Publishers Fall Over Themselves To Sign Up Before The Sun Sets
Michael Hedges February 17, 2021 Follow on Twitter
Some believe negotiating in the big leagues is just the same as in any other league, only bigger. The premise is not supported by evidence. The big leagues are special, the biggest even more so. In fact, the biggest of the big enterprises rarely negotiate. With egos in check and money no object, issues beyond the scope of hoi polloi predominate. This reality, actually, gives lessor rivals no leverage.
 Australian broadcaster and publisher Seven West Media agreed to work with search engine Google, subsidiary of Alphabet, on a content licensing deal, reported Reuters (February 15). Terms were not disclosed but the number is rumored to be A$30 million a year, just over €19 million. This is the first major licensing agreement with Google in Australia as the government pushes parliamentary approval of the News Media Bargaining Code that would force the internet search giant into binding arbitration on compensation. The Australian House of Representatives passed the bill this week, reported West Australian (February 17). Seven West Media operates TV channel Seven and publishes newspapers in Perth.
Through the furor Google Australia managing director Mel Silva consistently informed lawmakers - and everybody else - the company would pick up its bots and go away if the “code” became law. Several specialty publishers in Australia - including the marvelous online news portal Crikey - have already negotiated licensing agreements through Google’s News Showcase platform. Public broadcaster ABC, Nine Entertainment and Guardian Australia are currently negotiating with Google, reported The Age (February 15). The Age and Sydney Morning Herald are published by Nine Entertainment. The Guardian (UK) reported (February 17) that Nine Entertainment reached an agreement to join the Google News Showcase for A$30 million annually for five years. News Showcase negotiations have been concluded with French and Czech publishers.
Signing on to the Google News Showcase trades Google Money for access to content sans paywall. Search engine platforms - and their social media brethren - are well aware that users - also known as real people - are very put off having a paywall inserted between “click and collect.”Other Google services to publishers are in the mix like YouTube and the Subscribe function.
In the midst of all these negotiations Microsoft president Brad Smith injected himself on behalf of that company’s search engine Bing, even reaching out to prime minister Scott Morrison. Google has a 95% market share of Australian search usage. Bing’s share is 3.6%, making it number two and trying. Bing has not been listed as a target in the News Media Bargaining Code; only Google and Facebook. Indications were that Australian officials appreciated the gesture.
For two days there was silence from News Corp Australia, subsidiary of News Corp, principally owned by the Murdoch family. Last May News Corp Australasia executive chairman Michael Miller was demanding “billions and billions,” to paraphrase the late Carl Sagan. In recent days suggestions were floated of some sort of global arrangement extending the licensing to the US (Wall Street Journal and New York Post) and the UK (Times and Sun).
Then late in the day, came a statement conspicuously from News Corp chief executive Robert Thompson that this global agreement had been reached, reported AP (February 17). The “historic multi-year partnership with Google” would have ““a positive impact on journalism around the globe as we have firmly established that there should be a premium for premium journalism.” He said it was a lot of money but did not elaborate.
“The deal simply would not have been possible without the fervent, unstinting support of Rupert and Lachlan Murdoch, and the News Corp Board,” the statement continued. “For many years, we were accused of tilting at tech windmills, but what was a solitary campaign, a quixotic quest, has become a movement, and both journalism and society will be enhanced.”
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Big Tech is not a kind and gentle bunch. It is, after all, big business. They take the insults and threats while churning out the money. They offer to share, within limits. They cut users a lot of slack in what gets posted, within limits. But there are limits beyond which comes the ultimate hammer: deplatforming.
Concentration of media outlets in few hands is generally regarded as bad; bad for consumers, bad for workers, bad for democracy. Some, however, would disagree. Certain proprietors like the idea, particularly concentrating the money in one pot, theirs. And, too, the idea is quite attractive to certain politicians intent on concentrating a flattering message. The two, quite often, coincide.
Big tech and big publishing are in perpetual conflict. For publishers, text, audio and video, the fight is existential. After ignoring digital transition of years, they find themselves in an ever deepening hole, which they want to fill with money. Big tech, in the meantime, has grown richer and more powerful. But publishers have the ear of certain politicians while big tech attracts critics.
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