Has Big Tech Become Big Media?

Facebook and Google might have the answers…

At one point in time, there was a distinct differentiation between technology and media. The two were separate entities, with each having its own functionality. In this day and age, however, the line between them is blurred or sometimes not present as such. When you talk about companies like Facebook and Google, you know they are tech companies, but are they really?

For years, the key executives at Facebook have refrained from calling themselves a media company. During his testimony at Capitol Hill, Mark Zuckerberg said, “I consider us to be a technology company because the primary thing that we do is have engineers who write code and build products and services for other people.”

There is a change in the way we consume news

Gone are the times when we used to get all our news or information from the newspaper or television. There is a vast majority of people who get their source of daily information from sites like Facebook, Google, and Twitter. People rely on the Facebook news feed to get their daily updates whereas Twitter is used for breaking news.

The media consumption habit of consumers have changed hence media is not just about the typical setting of journalists gathering information, reporting and writing about it. Since there is a change in this dynamic it is clearly visible that these companies are having a massive influence on the consumers of digital media. In this case are they really responsible for the content that is shared or is it shouldered by the one who shares it? Let’s first talk about what is the distinction between the two.

What exactly is a media company?

Essentially, it is an entity that deals with the mass distribution of content. Big technology companies like Google, for example, try to stay away from this and their reason is that they do not generate content but simply provide a platform for the users to disseminate their own information. Eric Schmidt, the chairman of Google’s parent company Alphabet, explained, “We don’t do our own content, we get you to someone else’s content faster.”

Hence Facebook and Google are making conscious efforts to distinguish themselves as technology companies rather than media companies. You would wonder why there is such a strong emphasis on this characterizaton however the reason behind it is partly accountability and partly profitability.

If Facebook and Google were media companies….

• They would be completely accountable for the content that appears on their platforms
• They would have to invest more in terms of sophisticated algorithms and hiring more humans which means more expenditure which would, in turn, lower their margins and make the companies less valuable
• They would not be immune to liability over content that is posted by others, hence, invite more regulation from lawmakers

Characterization, therefore, is extremely important to help lawmakers determine how to regulate such companies. Sherly Sandberg, COO of Facebook, along with others are of the strong opinion that their companies do not fall under the media category.

When is the right time for these companies to take responsibility?

In my opinion, no matter how much Facebook and Google try to deny their role in the media business it is evident that even if they are not involved in the creation of content they have to take some accountability in terms of distributing content.

In the near future, it is quite possible that there will be a compromise on a certain level where there will be some form of regulation for these social companies that claim to be tech companies solely because of their lack of content creation and use of machines and tools. And even though they are trying really hard to make a differentiation between the two, big tech is merging with big media and no amount of distinction can hide that.

Facebook and Google might have started off as technology companies but there is no doubt in my mind that they are becoming media companies. Only to avoid accountability, they are trying to ward off special regulatory laws that would be placed on them. They have enjoyed the status of ‘Tech’ for way too long and now is the time for someone to shoulder some responsibility so why not them?