Facebook's New Algorithm Impacts Pubs Negatively; Record Labels Are Unhappy With YouTube

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Diminishing Returns

“Facebook was built on the idea of connecting people with their friends and family,” writes Adam Mosseri, the company’s VP of product management for its news feed, in a blog post introducing an algorithm change lowering the reach of publisher stories. Mosseri is breaking some pretty tough news, as many pubs have come to rely on Facebook for traffic and revenue. These media companies once again find themselves out in the cold after a sudden policy shift. You might have noticed Mosseri doesn’t mention brands or media companies as a part of Facebook’s mandate. So what power do pubs have in this situation? Ha. That’s a joke, obviously. The NYT has more.

Oversight

Record labels aren’t happy with YouTube, which has nudged its royalty rates to fractions of a penny per play and allegedly fails to protect copyright infringement, The Wall Street Journal reports. Sony said manual searches on YouTube uncovered 1.5 million illicit recordings, a loss of $7.7 million in ad revenue. YouTube, however, claims its $60 million tech is sound, and that Content ID catches over 99% of illegal content. YouTube can also fairly claim a key role in keeping the industry afloat as retail music dwindles to nothing (amounting now to little more than trendy vinyl sales), and the promotional value of its billions of music video views isn’t neatly encapsulated by ad revenue. More.

The Mighty Amazon

Amazon and Moto G have worked out a deal where Prime members who allow targeted ads on their lock screen can buy the phone at a 25% discount. As Gizmodo notes, $50 off a $200 phone may not be a killer deal when you consider the countless times a user looks at his or her lock screen over the life of the phone. Still though, Prime members have shown a willingness, an eagerness even, to sacrifice data and ads in exchange for savings. And don’t act surprised when the manufacturers involved in the deal (Moto and the less well-known BLU) end up atop Amazon’s coveted electronics best-seller chart. More at Wired.

Snapchat Goes Bigger

Snapchat’s platform APIs are now available to advertisers at a $100,000 minimum, Digiday’s Garett Sloane reports. When Snapchat opened its platform to ads in 2014, spots cost around $750,000. “Snapchat is about to go gangbusters and scale to a billion in revenue so quickly with this API. They are getting rid of high minimums so brands can experiment in ways they haven’t been able to yet,” said one agency executive. More.

The Cheap Seats

The International Olympic Committee is in fits over Snapchat and live social media broadcasting, which threaten to undermine the value of its broadcast rights. NBC paid $7.8 billion for the next decade of Olympic Games, but what happens when athletes and individuals can create their own content to buy against? In 2012, the Olympics went so far as to cover the logos on stadium toilet paper dispensers to keep nonpaying brands from reflected Olympic glory, writes the International Business Times. And it isn’t just social media. Publishers are gearing up to offer non-Olympic advertisers a way to tap Olympic audiences without paying the premiums demanded of NBC sponsors [AdExchanger coverage].

But Wait, There’s More!

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