Media powerhouse Nine Entertainment (ASX:NEC)
has officially inked news content deals with digital giants Google and Facebook.
The agreement with Facebook involves Nine feeding news materials to Facebook’s news platforms for three years.
The deal with Google has a duration of five years and gives the search engine operator access to Nine’s entire array of news content except for videos.
Nine Entertaiment currently manages a suite of popular media outlets such as Channel 9News, the Sydney Morning Herald, AFR and the Age. The network’s content contributions to Google News Showcase are considered a boost to the company’s platform as a destination for Australian online newsreaders.
The two news content supply deals are estimated to generate up to $53 million annually, prompting Nine to upgrade its guidance for EBITDA growth in production to between $30 million and $40 million.
The milestone marked Nine as the third Australian media conglomerate to secure agreements with the tech behemoths to share profits from news consumption.
Facebook and Google have agreed to split its spoils from news distribution with Australian news producers under the government’s recently ratified News Media Bargaining Code.
Shares in Nine Entertainment (AX:NEC) are trading 0.3 per cent higher at $2.98