Google strikes news deal with Australia’s Seven West Media


As the Australian Government pushes ahead with a law that would force the internet giants to pay media companies for content, Google has struck a news deal with Australia’s Seven West Media Ltd.

Seven, which owns a free-to-air television network and the main metro newspaper in the city of Perth, announced it would supply content for Google’sNews Showcase platform. It did not disclose terms.

The deal shows Seven splitting from rivals News Corpand Nine Entertainment Co Holdings Ltd which have failed to reach agreements with Google and instead backed laws, set to be passed this week, where the government sets the online giant’s content fees in the absence of a private deal.

So far in Australia, only specialist online publishers and one regional newspaper have struck deals to receive payment fortheir content appearing on the new Google platform which wentlive in the country this month.

Google’s Australia CEO Mel Silva said the U.S. company was”proud to support original, trusted, and quality journalism” by featuring Seven on its platform.

Last month, Silva told a parliamentary hearing Google would pull its search engine from Australia if the so-called NewsMedia Bargaining Code became law.

A Google representative declined to comment on the effect of the Seven deal.

Seven separately reported a 26.5% jump in underlying profitfor the six months to end-December, helped by strong performancein its advertising market.

Seven shares jumped as much as 10.6% to their highest levelsince May 31, 2019 in early trade, while the broader marketwas up 0.9%.