• Nine Entertainment Co has announced it has formalised deals with Google and Facebook.
• The deal follows similar announcements by News Corp Australia and Seven West Media earlier this year.
• While it has not confirmed any plans publicly, the media company has signalled it wants to reinvest profits received from the tech giants into local journalism.
• Visit Business Insider Australia’s homepage for more stories.

Nine has successfully inked deals with Google and Facebook, the media organisation announced today.

The deal with Nine Entertainment Co follows similar agreements with Australia’s other two media behemoths: News Corp Australia, owner of The Australian, The Daily Telegraph and Herald Sun, and Seven West Media.

Business Insider Australia is published by Pedestrian Group, which is wholly owned by Nine Entertainment Co.

Industry sources broke the news today to The Sydney Morning Herald, speaking anonymously because they had signed non-disclosure agreements.

The sources said the two deals were signed early on Tuesday, after months of negotiations and following the introduction of the landmark news media bargaining laws in February.

Earlier this year Google and Facebook struck non-binding agreements for the use of news articles with Australia’s major media companies, including News Corp, Nine Entertainment Co, and Seven West Media, after the federal government introduced new laws that attempted to force tech giants into commercial negotiations with media companies.

The media bargaining laws set out a framework for Google and Facebook to broker commercial deals with media companies for the value they gain from having news content on their platforms.

The deal with Facebook is for the supply of news video clips and access to digital news articles on Facebook news products, for a term of up to 3 years with a minimum amount payable over the term.

The five-year Google deal includes the supply of news content (excluding video) for News Showcase and other news products.

Nine to invest in newsrooms

While Nine has not confirmed it will reinvest the money into newsrooms, statements made publicly by Nine leadership suggest it is committed to using at least some of the money it will receive to support journalism.

After signing the deals, News Corp said it planned to hire an additional 100 journalists.

Hugh Marks, the former chief executive, has said money will be put into journalism, and current Nine chief executive Mike Sneesby said in a note to staff the deals would contribute to helping journalism thrive.

Sneesby confirmed there had been discussion about how the revenue from the deals would impact business.

“While the precise dollar value of the deals are commercial-in-confidence, they will play a role in evolving Nine to a world where the majority of our revenue is digitally led,” he said.

“These deals will contribute to supporting the world-class journalism on which our business thrives and to give us the opportunity to pursue growth that will continue to underpin the long-term strength of our business.”

Nine Entertainment Co owns The Sydney Morning Herald and The Age, as well as a television network, radio stations 2GB and 3AW, streaming service Stan and a majority stake in real-estate listings company Domain.

The media company also confirmed the news in a statement on the ASX and said it expected growth in publishing earnings before interest, tax, depreciation and amortisation to be between $30 to $40 million this financial year.

“The deal with Facebook is for the supply of news video clips and access to digital news articles on Facebook news products,” the statement said.

The 5-year agreement with Google includes the supply of news content (excluding video) for Google’s News Showcase and other products. Google will also expand its marketing initiatives across Nine’s platforms.”

Other local news outlets including Solstice Media, publisher of The New Daily and Crikey owner Private Media have also signed formal agreements while other outlets such as the ABC have signed letters of intent with the two platforms. Guardian Australia has signed a letter of intent with Google, but not with Facebook.

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