Publishers and digital platforms

The 31st Economic Forum in Karpacz is not just about discussions on the economy, energy, or international affairs; it is also about changes in the media world. The relationship between publishers and digital platforms was the subject of a debate in the “Rzeczpospolita” Salon, led by Bogusław Chrabota, Editor-in-Chief of the daily. – These are issues that are fundamentally important to the media, to creators, he stressed at the start of the debate.

Right the injustice

One of the most important topics of the meeting was the EU Directive on Copyright in the Digital Single Market and its importance both for creators and publishers.

– The directive is extremely important because it regulates the fundamental injustices that our world, the world of publishers and content creators, has experienced over the years. It provides revenue from related rights, stressed Marek Frąckowiak, president of the Chamber of Press Publishers. – The directive rights an injustice. Publishers and producers of cultural works will begin – after its implementation – getting their due revenues, said Frąckowiak.

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A key issue is who will pay royalties to publishers and creators.

– Large digital platforms, such as YouTube and Google, generate huge financial capital by using content without sharing that capital. We believe that this has to be shared honestly without negating the fact that these are great services and YouTube, for example, helps artists to develop their careers, emphasised Jan Młotkowski of ZAiKS.

Experts stressed the importance of the directive for all creators. – It is about preventing exploitation. It’s about fair sharing, stressed Tomasz Lipiński of ZAiKS.

The role of the directive for press publishers was also an important issue. – Publishers, thanks to this money from related rights, will be able to pay for the creation of better quality content, noted Paweł Nowacki of the Chamber of Press Publishers.

The issue of implementation

Much of the discussion revolved around the implementation of the directive in Poland and the practical consequences of this process for everyone in the market. – Most the EU Member States have already managed to implement the directive, noted Damian Flisak of the Chamber of Press Publishers, and Poland can learn from their experience. And these show that negotiations between publishers and digital platforms are extremely difficult. France implemented the directive in 2019, but the first money is flowing to French publishers only now. The agreement was only finalised after the intervention of the local Office of Competition and Consumer Protection. We should implement an intervention mechanism if there is a deadlock during the talks, Flisak said.

How will the directive work in practice? – In simple terms, YouTube will be required to report how many times a song has been played. It is not about any censorship or tracking users. ZAiKS will engage in a discussion with YouTube to negotiate this mechanism. The broader the representation at the negotiations, the better, said Jan Młotkowski. – Artists should benefit by having higher incomes. Today, one million views on a streaming service translate into one thousand zlotys. This is absurd. This model is built for global artists. If this changes, it will be a gamechanger. This will help local, national cultures to develop and not just defend themselves against global hegemony, stressed Tomasz Lipinski of ZAIKS.

Everyone will benefit

Asked by Boguslaw Chrabota about the consequences of the directive’s entry into force for journalists, the president of the Chamber of Press Publishers Marek Frąckowiak stressed that it will have a double significance.

– First, there will be jobs. The situation for some publishers is difficult. As publishers, we have never had a stake in related rights. That’s one thing. The second, some of this money will go directly to reporters. The directive at the EU level explicitly obliges publishers to transfer part of the funds to authors, journalists, etc. In Poland, the Chamber of Press Publishers has proposed this share to be very generous, i.e. 50%. This division will be implemented by law. Half of the funds will go to the publisher, half to the reporter, Frąckowiak stressed.

The royalties coming from related rights could provide press publishers in Poland with several hundred million zlotys a year, he added. – This money will be allocated in proportion to content exposure. To make it all come together, it is critical that publishers work together in these difficult conversations with platforms, added Frąckowiak.

This was also stressed by Paweł Nowacki. – The beneficiaries of the implementation of this directive will be reporters themselves. They should be interested in improving their financial condition, he said.

The discussion also asked whether the directive would restore the balance between publishers and digital platforms.

– Better late than never. Media and digital platforms are bound to work together. New is coming – like the Metaverse – a new space for consuming content. I would see this right as the first step on the road to coexistence. Providing services, news to the public is the foundation of democracy. This cooperation is indispensable, stressed Damian Flisak.

– Without proper regulation, the big platforms approach everything from a position of strength. And the moment has come when it can no longer function like this, concluded Tomasz Lipiński.