Without Allstate, Marty McFly might never have left 1985 or perhaps he would have traveled back in time in a Buick, forever disrupting the space-time continuum of the seminal movie trilogy.
“The cars exist because of the partnership Allstate had with DeLorean,” said Sandee Lindorfer, vice president of auto claims for Allstate.
In the words of Doc Brown, “Great Scott!”
“Back to the Future” hit movie theaters on July 3, 1985. A customized 1981 DeLorean DMC-12, which took audiences on joyrides to 1955, 1885 and 2015 over the course of three films, was already relegated to the junkyard of automotive history by the time the movie premiered.
In the mid-1970s, Allstate worked with John DeLorean, an automobile executive and engineer, who left GM to launch his own namesake vehicle. The insurance company invested a reported $500,000 in a safety car project, developing prototypes with advanced seatbelt restraints, airbags and improved bumpers.
“We sponsored three prototypes with the DeLorean-Allstate safety car agreement, and we brought one of the prototypes to Congress to show them what could be done around smaller vehicles being more safe and having better fuel economy,” Lindorfer said.
One prototype evolved into the sleek DeLorean DMC-12, which went into limited but ill-timed production at a Northern Ireland factory during a recession in 1981, generating buzz but few sales.
By 1982, the debt-ridden company was in bankruptcy and its founder in legal trouble, facing indictments on separate drug and fraud charges. John DeLorean was ultimately acquitted on both counts, but his car was seemingly no more than a flash in the pan.
Three years later, the DeLorean was reborn as Doc Brown’s time machine, and the rest is cinematic history.
Initially, the time machine was envisioned as a refrigerator-like chamber that Doc Brown carried on the back of his truck. Then director Robert Zemeckis had the inspiration that the time machine should be mobile, and specifically chose the DeLorean for its futuristic design.
“The way I see it, if you’re going to build a time machine into a car, why not do it with some style?” Doc Brown, played by Christopher Lloyd, explains in the movie.
In the annals of “Back to the Future” lore, a lot of similar nuggets have emerged since the film trilogy premiered.
For example, the 1989 second installment predicted the Cubs would finally end their century-long World Series drought with a 2015 win over the fictional Miami Gators. The Cubs actually broke through in 2016, beating the Cleveland Indians, but the movie was pretty close.
Also, the role of Marty McFly was initially given to Eric Stoltz, who participated in over a month of filming before he was replaced by Michael J. Fox, the more comedically gifted “Family Ties” star.
But Allstate’s role in developing the car that begot the time machine and an enduring movie star remained buried in a dusty folder in the back of a corporate cabinet for decades. In 2019, an Allstate archivist found the mysterious DeLorean file and began exploring the mostly forgotten connection.
Six years later, on the 40th anniversary of “Back to the Future,” Allstate is finally ready to take a modest bow.
On Tuesday, Allstate rented a pair of vintage DeLoreans to celebrate the movie, the car and the unlikely part the insurance company played in both. Tucked away in the back of an underground garage at Allstate’s downsized Northbrook/Glenview headquarters near Chicago, across the street from its former sprawling corporate campus, the vehicles were briefly on display for the media and a handful of executives.
The cars, which included a stock 1981 DeLorean and a tricked-out version replicating the “Back to the Future” time machine, were rented from an Orland Park company — DeLorean USA Rental — that leases the vehicles for parties and events.
“You can’t drive it because the insurer doesn’t allow it,” said Tom Sedor, who owns the cars and the rental company.
The time machine, which includes a flux capacitor and a Mr. Fusion nuclear reactor in the back — replete with banana peel as fuel — is fully drivable, and the garage and adjacent parking lot offered enough room to get it up to the 88 mph threshold required to go back to the future.
But Sedor, 57, who customized the movie mockup with a 3D printer and assorted parts from Menards and RockAuto, said the replica has yet to successfully make the time jump.
“Nothing happened, no sparks,” said Sedor. “Everything drove normally. Actually, it’s very, very impressive to drive.”
]]>The Fallen Journalists Memorial Foundation announced Wednesday that Chicago-based John Ronan Architects will design the memorial slated to rise at the National Mall in Washington, the culmination of a nearly yearlong selection process.
The design concept was chosen from more than 50 proposals, besting four finalists with its vision of transparency and light as the core tenets of a free press.
“We were inspired by his unique and compelling design concept, which calls for the use of transparent materials to convey themes of clarity and light to reinforce the importance of the work of journalists, photojournalists and a free press,” David Dreier, chairman of the Fallen Journalists Memorial Foundation, said in a news release.
John Ronan’s award-winning Chicago work includes the modernist Poetry Foundation building, the colorful Gary Comer Youth Center and the Ed Kaplan Family Institute for Innovation and Tech Entrepreneurship at the Illinois Institute of Technology, where Ronan is a professor of architecture.
The memorial will feature layers of transparent elements that will appear different from all three sides of the one-third acre triangular site, which will be located in view of the U.S. Capitol.
Last May, the U.S. Commission of Fine Arts gave final approval for the memorial at the intersection of Independence Avenue and 3rd Street SW, between the National Museum of the American Indian and Voice of America. It was the last step in the site approval process following President Joe Biden’s final authorization of the site location in January 2023.
Funded entirely by private donations, the project is estimated to cost $50 million, with a target completion date of late 2028.
“The design attempts to cast the visitor in the role of investigative journalist,” Ronan said. “So, visitors will navigate through these layered glass elements to reach a place of remembrance at the heart of the site that honors those journalists who have sacrificed their lives in the pursuit of truth.”
Ronan, 60, said he was inspired to convey the importance of a free press amid the shifting landscape of journalism in the digital age. He developed the transparency theme by working with ice cubes, progressing to glass for the more permanent material that will be used in the memorial, which is still in the concept design phase.
The final design will likely be unveiled later this year.
“The jury was really impressed with his incisive understanding of journalism and the way he translated that into three-dimensional form, with his emphasis on transparency, clarity and putting the visitor in the role of an investigative journalist,” said former Chicago Tribune architecture critic Blair Kamin, who served on the 10-member selection committee. “It’s really a brilliant concept and I look forward to when the foundation shares the complete design with the public.”
On June 28, 2018, a lone gunman took the lives of five Capital Gazette employees — Gerald Fischman, Rob Hiaasen, John McNamara, Rebecca Smith and Wendi Winters — inside the Annapolis newsroom in one of the deadliest attacks on journalists in American history. The gunman pleaded guilty and was sentenced to five consecutive life terms in 2021.
The nonprofit foundation was launched on the one-year anniversary of the newsroom shooting by Dreier, a former congressman and then-chairman of Chicago-based Tribune Publishing, which owned the Capital Gazette at the time.
The foundation was authorized by Congress in December 2020 to build a memorial to fallen journalists on federal land in Washington.
The Capital Gazette contributed to this article.
]]>El show anual, que abre el sábado, se ha expandido nuevamente a dos salas en McCormick Place, con una lista completa de marcas, exhibiciones y pistas de prueba, con la esperanza de atraer a grandes multitudes de entusiastas de los autos de la vieja escuela y curiosos de los vehículos eléctricos.
