The Australian Broadcasting Corporation and publisher Nine Entertainment said it has signed multi-year content supply agreements with Google and Facebook to use strict new licensing laws to increase profits.
This step means that Australia’s three major media companies have now reached deals with US technology giants, and until this year, these technology giants have strongly opposed the law to allow them to negotiate the fees they pay to drive clicks on links to their platforms.
The owners of the Australian Financial Review and the Sydney Morning Herald and nine free TV channels stated that it will provide five years of articles and clips for Google’s News Showcase platform and three years of articles and similar Facebook products. Clip.
“These transactions will help support our business booming world-class journalism,” Nine CEO Mike Sneesby told employees in an email reviewed by Reuters, adding that they will also help the company pursue growth To consolidate its long-term strength. semester.
A Google spokesperson declined to comment, while Facebook could not immediately comment.
In recent months, competitors 7 West Media and Rupert Murdoch’s News Corp., which dominate the Australian traditional media market, have also signed similar agreements on the 9th.
Like other companies, Jiu Company did not disclose the financial details of the transaction.
But it said it hopes they can increase the pre-tax profit of its publishing department by as much as A$40 million (approximately Rs 2.25 billion) in the year ending June 2022, making it the first company to publish in new publications. Value-added company. arrangement.
In the six months to the end of December, the division’s pre-tax profit was A$68.1 million (approximately Rs 3.8 billion).
In a client report, Morningstar analyst Brian Han described the transaction on the 9th as a “juicy, high-margin arrangement that ultimately transformed the image of the much-maligned and structurally challenged department into one that can now be better (although still In the reduction of news resources monetization sector”.
In afternoon trading when the entire market was flat, 9 stocks rose 5% and rose 1%.
Since the fierce dispute with the government over the law that caused Facebook to temporarily block all third-party content on its Australian platform, the so-called “Big Tech” company has signed an agreement to purchase content from dozens of smaller regions and professionals. By.
Last month, the managing director of the Australian Broadcasting Corporation said in a congressional hearing that the state broadcaster has signed a letter of intent with media companies to reach a deal with Facebook and Google, but has not yet finalized an agreement.
Thomson Reuters 2021 ©