In the PRC order approving the rate hikes, it states “the Commission shares The News/Media Alliance’s concerns about Periodicals’ costs and continues to encourage the Postal Service to take steps to address them.”

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FOR IMMEDIATE RELEASE

Arlington, VA – Today the Senate Judiciary Subcommittee on Privacy, Technology, and the Law will hold a hearing at 2:00 p.m. ET, on “Oversight of A.I.: The Future of Journalism,” which will explore the impact of the growth of generative artificial intelligence (GAI) technology on publishers’ ability to provide high-quality journalism and possible oversight mechanisms to help protect and sustain quality journalism.

Witnesses scheduled to testify at the hearing include Danielle Coffey, President & CEO of the News/Media Alliance (written testimony here); Roger Lynch, CEO at Condé Nast (written testimony here); Curtis LeGeyt, President and CEO of the National Association of Broadcasters (written testimony here); and author Jeff Jarvis (written testimony here).

Coffey’s comments before the Subcommittee will explain how Generative AI tools exploit news content to compete directly with publishers, yet need quality journalism to train their systems. Coffey will focus on the copyright infringement implications of how GAI developers train and use their models, as well as the need for legislation, including requiring transparency and responsibility from GAI developers, and passing the Journalism Competition & Preservation Act (JCPA), which would allow publishers to collectively negotiate for fair compensation for use of their content by the dominant tech platforms, such as Meta and Google.

Since generative AI technology took off exponentially last year, the News/Media Alliance has been leading the call for AI companies to seek proper permissions and licensing from publishers for use of their valuable content. Last fall, the Alliance published a White Paper revealing that GAI systems copy massive amounts of publishers’ original works, almost always without authorization or compensation, and publisher content is overweighted in materials used for training these systems. The White Paper and comments the Alliance submitted to the U.S. Copyright Office also explain the legal implications of such use.

In response to the hearing, News/Media Alliance President & CEO, Danielle Coffey stated, “We commend Subcommittee Chair Richard Blumenthal and Ranking Member Josh Hawley and the Senate Judiciary Committee for recognizing the urgent need to address our very serious concerns about the impacts of AI technology on providers of quality journalism, as well as the legal questions this raises. AI companies are scraping our content to compete with it – usually without any compensation to, or permission from the publishers of that content – while they reap all the benefits. This is classic freeriding that infringes publishers’ copyrights and goes far beyond fair use.”

Coffey’s testimony offers multiple suggestions for policymakers, including:

• Recognizing that unauthorized use of publishers’ expressive content for commercial GAI training and development is likely to compete with and harm publisher businesses in a manner that infringes copyright;
• Creating transparency requirements to require the recordkeeping and disclosure of unauthorized training uses of material that is protected by copyright, by technical protection measures, or governed by contractual terms prohibiting scraping; and
• Adopting legislation to remedy existing market imbalances that prevent publishers from engaging in fair negotiations for the use of their content against dominant platforms.

A new report released by the Medill School of Journalism at Northwestern University in November found that the rate of newspaper closures has accelerated, now at 2.5 closures per week (with more than 130 confirmed newspaper closings or mergers in the last year), resulting in the expansion of news deserts, in which communities lack a source of local news.

Coffey concluded, “For years the tech platforms have gotten away with using publishers’ content without appropriate compensation. This problem, having gone unaddressed, has been getting worse and now, AI doubles down on the threat the largest tech platforms pose to publishers’ viability. Countries all over the world are introducing and passing legislation requiring the tech platforms to pay news publishers. The United States cannot fall behind other countries and should pass the JCPA, which will ensure publishers can continue to provide important high-quality journalism we all depend on. We have to act now before it’s too late.”

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Media Contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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FOR IMMEDIATE RELEASE

Arlington, VA – Today the California Senate Judiciary Committee will hold an Informational Hearing on “The Importance of Journalism in the Digital Age.” Senator Tom Umberg is holding the Hearing to give California legislators the opportunity to learn more about the state of journalism in the state, the challenges local newsrooms face and potential solutions, and how the California Journalism Preservation Act (CJPA, AB 886) in particular can help support a vibrant free press.

