AUSTRALIA’S biggest social media companies have been the most affected by the $3.9bn social security stimulus, with nearly half the affected businesses reporting losses, according to research by Australian Financial Magazine.
Social media giants Twitter and Facebook are among the biggest losers.
Both companies reported a total of $2.8bn in total losses in Q3-Q12 2017, according the report.
In the US, Twitter reported a loss of $1.8 billion, while Facebook lost $1bn, according a US-based data provider, which reported a $2bn loss in the period.
Facebook had previously reported a profit of $919m, and a net profit of about $7.7bn, in 2017, but had reported a net loss of almost $1 billion in the same period last year.
Twitter was also hit hard by the US Federal Communications Commission’s proposed $15 a month broadband internet subsidy for internet service providers, which is now set to take effect in September.
Twitter and Facebook have both pledged to roll out their own fibre-optic internet services to their users by the end of 2020.
Social Media Is a Wild CardThis was not the first time social media has been hit by the social security subsidy.
Last year, Twitter faced a similar hit when it announced a $1-a-month subsidy for broadband internet service.
“As a company with a global reach and a broad reach, we are also acutely aware of the economic impact that the social subsidy will have on our ability to meet our commitments to our customers,” Twitter said at the time.
We are also committed to delivering the same quality of service as our competitors, as we strive to provide the highest possible quality of services to our users.””
As we begin to roll this out, we need to make sure we are in a position to deliver faster internet service for our customers.”
We are also committed to delivering the same quality of service as our competitors, as we strive to provide the highest possible quality of services to our users.
“Facebook was hit hard last year by the Federal Communications Agency’s proposal to subsidise broadband internet access to all US households.
The Federal Communications Authority said that broadband internet in the US would cost $5 a month in 2020.
The FCC had previously said it would cover the cost of a single $15 per month broadband Internet subscription in 2018, but has not specified the price of the $15 subsidy.