where a law was enacted requiring digital platforms like Meta and Google to compensate local media outlets and publishers for the use of their content in search results and news feeds. This approach provides a precedent for developing a formula applicable within the Malaysian context.
Precedent Set by Malaysian Newspaper Publishers

The initiative builds upon efforts previously undertaken by Malaysian newspaper publishers. In 2020, the Malaysian Newspaper Publishers Association (MNPA) had already begun advocating for international technology companies, including Google and Facebook, to share the advertising revenue they accrue, which has largely been at the expense of traditional media. This past action highlights the long-standing concern within the local publishing industry regarding the imbalance in digital advertising revenue distribution.

Reading history

Hide →

This history is cleared when the page is closed.

How can Malaysia ensure fair ad revenue distribution for local publishers?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends