The head of Nine Entertainment sees a “world of growth in publishing” on the horizon backed by laws designed to force tech platforms into commercial deals, even as the network cuts costs across its newsrooms.
Parliament passed revamped media bargaining laws last week, clearing the way for levies on global tech platforms that fail to strike deals with Australian news outlets for the use of their journalism.
Nine’s chief executive officer, Matt Stanton, told analysts on Wednesday he expected platforms such as Google and Facebook owner Meta to contribute amounts comparable to those under their previous arrangement, struck in 2021.
“There’s a number of variables that fly around, not just in news media bargaining, but yes, there is a world of growth in publishing,” Stanton said.
He said Nine also had a “good pipeline” of AI deals coming through after recently signing an agreement allowing Microsoft’s Copilot to access content.
The upbeat outlook comes at a challenging time for the broadcaster and publisher, which is stripping out more than $160m in costs over a three-year period as it revamps its business.
Nine recently announced a redundancy program at its Sydney Morning Herald and the Age newsrooms after the metropolitan mastheads were hit by a prolonged, weak advertising market.
Nine’s business masthead, the Australian Financial Review, has been spared the cuts and remains a robust revenue earner, according to financial results for the year to 30 June released on Wednesday.
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Nine reported broadly flat revenue streams from its publishing arm, and a small decline from its streaming and broadcast unit, despite a record result for Stan. Nine’s television network has been weighed down by a weak advertising market.
Stanton said the company was focusing on “growth assets”, which include its newly acquired digital outdoor media company QMS, while it reduces exposure to “structurally challenged and smaller assets”.
Nine recorded a full-year net profit result of $142m from continuing businesses.
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