On Thursday, the Albanese government announced plans to force big tech companies to pay for Australian journalism through the news bargaining incentive.
In a press conference, Assistant Treasurer Stephen Jones said the Albanese government is committed to ensuring a strong, viable and robust independent news media sector and independent journalism.
“Today, we announce measures to strengthen that code. The News Bargaining Initiative will be a new addition to that code, which will create a financial incentive for agreement-making between digital platforms and news media businesses in Australia,” he said.
The incentive will contain a charge on relevant platforms based on Australian-sourced revenue.
“The charge will include a generous offset for the commercial agreements that are voluntarily entered into between the platforms and news media businesses.
“The platforms who will be in scope for the charge will be significant social media platforms and search engines with an Australian-based revenue in excess of $250m.”
Stephen Jones and Michelle Rowland
Michael Miller, executive chairman at News Corp Australasia welcomes the new incentive and says it will provide a foundation for rebuilding the media industry after the loss of an estimated 1000 jobs this year.
“[This] ensures Australian news media businesses will continue to deliver inquiring and professional journalism, which has never been more important to cohesive, democratic societies,” he said.
“Following today’s announcement I will be contacting Meta immediately to seek to restart the commercial relationship with News Corp Australia that it walked away from earlier this year.
“I will also be making contact with TikTok with the intention of reaching a commercial agreement with them as well.
“I believe news publishers and the tech platforms should have relationships that benefit both parties on commercial and broader terms, and the Government has set a clear timetable to conclude discussions.
“The package of recent Australian initiatives aimed at social media which now include restricting under 16s from accessing social media, moves to take on online scams and a new ex-ante competition framework, shows the Government is prepared to be a leader in setting the rules and expectations for how big tech should operate in our society.”
Michael Miller.
Seven West Media managing director and chief executive officer, Jeff Howard says it welcomes a strengthening of the News Media Bargaining Code.
“We [also] welcome the Government’s commitment to ensuring Australian media businesses are fairly remunerated for the news we produce, so that Australians continue to receive reliable and trusted Australian news,” he said.
“An enhanced News Bargaining Incentive means trusted and reliable news will continue to appear on these platforms, combatting the growing problem of misinformation and disinformation.”
Vanessa Lyons, CEO of ThinkNewsBrands also welcomes the announcement, saying Australia’s news industry is ‘vital for the proper functioning of our democratic society’.
“Australian journalists and publishers deserve to be fairly compensated for the important work they do,” she said.
“The ‘news bargaining incentive’ also acknowledges Australians’ strong engagement with news, the close relationship they have with it, and the importance they place in quality and trusted publishers.”
Vanessa Lyons.
Matt Stanton, acting CEO, Nine, said: “Today is a positive step forward for Australians seeking ongoing access to news sources that can be trusted and Nine welcomes the action taken by the Government to strengthen the News Media Bargaining Code framework. We hope today’s announcement will help ensure access to reliable news sources and protect the sustainability of Australian news media.
“We have been working closely with the Government on this issue in recent months and look forward to working collaboratively on the implementation to ensure the right regulatory frameworks are achieved. We remain open to direct engagement with international tech companies to accelerate the practical implementation of the Government’s proposed approach.”
Matt Stanton.
Independent publisher Man of Many says it welcomes efforts to address inequities in Australia’s media sector but raises critical concerns about the potential implications for independent publishers.
“While the proposal offers an opportunity to improve funding structures and accountability, the legislation must ensure fair support for independent outlets and safeguard against unintended consequences such as exacerbating existing disparities.
“Without inclusive reform, the dominance of large corporations will continue to limit the breadth of perspectives available to Australian audiences, undermining the principles of a free and independent press.”
Man of Many advocates for expanding funding eligibility, which would include all ACMA-registered news organisations, particularly independent and digital-first publishers, in funding allocations.
Network 10 spokesperson said: “We appreciate the Government’s proposal will apply pressure on the social media and tech companies to fairly remunerate Australian news media services for the work of its journalists and newsrooms.
“This provides real tangible benefit to these platforms and ensures that trusted, regulated, local and impartial news content is accessible online. We are hopeful common sense prevails, and this brings all parties back to the negotiating table.”
Bridget Fair.
Bridget Fair, Free TV CEO, said the government’s new News Bargaining Incentive is a win for the Australian public for the sustainability of local news media.
“Global digital platforms enjoy extreme market power and the inability of Australian media companies to negotiate fair value for their content with these essential and unavoidable business partners is a threat to our ability to continue to access the local journalism that is essential to our democracy.
“The News Bargaining Incentive is a crucial step forward for Australian media and more importantly for the millions of Australians who want their local broadcast services to provide them with trusted news and shared entertainment experiences.
“We look forward to working with the Albanese Government on the consultation process for the final design of the scheme in coming months,” Fair added.