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    The Unbearable Ease of Misinformation
    The Unbearable Ease of Misinformation
    The Unbearable Ease of Misinformation
    Ebook264 pages1 hour

    The Unbearable Ease of Misinformation

    By Semir Dzebo, Dumitrita Holdis, Jozef Michal Mintal and Judit Szakacs

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    About this ebook

    Misinformation is a lucrative business in several Eastern European countries, reliant on advertising revenue, and pulling in cash from a variety of other sources including government subsidies, crowdfunding, tax designations, donations and sales of merchandise.

    The Business of Misinformation project, run by the Center for Media, Data and Society, set out in its first phase to map the misinformation business in six countries: Bosnia & Herzegovina, Hungary, Moldova, Romania, Serbia, and Slovakia. The goal was to identify the individuals and businesses that own local misinformation websites and their links to institutions, parties and other individuals.

    In this e-book, you can read detailed descriptions about the misinformation landscape in all the six countries.

    LanguageEnglish
    PublisherCenter for Media, Data and Society
    Release dateNov 3, 2020
    ISBN9786156107039
    The Unbearable Ease of Misinformation

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      Book preview

      The Unbearable Ease of Misinformation - Semir Dzebo

      Table of contents

      Table of contents

      The Business of Misinformation in Eastern Europe: Overview

      Introduction

      Who Funds Misinformation?

      Networks and Connections

      Takeaways: The Good, the Bad and the Ugly

      Methodology Challenges

      Bosnia & Herzegovina: Lying for Profit

      Main Findings

      Introduction

      Misinformation Websites: Four Categories

      Methodology

      Hungary: Pushing Politics, Picking Pockets

      Main Findings

      Introduction

      Misinformation Websites in Hungary: An Overview

      Networks of Misinformation Websites

      The Key Link: Facebook

      Misinformation Websites and Mainstream Media

      Methodology

      The List of Misinformation Websites Studies

      Moldova: No Country for Small Liars

      Main Findings

      Introduction

      Misinformation Sites in Moldova

      Where Is Misinformation in Moldova?

      Romania: Monetizing Dacians and the Apocalypse

      Main Findings

      Introduction

      Methodology

      Typologies

      Other Observations

      Serbia:  Misinformation Inc.

      Main Findings

      Introduction

      Methodology

      Misinformation Websites: Trends in Funding and Ownership

      Slovakia: Snake Oil Spills onto the Web

      Main Findings

      Introduction

      Lack of Accountability

      Most Popular Websites

      Who Pulls the Strings?

      Who Funds Misinformation?

      Methodology

      METHODOLOGY

      Definition

      Main Sources of Information

      Criteria

      Mapping Ownership

      Mapping Funding

      Towards a New Methodology to Track Misinformation Players

      Definition

      Considerations About Mapping Ownership

      Considerations About Financial Information

      Mapping Connections

      ABOUT THE AUTHORS

      About the Project

      About CMDS

      Bibliography

      Notes

      The Business of Misinformation in Eastern Europe: Overview

      Judit Szakács

      Introduction

      The Business of Misinformation project of the Center for Media, Data and Society (CMDS) set out to map the misinformation business in six Central and Eastern European countries: Bosnia & Herzegovina, Hungary, Moldova, Romania, Serbia, and Slovakia. The goal was to identify the individuals and businesses that own non-mainstream, local misinformation websites and their links to institutions, parties and other individuals. The reports offer an overview and typology of the most prominent misinformation websites in these countries. The authors of the country reports faced significant difficulties in identifying website owners, and even more so in gaining insights into the finances of the businesses running these websites. 

      All six reports find that misinformation is prevalent, yet the channels used for distribution of such content are somewhat different. The misinformation landscape in Serbia, for example, is dominated by mainstream media outlets. Small misinformation websites simply cannot compete with misinformation giants like the tabloid newspaper Blic. In Bosnia & Herzegovina, mainstream media are also the main sources of misinformation. Among the alternative sources of misinformation, the most common are anonymous, for-profit websites offering no true journalistic value. The mainstream media in Hungary are also known as propaganda and misinformation channels. In addition to them, however, the Hungarian report uncovered large independent networks of misinformation websites. In Slovakia, misinformation websites are run by multiple independent entities whereas In Moldova, misinformation is spread through mainstream media and, distinctively, through Russian misinformation websites. 

      Of all six countries, Moldova stands out as a multilingual environment where foreign misinformation websites are competing with local players. The Moldovan media serves a population of roughly three million people most of whom speak both Romanian and Russian. Because of the small size of the market and the powerful competition from abroad, local misinformation websites in Moldova are hardly profitable. A similar situation is found in Serbia, but there, however, it is local competition that arguably undermines the financial viability of small independent misinformation websites. In Hungary, journalists also claim that the mainstream media entered the misinformation trade, putting many of the independent misinformation websites out of business.

      Who Funds Misinformation? 

      Except for the Moldovan report, all country studies created a typology of the local misinformation sites. The Slovak report groups the websites according to their thematic focus (the category of blogs though seems to be different from the rest: health and lifestyle; ideology; news-focused; Christianity-related; and paranormal), whereas the Romanian and Hungarian reports differentiate them according to their purported or putative goal: money spinners vs true believers, as the Romanian report put it.

