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· Posted on
March 13, 2024

After being dumped by Meta, Google is trying to woo Aussie media with roses and algorithms with a new media deal

After Meta had warned that it won't be renewing their deals with media outlets, Google announced it has started to negotiate a new deal.

What's the key learning?

  • Media companies have been forced to pivot their business model in the past and it may just be happening once again.
  • When the internet happened, media companies needed new ways to monetise - like locking articles behind paywalls, digital banner ads and partnering with brands for sponsored posts.
  • Google’s potential deal with Australian media could open up whole new ways for them to make money.

👉 Background: In 2021, a mega conflict arose between Big Tech and Australian media companies. Google and Facebook were displaying news articles in their News sections, and news organisations wanted compensation for this. Ultimately, Google and Meta reached agreements to pay up to $200 million annually.

👉 What happened: Fast forward to today. Meta has warned it won't be renewing their deals with media outlets, but Googles split ways. It has announced it has started to negotiate again. But this time, things will look a little different, because Google now has its AI bot Gemini.

👉 What else: Google is looking at an arrangement where its financial compensation to media outlets also gives it permission to use media content for training its generative AI chatbots.

What's the key learning?

💡Media companies have been forced to pivot their business model in the past and it may just be happening once again.

💡Back in the day, it was all about ads, classifieds and selling the actual newspapers. But when the internet happened, media companies needed new ways to monetise - like locking articles behind paywalls, digital banner ads and partnering with brands for sponsored posts.

💡Now, the future of monetisation seems to be through AI:

  • We've seen it with Axel Springer partnering with OpenAI and receiving compensation
  • We've also seen it with New York Times suing OpenAI and Microsoft for compensation

And Google’s potential deal with Australian media could open up whole new ways for them to make money.

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