Google has agreed to pay Nine Entertainment Co more than $ 30 million in cash per year for the use of its news content, a major step forward for the search giant and the media company ahead of the news introduction. negotiation laws.
Industry sources familiar with the talks, who spoke anonymously due to nondisclosure agreements, said Nine signed a letter of intent with Google overnight for a deal worth more. $ 30 million in cash per year for five years. A final trade agreement could be found within the next fortnight. Several industry sources who were unable to speak publicly due to confidentiality agreements said it was the largest news deal signed by Google in Australia to date.
Neuf is the owner of The Sydney Morning Herald and Age.
The sources said the five-year agreement covers the use of news articles on a variety of different products such as Google News Showcase and Subscribe with Google, a product that helps the media engage with subscribers, but a revenue sharing agreement for the use of content on YouTube is not part of the Nine arrangement.
The deal is important because it covers content for Nine’s major newspapers, television, radio and digital assets, and will provide sufficient funding to support the company’s newsrooms. It will also mean that Google will not be forced into a risky arbitration process with Nine under the government’s new media trading code, which will be debated in parliament today. Google had previously threatened to shut down its search engine in Australia if the government did not revise certain aspects of the code.
Nine is the largest national media company to date to sign a letter of intent with the $ 1.8 trillion search engine giant. Kerry Stokes’ Seven West Media reported in its financial results that it has signed a letter of agreement with the tech giant for the use of its content, a deal which sources say is valued at more than $ 30 million. dollars. Terms of the deal were not disclosed, but industry sources said some of the money is in the form of advertising credits and a revenue-sharing agreement for the use of content on YouTube.
The agreements that Google will make with companies such as Nine and Seven do not relate to the use of content in search. However, organizations have been willing to accept them in principle because the amount of money on the table is worth the same, or a similar amount, that a business would have received for appearing content in Google Search.
Industry sources said Monday that the letters of intent between Goalkeeper Australia, Nine and ABC were imminent. Goalkeeper Australia and the ABC could both sign deals for their content today. Interviews with other points of sale such as Australia Daily Mail and News Corp Australia are ongoing. News Corp, which owns a series of newspapers in Australia as well as The Wall Street Journal and London time, is expected to sign a global agreement for its content.