Nine CEO confident new AI laws will deliver a ‘world of growth in publishing’ as network slashes costs
Nine Entertainment's chief executive, Matt Stanton, has said he expects new Australian media bargaining laws to fuel a "world of growth in publishing", even as the company pushes ahead with more than $160m in cost cuts over three years. The upbeat forecast comes as parliament passed revamped bargaining laws last week, paving the way for levies on global tech platforms that decline to strike commercial deals with Australian news outlets over the use of their journalism, a development Stanton believes will benefit Nine's publishing arm.
Stanton told analysts he expected platforms such as Google and Meta to contribute amounts similar to those under Nine's previous 2021 arrangement, and pointed to a "good pipeline" of AI deals, including a recent agreement letting Microsoft's Copilot access Nine's content. The comments accompanied full-year results to 30 June showing a net profit of $142m from continuing businesses, broadly flat publishing revenue, and a slight decline in streaming and broadcast revenue despite a record performance from Stan. Nine has announced redundancies at the Sydney Morning Herald and the Age amid weak advertising conditions, though the Australian Financial Review has been spared, and Stanton said the company was prioritising "growth assets" such as newly acquired outdoor media firm QMS over "structurally challenged" units.
- Nine CEO expects new AI/media bargaining laws to boost publishing growth
- Company cutting over $160m in costs, cutting SMH and Age jobs
- Nine posted $142m annual net profit; AFR masthead spared cuts
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Nine Entertainment is a large Australian media company that owns newspapers including the Sydney Morning Herald and the Age, as well as the streaming service Stan and television and radio businesses. Like other publishers, it earns money from advertising and subscriptions, and faces competition for advertising from global technology companies such as Google and Meta.
Australia’s media bargaining rules are designed to help news organisations negotiate payment when digital platforms use their journalism. The latest changes create a route to levies on platforms that do not make commercial agreements with Australian news outlets. AI companies are also negotiating access to publishers’ material, which can be used to provide answers or other services.
The issue matters because payments from technology and AI companies could become a source of income for publishers, while advertising conditions remain difficult. Nine is also shifting investment towards areas it sees as having better growth prospects, while cutting costs in parts of its business.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The new media bargaining laws represent an overdue correction to market imbalances, compelling tech platforms to fairly compensate publishers for content that generates their engagement and profits. At a time when traditional advertising has collapsed, these laws enable news organisations to negotiate sustainable revenue or face levies, allowing them to maintain quality journalism and newsroom capacity. Nine's confidence reflects real opportunities: platform agreements and AI licensing deals demonstrate that when regulatory frameworks establish fair negotiation grounds, markets can deliver revenue to sustain media.
The case against
Media bargaining laws, despite good intentions, risk entrenching large publishers' dominance, reducing market competition, and potentially raising consumer costs through higher platform fees. More fundamentally, they treat symptoms rather than causes: Nine's simultaneous announcement of substantial redundancies despite new revenue streams suggests these laws protect publisher profits rather than rebuild journalism investment. True sustainability requires publishers to develop direct reader relationships and diversified business models independent of regulatory-forced negotiations with tech platforms.