A new media-related law in Australia that requires technology companies to pay for news content culminates in a three-year deal between Facebook and News Corp, owned by media conglomerate Rupert Murdoch.
Last month the Australian parliament launched the News Media Bargaining Code Act which ensures media are paid for news content on Facebook or Google.
Facebook and Google had shown resistance when the Act was in the process of negotiation. Facebook had decided to no longer publish news content specifically for their service in Australia.
Australia Gets Global Attention Because of This Rule
Australia’s move to deal with media business with these technology companies has received global attention. It’s including Canada and the UK which are considering doing the same.
“The agreement with Facebook marks a transformation in terms of trade for journalism. And will have significant material and impact for the Australian media business,” said News Corp CEO Robert Thomson as reported by Reuters, Tuesday (16/3).
The agreement with Facebook was announced on Monday which includes News Corp’s The Australian daily and The Daily Telegraph in New South Wales. But the contents of the deal regarding financial matters were not clear. News Corp also said that Sky News Australia also reached an agreement with Facebook.
“We are committed to bringing Facebook News to Australia,” said Facebook’s head of news partnerships for Australia and New Zealand. It’s in response to deals with News Corp and Sky News Australia.
Before Facebook, News Corp in February had struck a deal with Google. It’s in order to develop a subscription platform, share ad revenue and develop video journalism by YouTube.
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