South African News Media Faces Big Tech Algorithmic Conundrum

The South African National Editors' Forum (Sanef) has raised severe concerns about the sustainability of the local news media sector amidst the growing dominance of large technology firms over content distribution and advertising revenues. At the heart of this struggle is the opacity of algorithms used by tech giants to curate and present news content to users, which significantly impacts the visibility and, therefore, the financial viability of South African news outlets.

During the inaugural session of the Competition Commission’s Media and Digital Platforms Market Inquiry, Sanef chairperson Sbu Ngalwa shed light on the challenges confronting news media organizations in South Africa. According to Ngalwa, the lack of transparency in how news is disseminated through digital platforms has plunged media houses into uncertainty regarding what content will perform well and generate necessary advertising revenue.

"The situation is akin to fumbling in the dark for a lifeline that seems perpetually out of reach," said Ngalwa, emphasizing the predicament of news agencies struggling to stay afloat in a digital environment governed by undisclosed algorithms.

These issues are far from trivial, as digital platforms have become essential for news distribution. However, the mechanisms that prioritize some news content over others on platforms like Google and Facebook remain a closely guarded secret. This ambiguous arrangement has thwarted the ability of news publishers to strategize effectively for maximum visibility and monetization.

The inquiry conducted by the Competition Commission isn't simply a local affair but is part of a broader global conversation on the power dynamics between traditional media and tech companies. Similar concerns have emerged in various countries, prompting actions like the Australian government's News Media Bargaining Code, which mandates negotiations between media and tech firms over payment for news content.

In South Africa, a journey towards a more equitable relationship between media and digital platforms will require a concerted effort to ensure that local news entities are not merely surviving but thriving in the digital landscape. This journey will likely demand regulatory interventions, a call for greater algorithmic transparency, an understanding of the value exchange between news content and platform usage, and perhaps even a re-examination of how digital advertising revenue is shared.

Sanef's participation in the inquiry underscores the crucial role that an independent and financially secure news media plays in a democratic society. As evidenced by various news outlets suffering from job losses and reduced output stemming from revenue contractions, the urgency for a solution to be found cannot be overstated.

Ultimately, the inquiry's outcomes could have far-reaching implications, potentially influencing legislative action and prompting a reshaping of relationships between news media and digital giants. For South African journalism, securing a future where quality, independent reporting is accessible and supported by a fair digital ecosystem is of paramount importance.