Facebook and Google sign $500m in deals with Australian media outlets

The signed content-sharing arrangements between the nation’s major media outlets and tech giants Google and Facebook are worth a total of about $500m.

Treasurer Josh Frydenberg: ‘Australia has led the world with its new legislative framework for digital platforms.’ Picture: NCA NewsWire/Martin Ollman

The signed content sharing deals between the nation’s major media companies and global tech giants Facebook and Google are worth a total of about $500m, and many more companies are still yet to finalise their agreements.

The Australian understands all of the completed deals – with some spanning up to five years – are worth half a billion dollars, and many more agreements are expected to be completed in the coming months.

Facebook has signed 12 long-form binding agreements to ensure payment is provided for content to nine media outlets – among these are News Corp (publisher of The Australian), Sky News Australia, Nine Entertainment, Seven West Media and Australian Community Media.

In addition, Facebook has four letters of intent outstanding with outlets including the ABC.

The tech giant remains in talks to finalise letters of intent for three deals including two separate ­arrangements with the Ten ­Network.

The deals come after the federal government passed ­legislation in February introducing a world-first mandatory media code ensuring Facebook and ­Google would pay for displaying news content on their platforms.

The News Media and Digital Platforms Mandatory Bargaining Code was created after extensive work with the competition watchdog, the Australian Competition & Consumer Commission, and almost three years of public consultation.

In February, Facebook chief executive officer Mark Zuckerberg overturned a week-long ban that prevented news stories generated by Australian media outlets from being shared on its site.

Facebook has signed 12 long-form binding agreements to ensure payment is provided for content to nine media outlets, Google has signed 11. Picture: AFP

Google has also signed 11 long-form agreements with publishers including News Corp, Nine Entertainment, Seven West, Crikey, Australian Community Media and The Conversation.

There are four outlets with signed letters of intent including the ABC, SBS and Guardian Australia, and discussions are ongoing with nine organisations including Southern Cross Austereo.

Essential Media’s executive director, Peter Lewis, said while the deals are important for the media industry, “they are by no means a victory lap”.

“In the last decade the estimation is about 5000 jobs went out of the media industry and that was because of the monopoly and power exercised by the big (tech) platforms,” he said.

“These deals suggest there is a significant injection of funds into the news media, although it remains to be seen how much of those funds go directly into employing journalists.”

Josh Frydenberg said ­Australia’s media bargaining code legislation has paved the way for the global transformation of how tech giants remunerate media ­outlets to share their content online.

“Australia has led the world with its new legislative framework for digital platforms,” the ­Treasurer said.

“It’s a critical micro-economic reform that boosts competition and ensures traditional news media businesses get paid for generating original content.”

The deals between outlets vary in terms of length and money paid.

“With over 20 deals already signed between Google and Facebook and Australia’s print, television and online news organisations, hundreds of millions of dollars will now flow to these businesses,” Mr Frydenberg said.

“These agreements will help ensure the sustainability, diversity and strength of Australia’s media landscape – a fundamental pillar of our national democracy.”

News Corp chief executive Robert Thomson said earlier this year: “The agreement with Facebook is a landmark in transforming the terms of trade for journalism and will have a ­material and meaningful impact on our Australian news ­businesses.”