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Summary
- Tech giant Google announced a landmark 3-year deal with Rupert Murdoch's News Corp for content sharing on its platform for a significant payment.
- The agreement includes News Corp media brands such as The Wall Street Journal, the New York Post, The Times, and several others to make some of their content freely available on the Google News platform.
- The news comes ahead of an Australian debate over news media laws forcing tech companies to fairly compensate legacy news outlets, to be held later this month.
Search engine giant Google (NASDAQ:GOOGL) announced a three-year deal with media giant News Corporation (NASDAQ:NWSA) offering significant payments in exchange for the media empire’s news content to be shown across its platforms.
The agreement will include the development of a subscription platform, building its audio and video journalism and the sharing of ad revenues between the two companies.
According to The Wall Street Journal, the technology giant will make a tens of million-dollar pay-out to the media company, during the agreement period. However, specific deal terms are yet to be disclosed.
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The agreement includes News Corp owned brands such as US-based outlets The Wall Street Journal and the New York Post, and its UK-based media houses such as The Times, Sunday Times, and other titles, to make some of their content freely available on the Google News platform.
Changing regulations
The news comes after media mogul and News Corp owner Rupert Murdoch has long called for changes in trade rules, arguing that Google and other internet platforms should compensate media companies for using their content.
Want to know more? Do read: In a first, Australia to make Facebook, Google pay for news content
Notably, the move follows on the back of a debate on Australian media regulations seeking to force technology companies to pay for news sourced from other media outlets. Social media giant Facebook (NASDAQ:FB) restricted access to its platform in Australia on Wednesday as a reaction to the proposed Australian law.
Want to know more? Do read: Scrap media laws imposing Google and Facebook to pay to local media outlets: US
In 2020, the technology giant had announced a US $1-billion news partnerships arm Google News Showcase to license high quality news content on its platforms. The division has already tied up with over 500 publications globally. The initiative aims to address the unfair trade rules between online platforms and traditional news companies.
Want to know more? Do read: Can Microsoft’s Bing impress Australians if Google opts out?
Stock market reaction
Media company News Corporation’s (NASDAQ:NWSA) shares closed at USD 23.18, down by 2.56 per cent as of 17 February. Comparatively, Google’s (NASDAQ:GOOGL) shares closed at USD 2,118.62, up by 0.38 per cent for the same day.
