Facebook’s parent company, Meta Platforms Inc (NASDAQ:FB) said it no longer plans to pay for content in its new tabs, as it leans further into creator content moving forward.
According to The Verge, which cites a report by Axios, Meta spent over US$100mln in a three-year content deals for news with the Wall Street Journal, the New York Times and CNN.
However, increased regulation that forced social media platforms to pay for news caused the company to lose its enthusiasm.
A statement from an unspecified Facebook spokesperson given to Axios said “a lot has changed since we signed deals three years ago to test bringing additional news links to Facebook News in the US.
“Most people do not come to Facebook for news, and as a business it doesn’t make sense to over-invest in areas that don’t align with user preference.”