“Somos cautelosamente optimistas de que se sentirá como un salón del automóvil previo a la pandemia”, dijo David Sloan, gerente general del Salón del Automóvil de Chicago. “Volver a crecer en dos salas se siente muy bien”.
El último gran evento de la ciudad antes de que llegara la pandemia en marzo de 2020, el salón del automóvil superó las restricciones de distanciamiento social, los requisitos de uso de máscaras y las oleadas de variantes de COVID-19 sin perder un año. En 2021, pasó a una edición de verano de cinco días, atrayendo a unos 100,000 visitantes. El año pasado, la exhibición de autos regresó en febrero con una huella de un salón, atrayendo alrededor de 200,000.
Las proyecciones de asistencia este año superan los 500,000, acercándose a los niveles previos a la pandemia.
Si bien el salón del automóvil ha vuelto a su tamaño completo, refleja una industria automotriz en constante cambio, con problemas en la cadena de suministro que aún afectan la producción y una transición a los vehículos eléctricos, impulsada por incentivos legislativos, que gana terreno entre los consumidores y los fabricantes.
Afectadas por un inventario limitado, las ventas de automóviles cayeron casi un 9% a 13.7 millones de vehículos el año pasado, según el sitio web de compras de automóviles Edmunds. Las ventas de vehículos eléctricos resistieron la tendencia, casi duplicándose a una participación del 5.1 % de todos los vehículos vendidos.
Las ventas de vehículos eléctricos deberían recibir un nuevo impulso este año gracias a la Ley de Reducción de la Inflación, firmada en agosto por el presidente Joe Biden, que extiende el crédito fiscal federal de $7500 para las compras de vehículos eléctricos, pero agrega límites de precios y otras restricciones. Biden se ha fijado el ambicioso objetivo de que los vehículos eléctricos alcancen el 50 % de las ventas de automóviles para 2030.
El salón del automóvil de este año es todo incluido en vehículos eléctricos, con una pista de prueba ampliada de 100,000 pies cuadrados de Chicago Drives Electric para cinco marcas diferentes. Varios fabricantes también tienen sus propias pistas de prueba EV dedicadas.
“Lo que pasa con los vehículos eléctricos es que la gente necesita experimentarlos”, dijo Sloan. “La primera reacción es que esto realmente puede acelerarse. Y luego el segundo, se siente como un auto normal. Y para tener esa experiencia en el vehículo, el piso de exhibición es muy importante para los fabricantes de automóviles”.
Los nuevos EV en exhibición incluyen una serie de ofertas de fabricantes de automóviles heredados, con puntos de precio y características que pueden hacerlos más accesibles para los clientes que están considerando la transición de gasolina a electricidad.
El punto óptimo puede incluir el primer Chevy Blazer totalmente eléctrico, un SUV compacto que saldrá este verano a partir de $45,000. El Volkswagen ID.4 y el Hyundai Ioniq 5 también se encuentran entre las crecientes filas de pequeños SUV eléctricos que pueden encontrar muchos seguidores, según Jenni Newman, editora en jefe de Cars.com, con sede en Chicago.
“En lugar de fabricar estos vehículos eléctricos que tienen un aspecto extravagante, los fabricantes de automóviles finalmente ofrecen el equivalente de un SUV compacto como un vehículo eléctrico”, dijo Newman. “Estás viendo esta afluencia de vehículos eléctricos en categorías que son importantes para las personas, donde realmente compran automóviles”.
Hacer una prueba de manejo puede ayudar a convertir el EV curioso en clientes, pero el salón del automóvil y los fabricantes también buscan educar a los asistentes, donde las preguntas sobre la infraestructura, la ansiedad por el alcance y los requisitos de carga aún presentan un obstáculo para algunos compradores.
Powering Chicago, una asociación entre la Hermandad Internacional de Trabajadores Eléctricos Local 134 y la Asociación de Contratistas Eléctricos, patrocina la pista de prueba de vehículos eléctricos y proporciona al menos algunas de las respuestas.
“Entendemos que hay un gran incentivo y un gran impulso para asegurarnos de que los vehículos eléctricos se arraiguen en nuestra industria”, dijo Elbert Walters, director ejecutivo de Powering Chicago. “Para que esta tecnología se arraigue, la infraestructura debe instalarse de manera correcta y segura. Y ahí es donde encajamos”.
La mayoría de los propietarios de vehículos eléctricos necesitan instalar un cargador de nivel 2 para el garaje de su casa, que puede recargar completamente un vehículo eléctrico en unas cinco horas. No todos los hogares están cableados para manejar el aumento de carga, lo que hace que la instalación de un cargador doméstico sea potencialmente costosa.
Walters dijo que un garaje ya configurado para un servicio de 200 amperios podría costar tan solo “un par de cientos de dólares” para instalar un cargador de Nivel 2. Las casas con un servicio de 100 amperios “necesitarán hacer una actualización”, pero Walters se negó a ofrecer una estimación de alto nivel para el trabajo.
“Desafortunadamente, no podemos responder esa pregunta, porque cada hogar es diferente”, dijo Walters.
Un fabricante de automóviles EV que notoriamente está ausente es Rivian, que está construyendo su camioneta y SUV eléctricos inaugurales en una planta convertida de Mitsubishi en Normal, al sur del estado. El fabricante de vehículos eléctricos, que está luchando por aumentar la producción para satisfacer la demanda, aún no se ha presentado en el Auto Show de Chicago.
Varios otros fabricantes de automóviles no han regresado desde que golpeó la pandemia, incluidos Mazda, Mitsubishi, Volvo y Audi.
“Nos encantaría tener algunas de las marcas que aún no han regresado”, dijo Mark Bilek, vocero del Auto Show de Chicago. “Y creo que eso sucederá en los próximos dos años a medida que desaparezca esta escasez de inventario”.
NASCAR también tiene una exhibición antes de su primera Chicago Street Race, que convertirá a Grant Park en un circuito callejero temporal durante el fin de semana del 4 de julio.
Para aquellos que no están listos para hacer el cambio a los vehículos eléctricos, todavía hay algunas atracciones con motores de combustión en el salón del automóvil, incluidas las últimas ediciones de los muscle cars a gasolina Dodge Challenger y Dodge Charger.
Escondidos en silencio en la parte trasera del South Hall, el Challenger Black Ghost y el Charger King Daytona de edición limitada cuentan con motores Hemi de 800 caballos de fuerza, trabajos de pintura personalizados y una arrogancia descarada acorde con su debut, y el toque final del modelo en el Auto Show de Chicago.
Solo se construirán 300 de cada modelo, y luego Dodge retirará tanto el Challenger como el Charger, ya que cambia su enfoque y producción a los vehículos eléctricos. El precio de la última de la raza es un poco menos de $ 100,000.
“Es una especie de celebración del final de una era”, dijo Chris Piscitelli, gerente de diseño de Dodge.
Lanzado en 1901, el Salón del Automóvil de Chicago hizo una pausa durante la Segunda Guerra Mundial cuando se redujo la producción de automóviles, pero no ha faltado ni un año desde que se reanudó en 1950. El Salón del Automóvil número 114 se realizará desde este sábado 11 de febrero al lunes 20 de febrero en McCormick Place. Los boletos cuestan $ 15 para adultos.
