Daily Mirror publisher Reach says news content changes on Facebook have hit digital turnover

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Daily Mirror owner Reach has warned that changes in how Facebook displays news content on its platform are impacting revenues.

The newspaper group, which also owns the Daily Express, Manchester Evening News and OK! magazine, said turnover contracted by 5.9 per cent year-on-year for the four months ending 23 April.

Print revenue dropped by only 3 per cent during the period, even though advertising sales from this channel plunged by almost a fifth, which Reach credited to price hikes it made the previous year.

Last year, Meta spokesperson Erin Miller claimed that only 3 per cent of Facebook feed posts contained links to news pieces, adding that ‘it doesn’t make sense to over-invest in areas that don’t align with user preferences.’

Johnathan Barrett, an analyst at broker Panmure Gordon, said: ‘Only time will tell as to whether this is just part of the ongoing testing designed to optimise [Facebook’s] performance or if this is perhaps seeking to improve its bargaining position ahead of commercial discussions with publishers.’

Full article here: https://www.thisismoney.co.uk/money/markets/article-12042297/Reach-says-Facebook-news-content-changes-hit-turnover.html

Author: Harry Wise, THis is Money

Johnathan Barrett

Director, Research Analyst, Media & Digital

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