News Corp Australia extends news deal with Google
News Corp Australia has extended its existing partnership with Google, whereby the tech giant pays for the use of the media company’s news content in its search results and news summaries.
The news was revealed on Thursday during an investor call for the ASX-listed company’s third-quarter FY24 financials.
News Corp Australia saw a 10% drop in revenue for the quarter, despite revenues from circulations and subscriptions jumping by $1 million, year-on-year.
“We fervently believe that the company is firmly on a pathway to continued success,” News Corp CEO Robert Thomson said.
“It is also worth noting that for more than a year, digital revenue has accounted for over half our total revenues, and we believe that trend is destined to continue.
“We are in the midst of an exponential digital revolution, and our own company has continued to change significantly and profitably. Importantly, we are working to promote our quality journalism in the age of generative AI, and are gratified that the most enlightened leaders in the industry appreciate the commercial and social value of that content.
“Separately, to that end, we have this week extended our existing partnership with Google.”
Thomson noted that News Corp has gone from advertising accounting for the majority of its revenue just a decade ago, to it making up just 8%.
“I should repeat that number, 8 per cent, and half of that figure is now digital advertising, so the character of the company has fundamentally changed,” he said.
News Corp’s chief financial officer Susan Panuccio agreed with this sentiment, explaining that “print advertising trends were noticeably weak across all markets”. Panuccio declined to share details of the deal struck with Google, only to note “the financials were consistent” with the previous deal struck in 2021.
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Nathan Jolly is the Deputy Editor of Mumbrella. He joined the team in July, 2023.
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