-Traducción por José Luis Sánchez Pando/TCA
]]>Además de autos de carrera a 200 mph, el evento de dos días también contará con conciertos de larga duración que van desde música country hasta baile electrónico, encabezados por Miranda Lambert, The Chainsmokers y The Black Crowes, anunció NASCAR el miércoles.
NASCAR anticipa que 100,000 asistentes participarán en un festival similar a Lollapalooza diseñado para “reimaginar la experiencia de NASCAR en el corazón del centro de Chicago”, dijo Julie Giese, presidenta de Chicago Street Race, en un comunicado de prensa.
Programado para el 2 de julio, el evento televisado de la Serie de la Copa contará con una pista de carreras de 12 curvas y 2.2 millas de circuito, con los mejores pilotos de NASCAR serpenteando en Grant Park y sus alrededores en calles cerradas bordeadas con cercas temporales, tribunas y suites de hospitalidad. El cantautor de Texas Charley Crockett abrirá para la superestrella del country Lambert antes de la carrera.
Una carrera de la Serie Xfinity, el segundo nivel de competencia de NASCAR, está programada para el 1 de julio. Los rockeros sureños The Black Crowes, más conocidos por su versión de 1990 de “Hard to Handle”, subirán al escenario después de las rondas de clasificación, mientras que The Chainsmokers , un dúo de música electrónica de baile, actuará tras la carrera del primer día.
Los boletos de admisión general de dos días, que incluyen las carreras y los conciertos, comienzan en $269 y salen a la venta el 2 de febrero.
En noviembre, NASCAR comenzó a vender boletos reservados para dos días a partir de $465. Los asientos Premium Club son mucho más altos. En la parte superior de la lista están las suites de hospitalidad temporales ubicadas sobre la calle de pits, donde las entradas para el President’s Paddock Club cuestan más de $3,000 cada una.
NASCAR llegó a un acuerdo de tres años para transformar los alrededores de Grant Park en un circuito de carrera. Según los términos del acuerdo, NASCAR pagará al Distrito de Parques de Chicago una tarifa de permiso de $500,000 este año, $550,000 en 2024 y $605,000 en 2025, con una opción de renovación por dos años. Además, NASCAR pagará al Distrito de Parques una tarifa de $2 por boleto de admisión y una comisión creciente a partir del 15% por alimentos, bebidas y mercancías vendidas en el evento.
El circuito comenzará en Columbus Drive frente a Buckingham Fountain, un área que también servirá como calle de boxes. Desde allí, los conductores irán hacia el sur hasta Balbo Drive y luego corre hacia el este hacia Jean Baptiste Point DuSable Lake Shore Drive. Dirigiéndose hacia el sur a lo largo del lago, los conductores girarán hacia el oeste en Roosevelt Road, y regresarán hacia el norte en Columbus Drive en un ocho aproximado que abarcará una parte de South Michigan Avenue antes de llegar a la línea de salida/meta.
NASCAR tiene acceso completo al área del circuito durante nueve días antes y tres días después del evento. Pero la ventana de preparación total, el proceso de construcción y desmantelamiento de las instalaciones temporales, dura un mes completo, comenzando tres semanas antes del fin de semana de la carrera, según el acuerdo.
-Traducción por José Luis Sánchez Pando/TCA
]]>The 4,408-page text of the National Defense Authorization Act, released Tuesday evening, did not include any reference to the journalism bill.
The Journalism Competition and Preservation Act would temporarily exempt newspapers, broadcasters and other publishers from antitrust laws to collectively negotiate an annual fee from Google and Meta/Facebook, which dominate the nearly $250 billion U.S. digital advertising market.
Introduced in the House and the Senate last year, the proposed legislation made it through the Senate Judiciary Committee in September but is running out of time to pass before the House flips to Republican control in January. Including it in the defense bill was seen as a pathway to approval during the lame-duck Congress session.
But reports of the legislative maneuvering Monday generated significant pushback from Meta, which threatened to “consider removing news from our platform altogether” if the act passed as part of the defense bill. That may have turned the tide against pairing the journalism and defense legislation, sources said Wednesday.
A Meta spokesperson declined to comment Wednesday, as did a spokesperson for Google.
Sen. Amy Klobuchar, D-Minn., lead co-sponsor of the journalism bill, did not directly address the failed effort to add it to the defense bill, but issued a statement Wednesday reiterating the urgency of getting the legislation approved.
“Continually allowing the big tech companies to dominate policy decisions in Washington is no longer a viable option when it comes to news compensation, consumer and privacy rights, or the online marketplace,” Klobuchar said. “We must get this done.”
Proponents of the journalism bill say it will level the playing field with Big Tech and boost struggling news organizations, which have seen revenue and staffing plummet during the new millennium. Meanwhile, critics of the legislation challenge everything from the temporary antitrust exemption to the potential unintended benefit to large media companies.
A coalition of 27 groups, including the American Civil Liberties Union, Common Cause, Public Knowledge and United Church of Christ Ministry, sent a letter to congressional leaders Monday opposing the act and its possible inclusion in the defense legislation.
Re: Create, an organization that advocates fair use on the internet, was a signatory on the letter. It issued a statement Wednesday supporting the decision to exclude the journalism bill from the defense legislation.
“We thank the congressional leaders and senators who successfully kept the Journalism Competition & Preservation Act (JCPA) out of defense legislation,” said Re: Create Executive Director Joshua Lamel. “The JCPA had no place in this bill, and it still has no place in any must-pass legislation.”
Despite the setback, sources said there are still pathways to getting the journalism bill approved before the 117th Congress wraps up business, including potentially adding it to the omnibus spending bill, which Democrats hope to pass by Dec. 16, when current federal funding authorization expires.
Danielle Coffey, executive vice president and general counsel of the News Media Alliance, a Washington, D.C.-based newspaper trade organization that has lobbied in favor of the legislation, said getting the journalism bill passed this year remains a priority.
“We remain grateful to our champions, and will support them to get the JCPA over the finish line this Congress,” Coffey said. “The future of quality journalism and a functional democracy depends on it.”
]]>The Journalism Competition and Preservation Act made it through the Senate Judiciary Committee in September, but is running out of time to pass before the end of the year, when the House will flip to Republican control. Including it in the National Defense Authorization Act, an annual “must-pass” bill, is seen as a strategy for getting it done before the new Congress convenes in January.
The legislative maneuver generated criticism Monday from Meta/Facebook, which issued a statement in opposition to the journalism act and its potential pairing with the defense act. The text of the defense bill had not been released as of Tuesday afternoon, but a source familiar with the matter told the Tribune that lawmakers are considering adding the journalism measure to the legislation.
“If Congress passes an ill-considered journalism bill as part of national security legislation, we will be forced to consider removing news from our platform altogether rather than submit to government-mandated negotiations that unfairly disregard any value we provide to news outlets through increased traffic and subscriptions,” Meta/Facebook said in its statement, which was posted on Twitter.
A Meta/Facebook spokesperson Tuesday declined to explain the mechanism for eliminating local news content, which proliferates in posts across the social media platform.
