Australia's largest diversified media corporation Seven West Media (ASX:SWM)
has secured content distribution deals with digital conglomerate Google and social networking giant Facebook.
The Australian broadcaster and publisher has reached a five-year partnership agreement with Google, giving the Youtube owner access to original content produced by Seven’s media outlets.
Meanwhile, a comprehensive contract to feed news materials to Facebook for 3 years is pending the tech heavyweight’s final approval.
Seven West Media emphasised the significance of the deals, “Completion of the two agreements confirms the strong recognition of the quality and credibility of our leading television and newspaper news brands and entertainment content”.
Both deals are expected to generate greater revenue from content production and diversify Seven West Media’s income streams.
The agreements came as results of the ratification of the media bargaining code. The legislation is designed to entitle Australian content makers to profit shares from content views on digital platforms operators such as Facebook and Google.
The $740 million content producer expects income from the content-sharing deals will begin flowing in by the end of FY21 and will be mostly reflected on the FY22 balance sheet.
Shares in Seven West Media (ASX:SWM)
are trading 1.1 per cent lower at 47 cents