      The Hungarian report also includes a middle-of-the-road category between the two extremes, namely websites that seem to serve an ideological goal, but that also aim to make money. The Bosnian and Serbian reports approach the issue from a different perspective, introducing in the discussion the concept of real journalism, which one would expect to correspond to mainstream media. These two reports also introduce a thematic distinction between general misinformation websites and political propaganda sites. Yet, it appears that the category of For-profit misinformation websites without real journalism in the reports would correspond to the money spinners group from other reports.

      Advertising appears to be one of the primary sources of revenue for most misinformation websites. Without online advertising these media outlets would not be able to survive for one day in Romania. Except for Serbia, misinformation websites heavily rely on Google’s advertising sales platform. The Serbian report, because of its focus on the propagandistic mainstream media channels, finds that websites tend to sell ads directly; there are such examples also in Slovakia and Hungary; yet, across the board, Google appears to be the dominant ad intermediary. 

      Price of ads on misinformation websites, 2019

      Note: The figures refer to banner ad prices 

      Source: CMDS 

      Advertising is such a major source of cash for misinformation channels that in Romania and Hungary, some of these websites are difficult to navigate due to the overabundance of ads. In Hungary, in many cases, the content is created only as a vehicle to display ads. In Slovakia, 27 of the 49 analyzed websites display ads. Yet, following lobbying by Konspiratori.sk, an NGO that brings together the country’s main publishers, advertisers were dissuaded from spending money on misinformation websites, which led to a decline in the ad revenue of these websites: Advertisers have reportedly scrapped over 17,000 ad campaigns that were planned for misinformation websites. In Bosnia & Herzegovina, the lack of access to Google-contracted advertising revenue is the reason why misinformation websites appear and disappear at a fast rate. 

      Misinformation websites in Slovakia more typically use other forms of fundraising, including e-commerce, crowdfunding and tax designations. A total of 10 out of the 49 analyzed websites in Slovakia raised funding from tax designations (part of the income tax that citizens can use to fund NGOs, according to local legislation allowing such designations as a way to support civil society organizations); 16 of them sell goods and services; and 15 finance themselves at least partly through crowdfunding. Several cases of false news websites doing crowdfunding and one website asking for tax designations were also identified in Romania. In one case, a misinformation website in Romania serves as a mouthpiece for its owner’s other business, a shop in Bucharest. There are also in Hungary cases of misinformation websites trying to raise funds, not successfully though, through crowdfunding and sales of goods and services. 

      In Serbia, a main source of income for some of the misinformation websites, particularly mainstream media companies, is the state budget. Informer.rs and Srpski Telegraf were awarded a combined RSD 52.5m (€450,000) of public money for media projects of public importance. Another major media player in Serbia, Pink Media Group, owner of Pink.rs, received a total of RSD 1.28bn (€11m) in loans from the State Agency for Ensuring and Financing Export (AOFI).

      The report on Bosnia & Herzegovina notes that Simurg Media, the parent company of two misinformation-laden publications, Faktor.ba and Stav.ba was granted around BAM 30,000 (approx. €15,000) from the state budget for various projects. The report discusses this as evidence of the company’s close ties to government politicians.

      State funding is a key source of cash for media outlets in other countries, too, particularly Hungary, but only the reports on Serbia and Bosnia & Herzegovina included mainstream media outlets in their sample. (See more in the Towards a New Methodology to Track Misinformation Players chapter)

      In Slovakia, where financial data of misinformation websites are most easily found, revenues from tax designation pulled in by 10 of the most prominent misinformation platforms averaged €36,437 a year in the period 2016-2018. The most popular false news site, Zemavek.sk earned from tax designations an average of €12,717 a year. Zemavek.sk generated total revenue of €430,871 in the latest fiscal year, followed by Extraplus.sk’s €133,196 and Nemesis.sk’s €9,453. Zemavek.sk also relied, albeit to a lesser extent, on crowdfunding, which generated €6,562 for the website in the last fiscal year for which data are available. The most successful website to generate revenue this way, Slobodnyvysielac.sk, had sales of nearly €100,000 in 2018. 

      The annual ad revenue generated by Czech and Slovak misinformation websites combined was estimated at €930,000-€1.27m before the Konspiratori.sk launched the campaign to discourage advertisers from spending on such websites. All in all, the company that runs Zemavek.sk is the most profitable misinformation website in Slovakia. It was followed by the owner of Hlavnespravy.sk, which earned €153,965, and Extraplus.sk with €133,196 in the latest year for which data are available. 

      In Moldova, the owner of a now defunct network of misinformation websites said that he netted €200 a month at the most in 2017. In Romania, the owner of Active News, a company that runs such websites, posted a net profit of €31,000 in 2018 but it also incurred debts of €6,800. 

      In Serbia, Pink International reported an operating profit of €10.2m in 2018. Yet, the company owns not only the misinformation website Pink.rs, but also a nationwide

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