Nine Entertainment’s chief executive, Matt Stanton, marks his first year in one of Australia’s most challenging corporate roles. Under his leadership, the company grapples with significant threats from tech giants like Google and Meta, which have been encroaching on Nine’s advertising revenue and content. Adding to the complexity, artificial intelligence companies such as OpenAI and Anthropic are now leveraging Nine’s content to train their AI models without compensation.
This situation represents a formidable challenge, as well-capitalized American companies apply pressure on traditional media outlets. Stanton and his peers are hopeful that the Australian federal government will intervene, much like it did with the mandatory news media bargaining code aimed at securing compensation from Google and Meta. However, with Meta stepping away from negotiations, the resolution now rests with the Albanese government.
Lobbying for Government Support
Stanton recently spent a day in Canberra, engaging in regular lobbying efforts to advocate for a stronger governmental stance. He believes the government supports their cause, and he has joined forces with other Australian publishers, including rival News Corp, to ensure that this support translates into decisive action.
The coalition seeks to address the growing threat posed by AI companies like OpenAI, which Stanton claims are “scraping” content from Nine’s assets, such as the Australian Financial Review, at an alarming rate of ten times per second. This unauthorized use of content to train AI models without compensation is likened to a game of Whac-A-Mole, with no straightforward solution in sight.
International Trade Concerns
Compounding these challenges are potential trade complications with the United States under President Donald Trump, known for his protectionist policies. As Prime Minister Anthony Albanese prepares for discussions with Trump, there is cautious optimism that the U.S. president will recognize the existential threat facing Australian publishers. However, Trump’s unpredictable nature adds an element of uncertainty to these negotiations.
Stanton must also navigate Nine’s internal challenges, including revitalizing the company’s culture and addressing a soft advertising market. Since taking the helm, he has implemented significant changes to unify the company’s diverse operations, leveraging data from digital assets to enhance business performance.
Strategic Business Moves
One example of Nine’s strategic approach is its use of data from subscribers of The Age and The Sydney Morning Herald to target audiences for its streaming service, 9Now, during the Australian Open tennis. This strategy underscores Nine’s competitive advantage in the media landscape.
Meanwhile, other industry players are taking note. Recently, Kerry Stokes’ Seven West Media proposed a merger with Southern Cross Media, reflecting a broader industry trend toward consolidation.
Financial Maneuvers and Future Prospects
In a surprising move, Nine sold its 60 percent stake in the digital real estate portal Domain, despite it being a growth area unaffected by digital disruption. Stanton explained that the $3.2 billion offer from U.S. property giant CoStar was too lucrative to decline.
“It’s all about shareholder return… because the price was too good to say no to,” Stanton stated.
With the proceeds, Nine has returned some capital to shareholders and retained funds for potential acquisitions or bidding on sports broadcast rights. The company may further bolster its financial position following the review and potential sale of its radio business.
Speculation surrounds Nine’s potential acquisition of outdoor advertising group oOh!media. While Stanton has not ruled out this possibility, he remains noncommittal about future moves.
As Nine Entertainment navigates these multifaceted challenges, the company’s strategic decisions and government interventions will play a critical role in shaping its future in a rapidly evolving media landscape.