The News Media Alliance, a Washington, D.C.-based newspaper trade organization that has lobbied in favor of the legislation, criticized Facebook’s statement but declined to comment on any efforts to include the measure in the defense bill.
“Facebook’s threat to take down news is undemocratic and unbecoming,” the News Media Alliance said in a statement Monday. “As the tech platforms compensate news publishers around the world, it demonstrates there is a demand and economic value for news.”
The Journalism Competition and Preservation Act would temporarily exempt newspapers, broadcasters and other publishers from antitrust laws to collectively negotiate an annual fee from Google and Meta/Facebook, which dominate the nearly $250 billion U.S. digital advertising market. Backers say it will boost struggling news organizations and level the playing field with Big Tech, while critics question whether local journalism or large media companies will be the true beneficiaries of the bill.
Introduced in the House and the Senate last year, Sen. Amy Klobuchar, D-Minn., is the lead co-sponsor of the bill, which covers thousands of local and regional newspapers, including the Chicago Tribune and other Tribune Publishing newspapers. The proposed legislation excludes large national publications such as The New York Times, The Washington Post and The Wall Street Journal.
Local TV and radio broadcasters — including network owned and operated stations — that publish original digital news content and meet other eligibility requirements would also be covered by the bill.
A Klobuchar spokesperson did not respond to a request for comment Tuesday. A Google spokesperson declined to comment.
Opposition to the bill has been mounting over everything from the temporary antitrust exemption to undermining fair use on the internet. A coalition of 27 groups, including the American Civil Liberties Union, Common Cause, Public Knowledge and United Church of Christ Ministry, sent a letter to Congressional leaders Monday opposing the act and its possible inclusion in the defense legislation.
“This bill, despite months of advocacy and multiple revisions, contains far too many contradictions, complexities, and problems to be included in any omnibus or must-pass legislation,” the coalition said in the letter.
News publishers have struggled during the new millennium. Newspaper ad revenue, which peaked at $49.4 billion in 2005, fell by more than 80% to $9.6 billion in 2020, according to the Pew Research Center. More than a fourth of the nation’s newspapers have folded since 2005, according to a study by Northwestern University’s Medill School of Journalism.
In August, Gannett, the nation’s largest newspaper chain, laid off 400 employees, or about 3% of its U.S. workforce. Last week, Gannett began another round of layoffs, cutting its news division staff of 3,440 by 6%, or about 200 positions.
McLean, Virginia-based Gannett publishes USA Today and more than 230 other newspapers.
Big Tech is eating up most of the digital advertising pie. Google is projected to generate nearly $70.1 billion and Meta/Facebook $55.5 billion, or more than 50% of the total U.S. digital ad spend this year, according to Insider Intelligence.
Under the bill, the annual fee paid by Big Tech would be distributed to all local publishers that participate in the collective negotiations, with 65% of the allocation based on how much they spend on journalists as a proportion of their overall budget.
As legislators weigh forcing social media giants to pay for aggregating local news content, Facebook, which changed its name to Meta in October to reflect ambitions to expand its social media platform into the virtual reality metaverse, is moving in the opposite direction.
In 2019 Facebook agreed to pay licensing fees to The Wall Street Journal, New York Times, Washington Post and Chicago Tribune, among others, to run their content. But with revenues declining, the company announced in July it would no longer pay news publishers to aggregate curated stories.
On Monday, Meta/Facebook distanced itself even further from its former initiative to support local journalism.
“No company should be forced to pay for content users don’t want to see and that’s not a meaningful source of revenue,” the social media giant said in its statement.
]]>The Journalism Competition and Preservation Act would temporarily exempt newspapers, broadcasters and other publishers from antitrust laws to collectively negotiate an annual fee from Google and Meta/Facebook, which dominate the nearly $250 billion U.S. digital advertising market.
Proponents say it will boost struggling news organizations and level the playing field with Big Tech, while critics question whether local journalism or large media companies will be the true beneficiaries of the bill.
The bill stalled in committee two weeks ago after an amendment introduced by Sen. Ted Cruz to prohibit censorship “collusion” narrowly passed, sharply dividing the bipartisan sponsors of the bill.
At the time, Sen. Amy Klobuchar, D-Minn., lead co-sponsor of the bill, said the bipartisan legislation had been “blown up” by the Cruz amendment, which would provide Big Tech a negotiating out by simply bringing up content moderation. But she worked with Cruz to come up with a revised amendment to keep censorship off the table when media and Big Tech negotiate content fees.
The replacement amendment further clarifies “the bill’s focus is solely on compensation for news organizations when platforms access their content, and that discussions or agreements between news organizations and platforms on content are outside of the scope of the bill,” Klobuchar said.
Introduced in the House and the Senate last year, the bill provides temporary safe harbor from antitrust laws, enabling news outlets to join together to negotiate content fees for aggregated content on Google and Meta/Facebook, the only two platforms targeted by the proposed legislation.
The bill would cover thousands of local and regional newspapers, including the Chicago Tribune and other Tribune Publishing newspapers, which were acquired by hedge fund Alden Global Capital for $633 million in May 2021. It excludes large national publications such as The New York Times, The Washington Post and The Wall Street Journal.
Local TV and radio broadcasters — including network owned and operated stations — that publish original digital news content and meet other eligibility requirements would also be covered by the bill.
“This legislation misunderstands the relationship between Facebook and news, and it ignores our users’ preferences for new types of content,” a Meta spokesperson said in an emailed statement Thursday. “Facebook does not proactively post news on our platform — publishers and broadcasters are the ones who control whether and how their content appears on Facebook, and they can choose to use our free services as long as it provides value and makes business sense for them.”
A Google spokesperson did not respond to a request for comment.
With approval of his amendment, Cruz supported the legislation, which passed through committee by a 15 to 7 vote, and will move to the Senate floor for consideration.
“I think this amendment protects against this antitrust liability being used as a shield for censorship,” said Cruz, R-Texas. “Big Tech hates this bill. That to me is a strong positive for supporting it.”
The local media ecosystem has been in steep decline during the new millennium. Newspaper ad revenue, which peaked at $49.4 billion in 2005, fell by more than 80% to $9.6 billion in 2020, according to the Pew Research Center. A recent study by Northwestern University’s Medill School of Journalism found the country has lost more than a fourth of its newspapers — about 2,500 overall — and 60% of its working journalists since 2005.
Meanwhile, Big Tech has been gobbling up the bulk of the fast-growing digital advertising pie. Google is projected to generate nearly $70.1 billion and Meta/Facebook $55.5 billion, or more than 50% of the total U.S. digital ad spend this year, according to Insider Intelligence.
Under the bill, the annual fee paid by Big Tech would be distributed to all local publishers that participate in the collective negotiations, with 65% of the allocation based on how much they spend on journalists as a proportion of their overall budget.
“Today’s markup and vote was a major step toward getting small and local news publishers the fair compensation they deserve for their content,” David Chavern, president and CEO of the News Media Alliance, a Washington, D.C.-based newspaper trade organization, said in a statement Thursday.
