Google agrees to pay for news content landing agreements with a number of publishers

Google has changed its mind in an about-face that shows the tech giant is ready to begin paying for news.

Google has changed its mind in an about-face that shows the tech giant is ready to begin paying for news. Picture: AFP

Google has landed agreements with a number of publishers to license news content, including in Australia, in an about-face that shows the tech giant is ready to begin paying for news.

After years of declaring it would not pay media companies for using their content, Google said late on Thursday that it had reached agreements with Adelaide-based local newspaper publisher Solstice Media, Schwartz Media and The Conversation, as well as Germany’s Spiegel Group, publisher of Der Spiegel; and Brazilian media company Diarios Associados.

Google has not signed any partnerships with publishers in the US however, or with any major publishers in Australia yet including News Corp, publisher of The Australian, or Nine. It is understood to be in advanced talks with Australian Community Media, which publishes about 160 rural titles, as well as the major publishers.

The tech titan did not disclose financial details on the licensing details. Brad Bender, Google’s vice president of product management for news, said that the agreements vary depending on how much and what type of content each publisher would be providing to Google.

Google has previously resisted deals to pay for journalism. Earlier this month Google Australia managing director Mel Silva rejected calls that Google should pay for news, declaring that Google’s benefit from Australian news is “very small” and publishers have used “inaccurate numbers” in their claims to Australia’s competition watchdog.

News Corp Australasia executive chairman Michael Miller has estimated that tech giants Google and Facebook should pay as much as $1bn from the benefits they derive from media companies.

“I welcome the fact that Google has finally recognised it needs to pay for news,” Mr Miller said on Thursday evening. “It’s difficult to avoid the conclusion that this is a politicised PR exercise and that Google has struck deals with publishers that reflect its views and stance on social issues.

“These deals show that Google is willing to negotiate directly with small publishers and that makes the work the ACCC is doing to frame a code of conduct that protects publishers in those negotiations more vital than ever. It must be made to negotiate on level terms with all genuine news publishers.”

Treasurer Josh Frydenberg has instructed the ACCC to force tech companies to draw up a compulsory code of conduct that, in a world first, would govern revenue sharing with media companies as well as algorithms, data sharing, and fair use of valuable content.

That code is due at the end of the July.

Meanwhile, Mr Bender said on Thursday: “we can’t turn the clock back to a world where the internet doesn’t exist. We are highly motivated to play our part alongside other companies, governments and civil-society groups to enable a better future for journalism.”

Mr Bender also flagged a “new news experience launching later this year”.

“This program will help participating publishers monetise their content through an enhanced storytelling experience that lets people go deeper into more complex stories, stay informed and be exposed to a world of different issues and interests,” he said in a blog post. “We will start with publishers in a number of countries around the globe, with more to come soon.”

Treasurer Josh Frydenberg has instructed the ACCC to force tech companies to draw up a compulsory code of conduct that, in a world first, would govern revenue sharing with media companies as well as algorithms, data sharing, and fair use of valuable content.

That code is due at the end of the July.

Google has been contacted for further comment.

Additional reporting: The Wall Street Journal