Safeguard the National Media Ecosystem

Digital disruption has created an unbalanced media ecosystem and unfair business competition between global digital platforms and mainstream media.

PHOTO BY DENIS CHARLET / AFP

The logos of mobile apps Facebook and Google displayed on a tablet.

JAKARTA, KOMPAS — The balance of the media ecosystem is a necessity. Media companies must transform in this digital era to survive in an unbalanced ecosystem. However, the state must also be present to regulate the media ecosystem to be healthier and fairer.

Digital disruption has created an unbalanced media ecosystem, unfair business competition, between global digital platforms and mainstream media. The monopoly of content distribution by global digital platforms has created a monopoly in digital advertising. According to MarketingCharts.com in March 2020, Google, Facebook and Amazon controlled 56 percent of ad spending.

As content producers, the mainstream media does not receive adequate economic compensation for the monetization of content distributed by global digital platforms. This is also a form of neglect of copyright on journalistic works. The lack of openness of the global digital platform algorithm system also creates a monopoly on user data by the global digital platforms.

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"There are many (mainstream) media that have closed down because they have not transformed, but more than a few have fallen because it is impossible for the media ecosystem to give support. There must be intervention from the state to make them increasingly grounded,” said a member of the Press Council, Agus Sudibyo, at the National Mass Media Convention in connection to the 2021 National Press Day in Jakarta, Monday (8/2/2021).

There are many (mainstream) media that have closed down because they have not transformed.

Agus said global digital platforms were very monopolitical and this had an impact not only on the vitality of the mainstream media, but also democracy and public space. A number of countries, such as the United States, Germany, and Australia, create regulations to reduce the excessive monopoly of the digital platforms.

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Infographics of Google\'s market share share in online advertising distribution flow. This document was presented at the summons of Google CEO Sundar Pichai before the US Congress on July 29, 2020.

Regulations in these countries require the global digital platforms to pay for content to publishers as content producers. This publisher rights ecosystem is to support journalistic work copyrights, transparency of user data/algorithm systems, and control of monopoly distribution of digital content/advertising.

"In principle, content sharing must generate revenue sharing, data sharing and liability sharing. If the media have thus far had to pay advertising taxes, the global digital platforms have also had to pay advertising taxes. They also have to take responsibility for the hoaxes they spread. So, the global digital platforms are treated as media companies,” said Agus.

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Hary Tanoesoedibjo, the executive chairman of MNC Group, said, in the company to company (B to B) term, MNC Group has made an agreement with Facebook, YouTube, and TikTok over MNC Group content uploaded on social media. "For all the ads that are generated, because this is MNC content, there is a share of the advertising revenue. We earn 55 percent for this advertising revenue share. So at least we have done revenue sharing, while data sharing and liability sharing need to be fought for together through facilitators, in this case the Press Council and associations (media companies)," he said.

KOMPAS/ALIF ICHWAN

Job seekers scan the barcode scanner code for job service links at the job fair held at the MNC Job Fair, Jakarta, Sunday (3/11/2019).

Becoming a model

The Press Council initiated this effort by translating regulations in the United States, Germany, Europe, and Australia. These regulations will be studied and used as a model to implemented in Indonesia.

At the same event, Marrin Hambley, the acting director of the Australian Competition and Commerce Commission (ACCC), shared his experiences in drafting a bill to regulate the media ecosystem in Australia. The process started 3-4 years ago and in December 2020 the Australian Government submitted this bill to the Australian parliament.

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"The draft law is to ensure a fair market. This is the most important draft law that will make big changes, especially in the digital market. Indeed, Google is threatening to go out of Australia, we face it by making other strategies, getting other platforms interested in entering Australia," he said.

The draft law is to ensure a fair market.

Communication and Information Minister Johnny G Plate said that strong regulations are needed to overcome the extraordinary competition in this digital era. "Kominfo (the Communication and Information Ministry) is also making sustainable efforts (of compiling) regulations that support the media ecosystem. It\'s not that easy. Currently, we have Law Number 11 of 2020 concerning Job Creation, including to accelerate the process of digitizing media and broadcasting. Broadcast content will be protected from broadcast retransmissions without rights,” said Johnny.

Kompas Daily Senior Editor Ninuk Mardiana Pambudy assessed that digital disruption was both a challenge and an opportunity for the media. The adaptation of traditional media to digital platforms is a necessity. Therefore, the media need to understand readers\' needs, change the work culture, and invest in information technology resources. Otherwise, media companies can be defeated by the challenges of the times.

This article was translated by Hyginus Hardoyo.