But diverse opposition to the bill, from journalist unions to digital rights groups, has been mounting over everything from the temporary antitrust exemption to undermining copyright law and fair use on the internet. The biggest concern may be whether payments from Big Tech would bolster local journalism or benefit big media companies.
Those concerns were exacerbated last month when Gannett, the nation’s largest newspaper chain, laid off 400 employees, or about 3% of its U.S. workforce, following a larger than expected revenue decline and loss in the second quarter. McLean, Virginia-based Gannett publishes USA Today and more than 230 other newspapers.
Sen. Alex Padilla, D-Calif., voted to move the bill out of committee, but said he could not support it in the Senate without “built-in consequences” to hold accountable companies such as Gannett and Alden, the second-largest newspaper chain, if they don’t invest the Big Tech proceeds in journalists.
“I believe we need stronger language to ensure that the revenue from this bill goes to the workers that make journalism possible and is invested in the high-quality local journalism that those workers produce,” Padilla said.
]]>“I don’t think we can support this bill anymore,” said Sen. Amy Klobuchar, D-Minn., a co-sponsor of the bill. “I think the agreement that we had has been blown up.”
The Journalism Competition and Preservation Act, which would temporarily exempt newspapers, broadcasters and other publishers from antitrust laws to collectively negotiate an annual fee from Google and Meta/Facebook, will be held over for a future committee hearing to determine if it moves to the Senate floor for a vote.
Google and Meta/Facebook, which dominate the nearly $250 billion U.S. digital advertising market, are the only two platforms targeted by the proposed legislation, which seeks to level the online playing field and boost struggling local news media.
A Meta spokesperson declined to comment, while a Google spokesperson did not respond to a request for comment.
The legislation would cover thousands of local and regional newspapers, including the Chicago Tribune and other Tribune Publishing newspapers, which were acquired by hedge fund Alden Global Capital for $633 million in May 2021. It excludes the largest national publications such as The New York Times, The Washington Post and The Wall Street Journal, which have more successfully navigated the digital transition through increased subscription revenue.
The bill also covers local TV and radio broadcasters — including network owned and operated stations — that publish original digital news content and meet other eligibility requirements.
The Judiciary Committee approved several amendments during Thursday’s markup session, including reducing the sunset clause in the bill from 8 years to 6 years and requiring the loser pay attorneys fees in any litigation, before the Cruz amendment brought the session to a halt with concerns that Big Tech and media might collude on “blanket censorship.”
The Cruz amendment said the antitrust exemption “shall not apply” during negotiations if any participant “engages in any discussion of content moderation” policies.
“What this amendment would do is say when the cartels sit down and negotiate, they’d say we’re not going to discuss censorship, we’re going to discuss price,” said Cruz, R-Texas.
Klobuchar said the Cruz amendment would give Google and Meta/Facebook a “get out of jail free card” by providing an opportunity for gamesmanship during the negotiations.
“Since news outlets depend on the antitrust exemption, while the covered platforms do not, the platforms could then raise content moderation at the first opportunity in an attempt to avoid the joint negotiations,” Klobuchar said.
The Cruz amendment was approved by an 11 to 10 vote, with one pass.
The News Media Alliance, a Washington, D.C.-based newspaper trade organization, issued a statement after the hearing encouraging the senators “to resume debate expeditiously, as the JCPA would provide a lifeline to local news.”
A study released in June by Northwestern University’s Medill School of Journalism found newspapers are folding at an average of more than two per week, and that the country has lost more than a fourth of its newspapers — about 2,500 overall — and 60% of its working journalists since 2005. That has created so-called news deserts, where 1 out of 5 people in the U.S. have limited access to local news.
Under the bill, eligible news publishers must have fewer than 1,500 full-time employees. The annual fee would be distributed to all local publishers that participate in the collective negotiations, with 65% of the allocation based on how much they spend on journalists as a proportion of their overall budget.
While the proposal is held over in committee, a group of 21 “digital rights advocates” have lined up against it over everything from the temporary antitrust exemption to undermining copyright law and fair use on the internet. The group’s biggest concern is whether the money paid by Big Tech would bolster local journalism or benefit big media companies.
“There’s no guarantee that any of this money goes toward funding journalism,” said Sara Collins, senior policy expert for Public Knowledge, a D.C.-based advocacy organization focused on internet law and copyright reform. “This seems like a really good way to funnel money to organizations that probably don’t need it.”
Public Knowledge is among the diverse group opposed to the legislation. Other organizations include Common Cause, Consumer Reports, Free Press Action, Re: Create and Wikimedia Foundation.
One common thread among the organizations is that about half are supported financially by Google, according to public records. Public Knowledge, for example, received $50,000+ last year from Google, according to its website.
In a letter to the Judiciary Committee, the group noted that broadcasters such as Sinclair Broadcast Group and iHeartMedia would be among the largest beneficiaries of the proposal. In a statement to the Tribune, the group also singled out newspaper owners Gannett and Alden as beneficiaries “without any safeguards to guarantee that journalist jobs benefit.”
Alden became the second-largest newspaper owner in the U.S. behind Gannett after completing its acquisition of Chicago-based Tribune Publishing. The company immediately implemented buyouts at the Chicago Tribune and other papers.
Last month, Gannett laid off a reported 400 employees, or about 3% of its U.S. workforce, following a larger than expected revenue decline and loss in the second quarter. McLean, Virginia-based Gannett publishes USA Today and more than 230 other newspapers.
Even opponents of the bill acknowledge local news publishers are struggling in the digital age, and need financial support to reverse a long and sharp decline.
Matt Wood, vice president of policy at Free Press Action, a Washington D.C.-based nonprofit organization, signed the letter of opposition to the Journalism Act, but also favors diverting money from Big Tech to local news through an online advertising tax.
Free Press Action, which is not supported by Google, remains skeptical that the proposed bill will benefit journalism amid media consolidation and bottom-line focused ownership.
“If we’re just taking money away from Mark Zuckerberg and giving it to Rupert Murdoch, our group doesn’t see that as a big win,” Wood said.
]]>Su fiel vehículo estaba cerrado y guardado en la tranquila calle residencial que bordea el parque y el puerto Diversey, tal y como lo había dejado la noche anterior.
Entonces giró la llave.
“En cuanto enciendes el motor, suena como un avión a reacción”, dijo Shay, de 79 años.
Shay se dirigió ruidosamente a su taller de reparación de automóviles, la última víctima de una ola de delitos que se ha disparado durante la pandemia: el robo de catalizadores.
El catalizador, que forma parte del sistema de escape de los automóviles que filtra las emisiones, se ha convertido en un objetivo para ladrones con inclinaciones mecánicas en Chicago y en todo Estados Unidos, quienes se deslizarse por debajo de un vehículo, cortan el dispositivo y se van con la mercancía en cuestión de minutos.
El catalizador contiene valiosos metales preciosos como rodio, paladio y platino, que pueden alcanzar cientos de dólares en su reventa en el mercado negro. Pero las facturas de reparación pueden ascender a miles de dólares para los propietarios de los coches y, con las interrupciones de la cadena de suministro, la espera de las piezas de repuesto puede durar meses. La mayoría de las pólizas de seguro no cubren los coches rentados al pasar más de 30 días.
