A partnership between Google and California legislators has resulted in a $250 million agreement intended to support regional newsrooms, effectively sidestepping a proposed law requiring tech companies to pay for linking to news content. The first-of-its-kind arrangement, spanning five years and involving taxpayer contributions along with Google’s and other potential private funds, designates $70 million for artificial intelligence-driven initiatives.
Administration of the Fund
UC Berkeley’s Graduate School of Journalism will oversee the distribution of funds through the News Transformation Fund. The bulk of the investment, totaling $180 million, is earmarked for news outlets across California, excluding broadcasters. The remaining $70 million focuses on enhancing the workforce with AI capabilities. Implementation of these initiatives is expected to commence in 2025.
Governor Gavin Newsom has praised the agreement, stating it will help support the hiring of numerous journalists and invigorate the state’s press corps. The California News Publishers Association has also expressed approval, viewing this as the beginning of a more extensive effort to sustain local news.
Voices of Criticism
The arrangement has faced opposition from some quarters. State Senate leader Mike McGuire has questioned the adequacy of the funding. The Media Guild of the West has criticized the agreement, pointing to the lack of transparency and minimal financial commitments from Google, suggesting it falls short of addressing the broader issues impacting the journalism sector.
The agreement comes after a prolonged dispute between tech giants and the news industry over support for local journalism amidst dwindling ad revenues and a move towards digital consumption.
The California Journalism Preservation Act (CJPA) was introduced to mandate payments from companies like Google and Meta for news content. Had it passed, estimates indicated these companies could owe US publishers billions of dollars annually. Prior to this agreement, Google had experimented with removing links to local news in response to the proposed bill. The company was also a vocal critic of the act.
Last Updated on November 7, 2024 3:11 pm CET
