Business & Finance
Nine Entertainment CEO forecasts growth from new media bargaining and AI laws despite cost-cutting
The Australian media network is implementing $160 million in budget cuts while anticipating new revenue from tech platforms and AI licensing deals.
The short version
- Nine Entertainment CEO Matt Stanton expressed confidence that recently passed Australian media bargaining laws will drive publishing growth by forcing tech companies to pay for journalism.
- The optimistic outlook comes as the company implements a three-year, $160 million cost-cutting program, which includes redundancies in its metropolitan newsrooms.
- Nine is banking on future revenue from artificial intelligence licensing, having already signed a content-access agreement with Microsoft's Copilot.
Key facts
- The Australian parliament passed revamped media bargaining laws that allow for levies on global tech platforms like Google and Meta if they do not negotiate commercial agreements with local news outlets.[The Guardian]
- Nine Entertainment CEO Matt Stanton stated he expects tech platforms to contribute amounts comparable to the previous agreements established in 2021.[The Guardian]
- Nine reported a full-year net profit of $142 million from continuing businesses for the fiscal year ending June 30.[The Guardian]
- The media group is stripping out more than $160 million in costs over a three-year period, resulting in a redundancy program at the Sydney Morning Herald and the Age newsrooms due to a weak advertising market.[The Guardian]
- The Australian Financial Review was spared from the redundancy cuts and continues to be a robust revenue earner for Nine.[The Guardian]
- Nine has entered an agreement allowing Microsoft's Copilot to access its journalistic content and is pursuing a pipeline of additional AI licensing deals.[The Guardian]
What remains uncertain
- The exact financial return from the newly passed media bargaining laws remains uncertain, as it depends on variables in negotiations and whether tech platforms will ultimately agree to direct commercial deals or face government-imposed levies.[The Guardian]