Los conductores sabrán que han sido víctimas de un atraco cuando su sedán, que antes sonaba normal, de repente ruge como un cruce entre una cortadora de césped y un coche de carreras.
El año pasado se produjeron 52,206 robos de catalizadores en todo Estados Unidos, un 1,215 por ciento más que en 2019, de acuerdo con la Oficina Nacional de Crímenes contra Aseguradoras (NICB). La tendencia no ha hecho más que aumentar este año.
California es el epicentro de los robos de convertidores catalíticos, representando el 37 por ciento de los incidentes reportados el año pasado, seguido por Texas, Washington, Carolina del Norte y Minnesota. Illinois ocupó el 11? lugar en robos de catalizadores en 2021, de acuerdo con NICB.
“Este es un problema muy, muy grande en este momento en la ciudad de Chicago”, dijo Juan Pinto, gerente general desde hace mucho tiempo en Milito’s Auto Repair, en Lincoln Park. “Hemos estado instalando muchos convertidores catalíticos. Está fuera de control”.
El taller ve sobre todo modelos de Toyota, Honda y Hyundai que carecen de convertidores catalíticos, siendo el híbrido Prius un objetivo principal, dijo Pinto. Muchos convertidores de equipo original están pendientes de entrega durante meses, por lo que Milito’s los sustituye por piezas del mercado de repuestos siempre que es posible.
“[Tener una pieza del] mercado de repuestos no es lo mismo que [tener] una pieza original”, dijo Pinto. “Pero el cliente no tiene elección, porque ahora mismo los catalizadores originales son superdifíciles de conseguir”.
Un estudio de Carfax publicado en junio reveló que las camionetas Ford de la serie F eran el objetivo número uno de los ladrones de catalizadores, seguidas por el Honda Accord. Otros vehículos que figuran en la lista de los 10 primeros son el Jeep Patriot, el Ford Econoline, el Chevy Silverado, el Chevy Equinox, el Honda CR-V, el Toyota Camry, el Chrysler 200 y el Toyota Prius.
De acuerdo con los expertos, los ladrones atacan a los camiones y los todoterrenos porque están a una mayor distancia del suelo y es más fácil pasar por debajo de ellos. Los híbridos, como el Prius, están en el punto de mira, porque los catalizadores contienen una mayor concentración de metales preciosos, lo que los hace más valiosos para la reventa.
State Farm, con sede en Bloomington, la mayor aseguradora de automóviles de Estados Unidos, ha visto cómo las reclamaciones por robo de catalizadores se han disparado de forma generalizada durante la pandemia.
En 2019, State Farm pagó 4.6 millones de dólares por 2,535 reclamaciones de robo de catalizadores a nivel nacional. El año pasado, State Farm pagó 62.6 millones de dólares por 32,265 siniestros, un aumento de 13 veces en dos años. El ritmo se está acelerando este año, con 50 millones de dólares pagados por 23,570 siniestros hasta los primeros seis meses, de acuerdo con la portavoz de State Farm, Heather Paul.
Illinois ocupó el tercer lugar en la nación en cuanto a reclamos de convertidores catalíticos de State Farm en 2021, con 3.1 millones de dólares pagados por 1,985 robos. En los primeros seis meses de 2022, State Farm ya ha pagado más en Illinois que en todo el año pasado, con 3.5 millones de dólares por 1,912 denuncias de robo de catalizadores.
Para la mayoría de los autos de pasajeros, los costos de reemplazo de los convertidores catalíticos oscilan entre $1,000 y $2,500 para las partes y la mano de obra, dijo Paul.
El plazo para realizar el trabajo también ha crecido durante la pandemia, dijo Paul.
“Al igual que con muchas piezas de automóviles, hay problemas continuos en la cadena de suministro”, dijo Paul. “A medida que aumentan los robos, aumenta la demanda de catalizadores. Por desgracia, esto puede suponer un retraso en la reparación de su vehículo”.
Para colmo de males, un coche rentado puede resultar costoso.
En State Farm, la opción de reembolso del coche rentado no cubriría el largo periodo de espera que algunos talleres citaron para los convertidores de los fabricantes de equipos originales, dijo Paul.
“Los clientes pueden tener que pagar de su bolsillo si hay un retraso en la obtención de piezas para el robo del convertidor catalítico”, dijo Paul.
Los talleres del área de Chicago están experimentando un aumento de las reparaciones por robo de catalizadores y un retraso en la obtención de piezas de recambio.
Ray Khouchaba, director general del concesionario Toyota on Western, en la zona suroeste de Chicago, dijo que su departamento de servicio está viendo llegar aproximadamente un coche al día con un catalizador perdido.
“Se ha duplicado en el último año”, dijo Khouchaba.
De acuerdo con él, la espera para un catalizador original es de unos tres meses y el costo de la sustitución es de unos 3,000 dólares para un Prius.
Okan Sengullu, de 48 años, propietario de Bucaro Brothers Auto Care en Lincoln Park, dijo que el Toyota Prius y el SUV crossover Hyundai Tucson han sido los dos modelos más populares de robo de catalizadores este verano en su taller.
Llegan unos dos o tres vehículos a la semana, pero, como los catalizadores están pendientes de entrega, algunos de esos coches acaban en su estacionamiento durante meses, dijo. El uso de piezas del mercado de repuestos ha ayudado a acelerar el proceso.
Bob Loquercio Auto Group cuenta con más de una docena de puntos de venta en Illinois e Indiana, incluyendo tiendas de Toyota, Honda y Hyundai. Las llamadas de servicio por robo de catalizadores están aumentando en todo el grupo de concesionarios.
“No pasa un día sin que recibamos una llamada por dos o tres catalizadores”, dijo Loquericio, de 66 años.
Los concesionarios Toyota más grandes de su grupo, Elgin Toyota y Chicago Northside Toyota, están vendiendo 10 convertidores cada uno al mes, dijo, pero los pedidos de piezas tienen una duración de hasta seis meses.
Un reciente reemplazo del convertidor catalítico en un Prius 2020 en Northside Toyota costó casi 3,200 dólares, dijo Loquercio.
En 2014, el concesionario Hyundai de Loquercio en Elgin fue golpeado cuando los ladrones quitaron los convertidores catalíticos de cinco coches nuevos en el lote. Desde entonces, Loquercio añadió videovigilancia nocturna en todos sus concesionarios, lo que les ha ayudado a atrapar a más de media docena de ladrones en el último año, dijo.
Los robos de flotas también son un problema creciente. Signature Truck Center, un concesionario de camiones comerciales usados en Crystal Lake, informó que los ladrones se llevaron 28 convertidores catalíticos de los vehículos estacionados en el lote durante el fin de semana.
El concesionario, que ya sufrió un robo hace dos años, calcula que las pérdidas actuales ascienden a entre 75,000 y 85,000 dólares, dependiendo del costo de la sustitución. Ofrece una recompensa de 2,500 dólares por información que conduzca a la detención de los ladrones.
