Nine Entertainment’s CEO Mike Sneesby has said that the move by Facebook and Instagram to prioritise video content should be considered when renegotiating news media bargaining code deals.
See Also: Inside Nine AGM: Chair Peter Costello and CEO Mike Sneesby on performance, Paris and profits
Speaking at Nine’s AGM on Thursday, Sneesby told shareholders that “There has been a significant increase in the use of our video content – news-related, sport-related and entertainment-related video content – across both Facebook and Instagram’s Reels businesses.
“Notwithstanding the fact they may be considering their position in the traditional image and text-based news, video content has ramped up considerably. I don’t have a specific figure, but it’s material. And that certainly is an important thing for us to come to the table on to work out how we reach agreement on compensation for that video content.”
In 2021, Nine joined other major Australian news outlets in signing on to the News Media Bargaining Code to ensure that Nine would be paid for content running on Meta and Google’s platforms.
The deal with Meta was for the supply of news video clips and access to digital news articles on Facebook news products, for a term of up to three years with a minimum amount payable over the term.
With that three year term set to expire in 2024, next year will see the company join the tech giants at the table to renegotiate a deal – something that Nine has already suggested they may be hesitant to do.
Back on Thursday’s AGM, however, Nine chairman Peter Costello said that “he would like to continue” the agreements with Meta and Google., but that “the critical question is whether Meta is going to stay in this particular business.”
“This is just a new iteration of a very old point. In the old days, you made a movie and if Joe Blow got a copy and started showing it in his picture theatres, you were entitled to a cut. Now, these days, somebody gets some footage, and they put it up on TikTok, or Meta, they get advertising. And it’s the same thing.”