The head of Nine Entertainment has issued a call to action for Australian Prime Minister Anthony Albanese, urging the government to prioritize a policy that would compel global tech platforms to compensate local media. This plea arises as artificial intelligence (AI) continues to disrupt traditional revenue models for publishers worldwide.
During the presentation of Nine’s half-year financial results on Tuesday, CEO Matt Stanton expressed concerns over potential delays in the government’s news bargaining incentive. “This policy is not just of great importance to Nine and the journalism we so heavily invest in; it will have long-lasting impacts on the health of our democratic nation, the voices of its communities, and the broader economy,” Stanton stated. He added, “We encourage the prime minister to give the news media bargaining code a higher priority status on the policy agenda than at present to ensure implementation doesn’t slip into late 2026.”
Understanding the News Media Bargaining Code
The proposed policy is an extension of the original voluntary news bargaining code, designed to address the power imbalance between tech giants and media publishers when negotiating payments for displaying news content. Many deals under the initial policy have expired, raising concerns about the voluntary code’s ability to address these power differentials effectively.
The rise of AI and “zero-click searches”—where users obtain information directly from search engines or AI models without visiting the original news sites—has intensified these concerns. Stanton highlighted the significant challenges posed by the increasing influence of global tech giants and the rapid evolution of AI, stating, “Australia faces some significant challenges from the increasing influence of global tech giants and the rapid evolution of artificial intelligence.”
Impact of AI on Media Companies
AI has emerged as a double-edged sword for media companies. While AI-powered platforms are transforming how people access news, Nine has managed to strike two licensing deals with key domestic corporations for using its content to train in-house large language models (LLMs). Stanton acknowledged the mixed impact of AI, noting, “There will obviously be some efficiencies coming through but a bit of disruption as well.”
He further elaborated on the company’s strategy, stating, “We’ve done a couple of LLM deals that we announced today, and there’s a good pipeline of other opportunities, both locally and we’ll see globally over time.”
Nine’s Financial Performance and Strategic Shifts
Nine Entertainment reported a 4% decline in half-year revenue to $1.06 billion, primarily due to a slump in advertising dollars and challenges in the free-to-air television market. Despite this, the company managed to increase its overall earnings by 6% to $192.2 million, thanks to a cost-cutting program aimed at reducing operational costs by about $160 million over three years.
The company has undergone significant structural changes, including selling its real estate platform Domain and radio stations. Nine is shifting its business model to focus more on assets expected to deliver superior returns in a digital world, such as the acquisition of outdoor advertising group QMS Media.
Additionally, Nine’s mastheads, including The Age, The Sydney Morning Herald, and The Australian Financial Review, offset most of their advertising declines by growing subscription income by 12% over the half-year period. The company’s streaming service, Stan, has also been a revenue growth engine, benefiting from its deal to stream English Premier League games.
Future Prospects and Industry Implications
The proposed laws targeting tech giants like Meta, Google, and ByteDance have faced delays amid broader trade negotiations between Australia and the US, further complicated by former President Donald Trump’s tariff policies. The policy aims to encourage agreements by imposing a government charge on qualifying tech companies, which can be offset when platforms strike deals with publishers.
Nine declared a 4.5 cent interim dividend, and its shares rose more than 3% shortly after reporting its results. As the media landscape continues to evolve, the outcome of these negotiations and the implementation of the news media bargaining code will be closely watched by industry stakeholders.
As the digital transformation of the media industry accelerates, the balance between innovation and fair compensation remains a critical issue. The actions taken by governments and media companies alike will shape the future of news consumption and the sustainability of journalism in the digital age.
