This was the week when Facebook struck a three-year deal with News Corp, in Australia, having agreed something similar with SevenWest Media, and the Nine Entertainment Company.
As a result of government pressure (and legislation), Google and Facebook – which together make some A$5bn in advertising in Australia – have effectively been forced to compensate (only) the largest news publishers for the revenue they have lost. It’s irresistibly big money (Nine is said to be receiving A$30m a year) and reflects the fact that some traditional media needs the huge audiences – even though the platforms are, arguably, commoditising their news and eating their brands. But – although the Facebook deals are apparently for “just” three years – the news organisations haven’t just done some grubby little deal with the “enemy”, it’s a big deal. An astonishing $200-250m per year will be pumped into Australia’s largest media owners by Facebook and Google.
News Corp’s CEO Robert Thomson spelled out just how comprehensively peace has broken out in what has been Rupert Murdoch’s longterm and sometimes lonely war with the digital behemoths: “The agreement with Facebook is a landmark in transforming the terms of trade for journalism, and will have a material and meaningful impact on our Australian news businesses. Mark Zuckerberg and his team deserve credit for their role in helping to fashion a future for journalism, which has been under extreme duress for more than a decade.”
But, as when the world’s newspapers first poured their content free onto the new fangled internet – in a panic – almost 20 years ago, it feels a lot more like short-term tactics than long-term strategy. Whether or not the political pressure and the deals are repeated elsewhere, will the platforms now expect to escape the regulatory shackles they fear most of all? Mmm.
