Google nears $30 million deal with Australian Nine Entertainment

  • Google has signed a $30 million licensing deal with Australia’s Nine Entertainment.
  • As part of the deal, users can access paid content for free through the Google News app.
  • The deal follows a few months of tense wrangling between Google executives and Australian lawmakers.

Google has reportedly struck a $30 million deal with Australian broadcaster Nine Entertainment amid mounting political pressure to rebalance the relationship between tech platforms and traditional media.

Nine has not officially confirmed the deal, although it was reported by his own Sydney Morning Herald newspaper. Other company print titles include The Age and Australian Financial Review.

Under the terms of the agreement, Google would have agreed to pay Nine just over $30 million per year for the next five years, and will provide Google users with free access to selected content from newspapers, television and radio networks of Nine through different products.

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The deal comes just days after the tech giant announced a similar deal with Nine’s domestic rival, Seven West Media, and comes amid months of wrangling with government officials over its media relations .

Australian lawmakers are set to debate proposals that would give news publishers the ability to “negotiate individually or collectively” with Facebook and Google, and charge them a fixed fee to display their content in their search engine and feeds. news.

With the threat of this regulation looming, Google has taken to making counter offers to publishers in the form of Google Showcase. This is a new dedicated news feature through which Google News users can access paid content for free, with the tech giant covering the price difference.

Google’s recent agreements with Nine and Seven West Media give it greater control over the terms, compared to the forced arbitration offered by Australia.

Google executive Mel Silva has warned that the latter course could see the company shut down its local search engine altogether.

As Google continues to call the legislation unenforceable, it is actively luring publishers to its Showcase platform.

The company has so far signed Showcase deals with more than 450 publications – including the Financial Times, Le Monde and Reuters – in 12 countries, including the UK, Germany and Brazil. The company plans to spend a total of $1 billion to attract new partners globally.

Insider approached Google and Nine Entertainment for comment.

Helen D. Jessen