Google, Nine strike $30m news content deal
A letter of intent for use of Nine’s news content labelled ‘major breakthrough’ for media bargaining laws.
The threat of government regulation has driven Google to strike a series of 11th-hour commercial deals with Australian news publishers, just days before the mandatory media bargaining code is expected to become law.
On Wednesday, Nine Entertainment said it had signed a “letter of intent” with Google, which would see the tech giant compensate the media company for the use of its news content.
The deal, reported to be worth $30m a year, appears to be in the same vein as the agreement secured by Nine’s rival Seven West Media on Monday.
Niche pop-culture and news site publisher Junkee Media, which is owned by outdoor advertising group oOh!media, said on Wednesday it had signed a letter of intent to “curate news content” for Google’s Showcase product.
The nation’s largest news media company, News Corp Australia (publisher of The Australian), public broadcasters ABC and SBS, and the Guardian Australia remain in discussions with Google.
Josh Frydenberg said on Wednesday the federal government’s mandatory media code had prompted this week’s deals between Google and news media organisations, and he said there would likely be more announced in coming days.
“None of these deals would be happening if we didn’t have the legislation before the parliament,” the Treasurer said. “This legislation, this world-leading mandatory code, is bringing the parties to the table and is helping to pave a way forward where news media businesses are getting paid for generating original journalistic content.
“This code has succeeded where others have tried and failed. It is a framework, a lasting legal mandatory framework, which is obviously the reason why the parties have come to the table.”
The agreements between digital platforms and news media publishers will sustain public interest journalism in Australia for years to come, Mr Frydenberg said. However, he would not be drawn on whether Google would no longer be designated under the code, in light of the deals the company has cut.
“I don’t want to pre-empt any decisions that I may or may not take as the Treasurer to designate a particular digital platform under this code,” he said. “But what I have said is if commercial deals are in place, then it changes the equation.”
Kerry Stokes-controlled Seven announced a deal with Google on Monday, making it the first major Australian media group to sign a content deal for the tech group’s Showcase product.
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Great news for journalism. Google has agreed to pay Nine Entertainment Co more than $30 million a year https://t.co/nBgfVwf06e
— Bevan Shields (@BevanShields) February 16, 2021
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