Australia proved its position as a test market for big tech platforms paying publishers to use their content online when Seven West Media, comprising both TV and newspapers, signed agreements with Facebook and Google. The agreements mean that two of the country’s biggest media groups and a number of smaller publishers now have made agreements with big tech platforms.
Australia recently introduced a law saying the big platforms have to agree to pay publishers. The law includes a clause giving authorities possibility to intervene if domestic media can’t make big platforms agree to pay.
Australian media company Nine, that also has both TV and newspapers, has earlier signed an agreement with Google.
Rupert Murdoch’s News Corp recently signed global agreements with both Google and Facebook. News Corps owns two thirds of Australia’s newspapers.
The agreements are for Google News Showcase and Facebook News tab. Both tech companies have announced that they will spend one billion US dollars each over three years globally on paying publishers for content.
The introduction of the Australian legislation, that is now discussed as a model also for other countries, caused a lot of turmoil as both Google and Facebook fiercely argued against it. After Google had threatened to stop its search function in the country and Facebook for a few days stopped Australian users from sharing news, a compromised was reached and a modified law was approved by the parliament.
“These partnerships have been made possible by the introduction of the Media Bargaining Code,” said Seven CEO James Warburton in a statement, referring to the new law.
“They underpin our sustainability and enable us to continue to build our digital platform.”
Seven’s agreement with Google is said to be for five years and the one with Facebook for three years.