Rupert Murdoch’s News Corp says a landmark three-year deal with Facebook to pay for its Australian content will transform journalism’s terms of trade.
Facebook also reportedly made a confidential deal with Nine Entertainment, Australia’s largest locally owned media giant, but the parent company will not confirm that a deal has been reached.
The Sydney Morning Herald and the Age reported its publisher, Nine, had signed a letter of intent to pay for the content after weeks of tense negotiations. The company will not confirm until a long-term agreement is reached with Facebook and reported to the stock exchange, a spokeswoman said.
News Corp chief executive Robert Thomson said the deal would have a “material and significant impact” on its Australian business.
“Rupert and Lachlan Murdoch led a global debate while others in our industry remained silent or supine as digital dysfunction threatened to turn journalism into a begging order,” Thomson said.
The deal marks the end of a showdown between Facebook and news publishers over growing demands to share some of their revenue with Australian media.
Google made $ 4.3 billion in advertising revenue in Australia last year and Facebook made $ 0.7 billion, according to documents filed with the Australian Securities and Investments Commission.
News Corp Australia is the largest media company to sign a deal with Facebook since the Morrison government passed legislation that would require Google and Facebook to negotiate payment with the media last month.
The specter of the law initially saw Facebook remove Australian news from its platform in an eight-day blackout that only ended after high-level talks with the federal government.
Negotiations had stalled for a fortnight after Facebook initially signed Seven West Media and three independent publishers: Private Media, Schwartz Media and Solstice Media.
Facebook has yet to sign with Nine Entertainment, ABC, SBS, and smaller independent publishers, including Guardian Australia, to comply with the news media code.
“[Facebook founder] Mark Zuckerberg and his team deserve credit for their role in helping to forge a future for journalism, which has been under extreme pressure for more than a decade, ”said Thomson.
The deal will see Facebook feature articles from the Australian newspaper news.com.au, the main metropolitan headlines of the Daily Telegraph, Herald Sun, the Courier-Mail and regional and community publications on Facebook News.
“We thank Australian Prime Minister Scott Morrison, Treasurer Josh Frydenberg and Australian Competition and Consumers Commission Chairman Rod Sims and their team for taking a principled position in favor of publishers, large and small, rural and urban, and from Australia “, Thomson. saying. “This digital outcome has been in development for more than a decade.”
The agreement also includes the extension of an existing agreement between Facebook and Sky News Australia.
In 2019 News Corp reached a separate agreement with Facebook for its posts in the United States for payments in exchange for access to additional stories for Facebook News.
The global publisher said it now has agreements with Facebook, Google and Apple to provide access to its journalism.
Australia and New Zealand News Partnerships Director Andrew Hunter said the company is committed to bringing Facebook News to Australia.
“Together, the deals with News Corp Australia and Sky News Australia mean that people on Facebook will gain access to premium news articles and breaking news videos from News Corp’s network of national, metropolitan, rural and suburban newsrooms.” Hunter said.
The news media law has been designed to address the loss of advertising revenue from traditional media companies to digital giants: For every $ 100 of online advertising spend, $ 53 goes to Google, $ 28 to Facebook, and $ 19 to everyone else.
Revenues from Google and Facebook will help employ more journalists and continue to support public interest journalism in Australia, editors say.
George is Digismak’s reported cum editor with 13 years of experience in Journalism