Carter said Snap tried to be ahead of legislation, though it is happy to work with governments on policy issues. “We always strive to have the highest level of policy as it relates to safety or privacy or data, or the protection of our community, which in most instances, has meant that we haven’t had to then go and make any changes retrospectively as it relates to particular policy developments.”
This year has been bad for major technology companies, especially those fuelled by advertising such as Snap. Its shares are down about 80 per cent this year to $US10.18 ($15).
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But unlike Meta, the social media company behind Facebook, which is cutting its investment in news as it tries to trim costs, Carter said the company wants to increase its engagement with the media.
Meta and Google signed deals collectively worth tens of millions of dollars with major Australian media outlets in 2021, including Nine, the owner of this masthead. Each deal was different but broadly compensated the media for the use of their content on the major tech firms’ platforms.
That came after a combination of lobbying from the media, pressure from the Australian Competition and Consumer Commission, and legislation but Meta has since given every indication it wants to stop paying when the deal is up for renewal.
In a wide-ranging interview, Carter said Snap planned to boost its investment in local content deals after experiencing a large increase - 55 per cent over the last year - in the number of Australians using a specialised part of its app for short-form video. The section resembles TikTok, the app owned by Chinese company ByteDance that has popularised the format.
Snap has not been forced into major commercial deals for use of news content on its platform because such posts are not a focus of its business. However, it does offer users some news articles and videos from local and international providers.
Locally, the company works with LADbible and Totem Network and runs shows on its ‘Discover’ tab such as Bondi Vet and Masterchef Australia. “The intent is to make sure that we are investing in local content partnerships,” Carter said. “That will certainly be a priority for us in the new year so that Australian Snapchatters are able to experience a good mix of news from both local and global voices.”
“We’re very respectful of the editorial process and want to ensure that the kind of partnership structure which we have developed in other markets is one that fairly compensates our partners for their effort and contribution as well.”
Documents filed to ASIC show Snap Australia grew revenue from $78.3 million in 2020 to $106 million in 2021, while net profit grew from $6.8 million to $18.6 million. The majority of Snap’s local revenue comes from advertising services, such as Snap Ads and sponsored “filters”, which can be overlaid on a picture of a person.
With Nick Bonyhady.
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