(Australian Associated Press)
Nine has struck deals with tech giants Google and Facebook that will mean it gets paid for its news content.
The media company announced the deals in a statement to the ASX on Tuesday.
Facebook will pay Nine for news video clips and access to digital news articles on Facebook news products. The deal will initially last for up to three years.
The parties have agreed on a minimum amount to be paid under the deal.
Nine was reported to have inked a letter of intent with Facebook in March.
Nine will supply news content to Google for its News Showcase and other news products.
Under the five-year deal, Google will do more marketing across Nine’s platforms.
Nine says the amount payable is a fixed annual fee with modest growth in the early years.
Nine’s own newspapers The Sydney Morning Herald and The Age are reporting that the deals are worth hundreds of millions of dollars.
The deals will help Nine’s publishing division boost its net income by $30 to $40 million in the coming financial year, the ASX statement says.
The growth in earnings before interest, taxes, depreciation and amortisation is also aided by ongoing growth in subscriptions revenues for Nine’s mastheads.
The deal comes after the News Media Bargaining Code came into effect in March. The code forced Facebook and Google to negotiate with news publishers to pay them for their journalism.
Google remains in talks with a range of regional and smaller publishers.
It signed a letter of intent with the ABC last week.
More than 100 publications are already featured on its Showcase product.
Facebook is still in negotiations with a range of other publishers.