The CJPA would require Big Tech platforms such as Meta (which owns Facebook and Instagram) and Google to pay news publishers a “journalism usage fee” to use the content of eligible digital journalism providers, as defined in the bill. Currently, creators of journalistic and creative content are not adequately compensated for the use of their work that takes a tremendous investment to produce.

The CJPA was introduced by Assemblymember Buffy Wicks (D-Oakland) in March and passed out of the California State Assembly in June in a floor vote of 46-6 before it was held over to the next session. The Informational Hearing will provide legislators the opportunity to ask questions and provide input before the bill is brought up early in the next session in 2024.

“We applaud Assemblymember Wicks and Senator Umberg for their commitment to sustaining journalism and their dedication to the California Journalism & Preservation Act (CJPA),” said News/Media Alliance President & CEO Danielle Coffey. “By holding this informational hearing and having an open dialogue, they are showing their ardent commitment to preserving quality local journalism that supports a healthy democracy and providing their constituents with important information about their communities. Without meaningful action, news outlets will continue to disappear.”

News outlets, especially small, local ones, are shuttering at alarming rates as revenues decline and costs rise. California has lost more than 100 newspapers in the last decade.

A new report from the Medill School of Journalism at Northwestern University last month raised the level of urgency surrounding the local news crisis, finding that one-third of the newspapers in the U.S. in 2005 will be gone by 2024. Previous reports had estimated the timeline to reach that milestone would occur in 2025, which indicates that the pace of closures has accelerated. Most of the communities that lose their local newspaper do not get a replacement or have a digital source for local news for their community.

When local newspapers shutter, there is a significant detrimental effect on communities whereby civic engagement goes down, corruption goes up, and the ability to combat disinformation grows increasingly difficult.

When newsrooms are full, the public reaps the rewards. The CJPA would also promote the hiring of more journalists, requiring news publishers to invest 70 percent of the profits from the usage fee into journalism jobs.

The News/Media Alliance has been vocally advocating for legislation at the federal level since 2018. The Journalism Competition & Preservation Act (JCPA), which was reintroduced by Antitrust Chairwoman Amy Klobuchar (D-MN) and Senator John N. Kennedy (R-LA) on March 31 (S. 1094), passed through Senate Judiciary Committee markup in June.

The dominant tech platforms have become de facto gatekeepers of journalism, setting rules for how news content is displayed, prioritized, and monetized. They reap the majority of the financial benefits of sharing publishers’ original content without incurring any of the costs of gathering and reporting news their users want and rely on. The CJPA and JCPA directly address these challenges and are a crucial part of the solution to preserving local journalism.

Coffey added, “With similar laws being passed around the world, we are seeing more and more support for getting this legislation passed countrywide. We must act now to protect and support publishers of high-quality journalism, who work tirelessly to keep our communities safe and informed through their reporting. We look forward to the CJPA moving to a Senate vote next year and working with policymakers in California to implement the CJPA and restore fairness and balance to the marketplace.”

For more information on the federal JCPA, visit www.JCPABill.com.

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Media contact:
Lindsey Loving
Director, Communications
lindsey@newsmediaalliance.org

The News/Media Alliance is a nonprofit organization representing more than 2,200 news and magazine media organizations and their multiplatform businesses in the United States and globally. Alliance members include print and digital publishers of original journalism. Headquartered just outside Washington, D.C., the association focuses on ensuring the future of journalism through communication, research, advocacy, and innovation. Information about the News/Media Alliance can be found at www.newsmediaalliance.org.

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The Postal Service requested that the PRC initiate a rulemaking proceeding to consider a change to rural carrier costing on November 21. The proposed revisions update the methodology for the calculation of rural carrier attributable costs to account for the new rural carrier route evaluation system. The proposal reduces unit Periodicals costs by ~1 cent per piece (3 percent). Comments are due January 18 and the Alliance plans to support the decrease in Periodicals costs.

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The Postal Regulatory Commission (PRC) approved the market-dominant price increases proposed by the Postal Service on November 22; however, they also stated they recognize stakeholders’ concerns about a wide variety of issues related to the recent rate changes and the potential effects of the rate-setting regulations the PRC adopted in 2020. The PRC believes further consideration is appropriate and they intend to open a Commission proceeding in the near future. The rate increases take effect January 21, 2024. The Alliance submitted comments on the proposed rate increases on November 6.

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