Nine Entertainment’s chief executive, Matt Stanton, marks his first year at the helm of one of Australia’s most challenging corporate roles. With tech behemoths like Google and Meta encroaching on Nine’s advertising revenue and content, the pressure is mounting. Compounding these challenges, AI companies such as OpenAI and Anthropic are leveraging Nine’s content to train their models, further squeezing the media giant.
This development follows Stanton’s recent visit to Canberra, where he engaged in discussions to advocate for government intervention. Traditional media operators, including Nine, are urging the federal government to enforce stricter measures, reminiscent of the mandatory news media bargaining code that previously compelled Google and Meta to negotiate compensation with publishers.
Government Intervention and Industry Collaboration
The current stalemate with Meta, which has withdrawn from negotiations, underscores the need for decisive action from the Albanese government. Stanton remains optimistic, stating, “the government has our back,” and has allied with competitors like News Corp to ensure that the government’s support translates into tangible action.
This media coalition is sounding the alarm on the threat posed by AI companies, which exploit local content without compensation. Stanton highlighted that Nine’s Australian Financial Review is “scraped” by AI 10 times every second, likening the challenge to a game of Whac-A-Mole.
“I think deals will happen on the AI – they do need our content for their models,”
Stanton remarked, emphasizing the necessity for fair compensation.
The Trump Factor and International Challenges
Meanwhile, an additional layer of complexity is introduced by international trade dynamics, particularly with the United States. The protectionist policies of former President Donald Trump could complicate negotiations, as he has previously resisted attempts to regulate US tech giants. The upcoming meeting between Prime Minister Anthony Albanese and Trump will be critical in addressing these issues, though past interactions suggest unpredictability in Trump’s responses.
Despite these external pressures, Stanton is focused on maintaining Nine’s operational momentum. He has initiated significant changes to unify the company’s diverse media assets, leveraging data across publishing, radio, streaming, and broadcasting to enhance audience engagement. For instance, Nine successfully targeted subscribers of The Age and The Sydney Morning Herald to promote its 9Now streaming service during the Australian Open.
Strategic Moves and Market Positioning
In a surprising move, Nine sold its 60 percent stake in the digital real estate portal Domain earlier this year for $3.2 billion, a decision driven by an attractive offer from US property giant CoStar. “It’s all about shareholder return … because the price was too good to say no to,” Stanton explained. The sale has bolstered Nine’s financial position, allowing for potential acquisitions or investments in sports broadcast rights.
Speculation abounds regarding Nine’s interest in acquiring outdoor advertising group oOh!media, although Stanton has neither confirmed nor dismissed the possibility. Additionally, a review of Nine’s radio business could lead to its sale, further reshaping the company’s portfolio.
As Nine navigates these challenges, the company’s strategic adaptations and potential government support could play pivotal roles in securing its future amidst a rapidly evolving media landscape. The coming months will be crucial as Nine and its peers await government action and explore new opportunities to strengthen their market position.
