The media company controlled by Rupert Murdoch said on Wednesday that News Corp and Alphabet’s Google reached a global news deal, one of the company’s most extensive deals with large technology companies.
The two companies will develop a subscription platform to share advertising revenue through Google’s advertising technology services, develop audio journalism, and develop video journalism through YouTube. The transaction was carried out after years of public quarrels between Murdoch and Google, most recently in Australia, where Google threatened to shut down its search engine to avoid “infeasible” content laws.
This is the 89-year-old media mogul, his son Lachlan and News Corp CEO Robert Thomson seeking to compensate for the pinnacle of high-quality content on the platform. Murdoch had previously received payments for its Apple News and Facebook News products from Apple and Facebook.
The company declined to comment on the financial details of the transaction, saying it involved “large payments” from Google.
According to media reports, in Australia, the country’s two largest free TV broadcasters have reached a deal with Google that totals 60 million Australian dollars (about 3.4 billion rupees) per year.
The Australian transaction took place a few days before the government plans to pass the law. If it can’t make a deal privately, the government will allow it to appoint an arbitrator to set Google’s content fees. This factor is considered by the government and the media to be involved in negotiations. The turning point of the deadlock a year ago.
News Corp owns two-thirds of newspapers in Australia’s three major cities.
As the biggest beneficiary of Google’s departure from the Australian market, Microsoft has publicly endorsed the proposed Australian law and recently urged the US government to copy it.
According to documents seen by Reuters, the tech giant agreed to pay a batch of 121 French news publishers US$76 million (approximately 5.5 billion rupees) within three years to end a more than one-year copyright battle. The company reached a deal with Google. .
Google has also taken action to secure deals with major publishers in the UK, Germany, Brazil and Argentina.
“In fact, due to a large number of antitrust reports, and the main decision makers in Europe and Australia defending the importance of a strong, independent press to society, Google has attracted everyone’s attention. This fact only highlights the importance of Google. [Australian] Jason Kint, CEO of Digital Content Next, a media industry trade association, said that the new laws of Congress and the United States and other markets are beginning to realize its harm to democracy.
The impact of News Corp’s deal with Google on the press release environment remains a big issue.
In the U.S., smaller publishers in particular have lost advertising revenue on the platform. The news media trade organization News Media Alliance plans to introduce a new bill to Congress that will allow publishers to not violate antitrust laws. Collect collective bargaining with Facebook and Google.
David Chavern, president and CEO of the News Media Alliance, the largest trade organization in the news industry, said: “The large national publishers already have a certain degree of influence.”
But “how do smaller publishers make deals? This is only true if there is some kind of collective action or system-otherwise, you will be left with the platform to choose winners and losers.”
In January, Reuters, a subsidiary of Thomson Reuters, reached an agreement with Google to become the first global news provider for Google News Showcase.
Thomson Reuters 2021 ©
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