“Esto es algo grande”, dijo Dave Loucks, director general de Signature Truck. “Con los problemas de la cadena de suministro, no puedo abastecer a tantos de ellos. Si tengo que obtenerlos de Ford o Chevy/GMC, el precio casi se cuadruplica”.
Obligados por la Agencia de Protección Medioambiental (EPA) desde 1975, los catalizadores reducen la contaminación atmosférica al descomponer los gases tóxicos que emiten los motores de combustión. Los dispositivos se sitúan bajo el vehículo, entre el motor y el silenciador.
En la última década, los ladrones han puesto en su punto de mira este dispositivo de control de emisiones, ya que el valor creciente de los metales del convertidor rivalizaba con el del oro. Afinaron su arte para quitarlo con tanta rapidez que los coches estacionados podían ser asaltados sin que nadie se diera cuenta.
Pero el aumento de la pandemia está empezando a concientizar a las personas y a hacer que estén más vigilantes.
Este año, 36 estados, incluido Illinois, han introducido leyes para frenar el robo de catalizadores. La ley de Illinois, aprobada en junio, le prohíbe a un vendedor de metales reciclables comprar un catalizador con un valor superior a 100 dólares usando dinero en efectivo.
NICB le recomienda a los conductores que tomen sus propias medidas antirrobo, como estacionar en un garaje o instalar luces de seguridad con sensor de movimiento. También se recomienda hacer que el catalizador sea más difícil de quitar o revender.
En agosto, el Departamento de Policía de Niles organizó un acto en una tienda de neumáticos en el que los conductores hacían fila para pintar sus catalizadores con spray como medida disuasoria para los posibles compradores.
Otra solución que está ganando adeptos es la instalación de dispositivos de bloqueo que hacen que los catalizadores sean menos accesibles para los ladrones que buscan tomar la pieza y huir.
Una empresa de Toledo ha creado un floreciente negocio de posventa con su CatClamp, una jaula de cables que se fija al sistema de escape. El dispositivo cuesta a partir de 181 dólares, superando los 900 dólares en el caso de los camiones pesados, y puede ser instalado por bricoladores o mecánicos.
Kate Brueggemeier, directora general de CatClamp, dijo que el negocio se ha multiplicado por 40 durante la pandemia. La empresa ha vendido 50,000 unidades en los últimos 12 meses. Antes de la pandemia, las ventas anuales se acercaban a las 1,000 unidades, dijo.
“En primer lugar, es un elemento de disuasión visual. Es una cosa más con la que un ladrón tiene que lidiar”, dijo Brueggemeier. “En segundo lugar, en realidad es un elemento disuasorio físico. A muchas herramientas manuales que funcionan con pilas se les acaba la batería antes de atravesar el cable”.
Chicago y Los Ángeles son los dos principales mercados para CatClamp, pero las ventas se han “diversificado” en nuevas regiones en los últimos dos años, a medida que los ladrones de catalizadores amplían su alcance, dijo Brueggemeier.
Ally Reiner, de 30 años, quien vive en el vecindario North Center en Chicago, ha visto cómo su Hyundai Tucson de 2016 ha sido atacado dos veces por los ladrones de catalizadores durante la pandemia. El más reciente fue en mayo, cuando el SUV crossover fue estacionado durante la noche frente a su departamento en la Avenida Montrose.
Como víctima repetida, supo lo que ocurría cuando giró la llave en el contacto a la mañana siguiente.
“En el momento en el que enciendes el coche, suena como si estuvieras en una moto”, dijo. “Es un ruido fuerte, loco, insano, que enseguida te hace notar que algo está mal”.
Reiner, quien trabajaba como profesora en Chicago Bulls College Prep, en Near West Side, llamó a la escuela para decir que no iría ese día y se volvió a acostar.
Estaba descansando para la prueba que le esperaba.
“Sabía que me esperaba un dolor de cabeza de un día tratando de resolverlo”, dijo Reiner.
Reiner llevó su coche a Hyundai de Lincolnwood. No volvería a verlo durante cinco semanas y media, ya que su compañía de seguros, USAA, y el concesionario iban “de un lado a otro” para localizar las piezas de repuesto que debían usarse, dijo. USAA le ofreció un coche rentado, pero en su lugar optó por hacer autostop con compañeros de trabajo y rentar una bicicleta Divvy para las últimas semanas de clase.
La factura de la reparación ascendió a 1,700 dólares —Reiner pagó 500 dólares de su bolsillo después del seguro—, pero cuando el taller le ofreció añadir un bloqueo del catalizador por 500 dólares, se negó.
Reiner también estudió la posibilidad de un garaje, pero no pudo pagar la renta de 100 dólares al mes. En su lugar, estaciona el coche lo más cerca posible de la ventana de su habitación, vigilando la calle.
“Siento mucha ansiedad”, dijo. “También una especie de sensación extraña de estar tan cerca del coche y saber que puede aparecer un ladrón en la noche. Es realmente estresante”.
Shay también fue víctima del robo de catalizadores en dos ocasiones, cuando su coche anterior fue golpeado hace 10 años en un estacionamiento de Target en Chicago.
Asesor de gestión de patrimonios que reparte su tiempo entre Chicago y Wisconsin, Shay dijo que no veía la utilidad de rentar estacionamiento cubierto durante todo el año en su rascacielos de Lakeview Ave., pero se lo está replanteando.
“Tendremos que estudiarlo”, dijo Shay. “Pero esto podría ocurrir a las tres de la tarde cuando estás en Walgreens”.
]]>The Journalism Competition and Preservation Act seeks to level the playing field by allowing local newspapers, broadcasters and other online publishers to negotiate collectively for an annual content fee from Google and Meta/Facebook, which dominate the digital advertising market.
The full text of the Senate bill, released Monday, cites a power imbalance that has benefited Big Tech at the expense of the shrinking newspaper industry, which has lost thousands of publications and tens of thousands of journalists during the new millennium, creating local “news deserts” across the U.S.
The proposed legislation would both recapture digital revenue and incentivize local news publishers to hire more journalists.
“There is a ton of revenue that the platforms receive from our content that is not paid back to news publishers,” said Danielle Coffey, executive vice president and general counsel of the News Media Alliance, a Washington, D.C.-based newspaper trade organization. “Once we move forward, we’ll be able to compel payment from the platforms, which would be transformative for our entire industry.”
A Meta spokesperson declined to comment, while a Google spokesperson did not respond to a request for comment on the proposed legislation.
The bipartisan legislation would cover thousands of local and regional newspapers, including the Chicago Tribune and other Tribune Publishing newspapers, which were acquired by hedge fund Alden Global Capital for $633 million in May 2021. It excludes national publications such as The New York Times, The Washington Post and The Wall Street Journal, which have more successfully navigated the digital transition through increased subscription revenue.
The bill also includes local TV and radio broadcasters that publish original digital news content and meet other eligibility requirements.
Introduced in the House and the Senate last year, the Journalism Competition and Preservation Act provides temporary safe harbor from antitrust laws, enabling news outlets to join together to seek payments from the largest online platforms that aggregate or distribute local publisher content.
