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Facebook has struck a deal to pay the Australian branch of News Corp. for local articles that appear on the social media giant‘s platform – after briefly unplugging that content to protest a change in the country’s media law.
The three-year deal between Facebook and Australia’s largest media conglomerate comes after the country’s parliament amended a law requiring tech platforms to negotiate payment for reports with publishers. It also follows a similar deal between Google and News Corp.
Facebook has expressed strong objections to the legislation and last month blocked all news content from Australia before backing down amid a storm of users and publishers and after the government made some changes to the law.
“The deal with Facebook is a milestone in transforming the terms of trade for journalism, and will have a material and significant impact on our Australian news business,” said Robert Thomson, CEO of News Corp. in a press release. declaration released Monday in New York.
Thompson, who did not immediately disclose financial details of the deal, said Facebook CEO Mark Zuckerberg and his team “deserve credit for their role in shaping a future for journalism,” which has been under extreme stress for over a decade “.
Facebook executives praised the deal, saying they were eager to bring Facebook News to Australia.
Andrew Hunter, Facebook’s head of news partnerships for Australia and New Zealand, said: “Together, the agreements with News Corp Australia and Sky News Australia mean that Facebook users will have access to articles from Top news and breaking news videos from the News Corp network. national, metropolitan, rural and suburban newsrooms.
News Corp., founded by Australian-born Rupert Murdoch, owns about two-thirds of the country’s metropolitan newspapers. In addition to banners such as the australian and The Daily Telegraph, he also owns Sky News Australia.
In the USA, News Corp. owns the New York Post and Dow Jones, who publishes The Wall Street Journal and Barron, and Fox corporation, which includes Fox News Media.
Murdoch’s Nine Entertainment has also signed a letter of intent with Facebook for the use of news articles from its properties, which include The Sydney Morning Herald and Age, the Herald reports, citing industry sources who are not authorized to speak about the negotiations.
The changes to Australian law and subsequent agreements are seen as a major victory for Murdoch, who has pushed the Canberra government for years to force tech companies to pay publishers for news content.
Australia’s smallest company Seven West Media last month announcement a similar letter of intent with Facebook to receive payment for the content.
Other points of sale such as The Australia goalkeeper and ABC Australia, the national broadcaster, are still working out the details of their own accord, the Herald reports, citing people familiar with the confidential discussions.
News Corp. entered into a similar but separate deal in 2019 for its US-based posts to receive payments for accessing articles through Facebook News. The deal was a turnaround for Zuckerberg, who a year earlier suggested that he had no intention of paying for topical content.
News Corp. said it has now made deals with Facebook, Google and Apple to pay for content.
Apple, Facebook and Google Inc. are among the financial backers of NPR.