Australia’s largest media company confirms world’s first content deals with Google, Facebook will generate $30 to $40 million this year alone
- Nine released statement to the Australian Stock Exchange confirming deals
- Deals to provide content for three years will be worth $20 to $30 million per year
- Deal follows groundbreaking News Media negotiation code in March
Nine has made deals with tech giants Google and Facebook, meaning it gets paid for its news content.
The media company announced the deals in a statement to the ASX on Tuesday.
Facebook pays Nine for news video clips and access to digital news articles on Facebook news products. The deal will initially run for a maximum of three years.
The parties have agreed a minimum amount to be paid under the deal.
Nine are said to have signed a letter of intent with Facebook in March.
Nine will provide news content to Google for its News Showcase and other news products.
Under the five-year agreement, Google will do more marketing on Nine’s platforms.
Nine says the amount to be paid is a fixed annual fee with modest growth in the early years.
New Nine CEO Mike Sneesby has revealed the network cashed in on deals with Google and Facebook ahead of Australia’s first News Media Bargaining Code (above)
Nine, which also owns the Fairfax newspapers, is the largest Australian media company in Australia
Nine’s own papers The Sydney Morning Herald and The Age report that the deals are worth hundreds of millions of dollars.
The deals will help Nine’s publishing division increase its net income by $30 to $40 million in the coming fiscal year, the ASX statement said.
Earnings growth before interest, taxes, depreciation and amortization is also supported by continued growth in subscription revenue for Nine’s mastheads.
The deal comes after the News Media Bargaining Code went into effect in March. The code forced Facebook and Google to negotiate with news publishers to pay them for their journalism.
Google remains in talks with a range of regional and smaller publishers.
It signed a letter of intent with the ABC last week.
More than 100 publications are already featured on the Showcase product.
Facebook is still negotiating with a number of other publishers.