Following comments by Nine chairman Peter Costello yesterday which called for tech giants Google and Facebook to pay $600 million a year to media businesses for news content, News Corp Australasia executive chairman Michael Miller has today set his price.
“I am aligned with Mr Costello’s strong call that the tech companies must pay for the news content they take and profit from,” Miller told the AFR.
“While Mr Costello estimates that the platforms should pay Australian media companies around $600 million per annum, there are different approaches to negotiating with them.
“Our modelling suggests the figure is much higher than $600 million and former senator Nick Xenophon, whose advocacy sparked the ACCC inquiry into the platforms, has nominated $1 billion.”
In his comments yesterday, Costello suggested the $600 million as it would roughly equate to 10 per cent of local revenue, with the ACCC having found tech giants to have earned $6 billion in 2018.
Miller argued that other factors have to be taken into consideration when quantifying this sum.
“But in this regard, it is important to remember that the platforms’ unfair and monopolistic behaviours extend beyond simple loss of revenue and the mandatory code the ACCC will put in place will include, among other things, fair arrangements for access to data, understanding of algorithms, direct access, customers and fair treatment of news organisations’ unique and valuable content,” Miller said.
“The purpose of the mandatory code is to address the large imbalance in bargaining power between individual news content publishers and the digital platforms, to facilitate a fair negotiation between them about the news content that the platforms take. Getting the code itself right is the first order of business.”
Having stepped in to enforce a mandatory code of conduct between tech giants and media businesses last month, the government is expected to release a draft code in July.
The code, which will see the likes of Google and Facebook pay for news content, will be a world-first.
Despite many advertisers cutting back on their agency fees and ad spend, the Lower North Shore based, indie agency Ambire has recently been appointed 6 new accounts as the agency takes on Digital Media Buying, Website Build and Development, Digital Strategy and SEO projects across a range of verticals. Back in March, the agency won […]
Avast, a global leader in digital security and privacy products, has appointed Illuminate as its integrated communications and PR partner in Australia following a competitive pitch process. With over 400 million users online, Avast offers products under the Avast and AVG brands that protect people and businesses from threats on the internet and the evolving […]
Network 10’s broadcast video on-demand platform (BVOD), 10 Play, has continued the roll out of its world-class unified app experience on connected TVs with the new platform now available on Apple TV, Amazon’s FireTV and FireTV Stick Lite and Android TV. The new app platform improves the audience experience on 10 Play with visually rich and […]
Seven Network today announced popular presenter Sonia Kruger and 7NEWS sports anchor Matt Shirvington will join legendary golfer Greg Norman and American actor/comedian Rob Riggle on the upcoming extreme mini golf competition series, Holey Moley. Sonia will host the show set to premiere on Channel 7 in 2021, with Matt sharing commentating honours with Rob (Saturday Night Live, The Hangover, Step Brothers, The Other Guy), […]
In an Australian first, Optus is the first mobile network provider in Australia to allow customers to connect to a mobile network using an eSIM via an app on their phone. Optus was first to launch eSIM support for mobile phones to Australians in April 2019 and today’s innovation transforms the consumer journey with a […]
Tenka CEO Rob Mills has today announced a new management structure for the sport and entertainment measurement business, Turnstile. Dan Gaunt (pictured), currently the Head of Product for Turnstile, has been promoted to General Manager. Dan will now report directly to Mills, who congratulated Dan on his appointment. “Dan brings a powerful combination of consulting, […]