“Our bipartisan legislation ensures media outlets will be able to engage in good faith negotiations to receive fair compensation from the Big Tech companies that profit from their news content, allowing journalists to continue their critical work of keeping communities informed,” Sen. Amy Klobuchar, D-Minn., one of the bill’s lead co-sponsors, said in a news release.
Online platforms must have at least 50 million U.S.-based users and net annual sales or market capitalization greater than $550 billion to be included in the bill. The current threshold would include only Google and Meta/Facebook, which account for about half of the nearly $250 billion U.S. digital advertising market, according to Insider Intelligence.
Eligible news publishers must update their content at least weekly, have fewer than 1,500 full-time employees and devote at least 25% of their content to matters of current public interest. For-profit publications must generate at least $100,000 in annual revenue from editorial content, while nonprofits do not have to meet that criteria.
The bill includes a nondiscrimination provision designed to preserve diverse points of view, meaning publications such as Breitbart or Newsmax cannot be excluded based on their conservative viewpoints, according to News Media Alliance.
The annual fee would be distributed to all local publishers that participate in the collective negotiations, with 65% of the allocation based on how much they spend on journalists as a proportion of their overall budget.
“It doesn’t just reward you for the journalists you have, it also incentivizes newspapers to hire journalists,” Coffey said.
The legislation also allows news publishers to demand baseball-style arbitration — an all-or-nothing process that chooses one side’s offer to settle disputes — as a negotiation backstop if a broader agreement is not reached.
As legislators weigh forcing social media giants to pay for aggregating local news content, Facebook, which changed its name to Meta in October to reflect ambitions to expand its social media platform into the virtual reality metaverse, is moving in the opposite direction.
In 2019, Facebook agreed to pay licensing fees to The Wall Street Journal, New York Times, Washington Post and the Chicago Tribune, among others, to run their content. But after posting its first year-over-year revenue decline in the second quarter amid weak advertising demand, the company announced last month it would no longer pay news publishers to aggregate curated stories.
“A lot has changed since we signed deals three years ago to test bringing additional news links to Facebook News in the U.S.,” a Meta spokesperson said. “Most people do not come to Facebook for news, and as a business it doesn’t make sense to overinvest in areas that don’t align with user preferences.”
While Google and Facebook expand the online audience for local publishers, two-thirds of news viewers on the social media platforms “stay within the walled garden” and never click through to the actual source of the stories, leaving newspapers scrounging for digital advertising crumbs, Coffey said.
Newspaper ad revenue has fallen by more than 80% since peaking at $49.4 billion in 2005, dropping to $9.6 billion in 2020, according to the most recent data from the Pew Research Center. Modest subscription revenue gains have not offset the ongoing advertising declines as the industry transitions from print to digital platforms.
Digital advertising accounted for 39% of newspaper advertising revenue in 2020, up from 17% in 2011, according to Pew, but newspapers are still getting a fraction of the overall digital ad market.
U.S. digital ad spending has grown from $23.6 billion in 2008 to a projected $248.8 billion this year, according to data from Insider Intelligence. Digital ad spending represents nearly 72% of total advertising in the U.S., surpassing TV, radio, newspaper and other traditional media combined.
Google is projected to generate nearly $70.1 billion and Meta/Facebook $55.5 billion, or more than 50% of the total U.S. digital ad spend, according to Insider Intelligence.
“The reason that digital has grown so gargantuan is because it has happened at the expense largely of traditional formats,” said Max Willens, a senior analyst with Insider Intelligence. “Print continues to slide and slide and slide. The declines stopped being in the double digits year over year, but that’s because there’s just so little left.”
As ad revenue continues to decline, newspapers have been downsizing and disappearing, creating a void in local coverage.
A study released in June by Northwestern University’s Medill School of Journalism found newspapers are folding at an average of more than two per week, and that the country has lost more than a fourth of its newspapers — about 2,500 overall — since 2005. That has created so-called news deserts, where 1 out of 5 people in the U.S. have limited access to local news.
The study cited the “vise-like grip on digital advertising by Big Tech” as a significant factor in the ongoing decline of the local news ecosystem, which consists of 150 large metro or regional daily newspapers and 6,227 small community dailies or weeklies.
Local news publishers “lack the market power” to negotiate with Big Tech for ad dollars, “leaving newsrooms with fewer resources to do their critical work,” co-sponsor Sen. Dick Durbin, D-Ill., said in the news release.
The consolidation of newspapers has accelerated the shuttering of underperforming publications, while many surviving newspapers have cut staff and circulation amid declining ad revenue, according to the Medill study.
Local newspapers employ about 31,000 journalists across the U.S., down 60% from 2005, according to the study.
Last week, Gannett, the nation’s largest newspaper chain, began laying off an undisclosed number of employees after reporting a larger than expected 6.9% revenue decline and a $53.7 million loss in the second quarter. McLean, Virginia-based Gannett publishes USA Today and more than 230 other newspapers.
“We’ve been transparent about the need to evolve our operations and cost structure in line with our growth strategy while also needing to take swift action given the challenging economic environment,” Gannett spokeswoman Lark-Marie Anton said in a statement.
Anton did not disclose the scope of the layoffs and declined further comment.
In 2016, Gannett made a series of unsolicited bids to buy Tribune Publishing, then known as Tronc, before pulling its final offer.
A New York-based hedge fund with a reputation as one of the industry’s most aggressive cost-cutters, Alden became the second-largest newspaper owner in the U.S. behind Gannett after completing its acquisition of Chicago-based Tribune Publishing in May 2021. The hedge fund immediately saddled the formerly debt-free Tribune Publishing with two loans totaling $278 million and implemented newsroom buyouts at the Chicago Tribune and other papers.
Tribune Publishing’s portfolio includes The Baltimore Sun; the Hartford Courant; the Orlando (Florida) Sentinel; the South Florida Sun Sentinel; the New York Daily News; the Capital Gazette in Annapolis, Maryland; The Morning Call in Allentown, Pennsylvania; the Daily Press in Newport News, Virginia; and The Virginian-Pilot in Norfolk, Virginia.
Alden also owns MediaNews Group, whose newspapers include the Denver Post, San Jose (California) Mercury News and the St. Paul (Minnesota) Pioneer Press.
The proposed U.S. journalism act follows groundbreaking legislation in Australia, which passed the News Media Bargaining Code last year to address the “power imbalance” and ensure news media businesses are “fairly remunerated” for the content they create.
The Australian law generated $200 million in payments from Facebook and Google to local news organizations in its first year, according to research conducted by Bill Grueskin, a professor at Columbia University’s Graduate School of Journalism in New York.
Without similar government intervention in the U.S., the balance of power will remain squarely with Big Tech, Coffey said.
Formerly known as the Newspaper Association of America, the News Media Alliance launched an ad campaign last month in local and regional newspapers across the U.S. with the message “Don’t Let Big Tech Cancel Local News,” seeking to build grassroots support for the bill.
“The moment is urgent,” said co-sponsor Rep. David Cicilline, D-R.I. “At a time when journalism is more important than ever, the press is facing an extinction-level event. Congress must act.”
The bill’s other co-sponsors are Sen. John Kennedy, R-La., and Reps. Ken Buck, R-Colo., and Jerrold Nadler, D-N.Y.
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