Complex negotiations ahead as AI and Media Companies explore future deals

After last week’s Andrew Olle media lecture, a panel of speakers continued the discussion about AI, copyright and other challenges being faced by broadcasters and publishers.

Proper compensation for original journalism, the importance of credible content, and the interest of AI companies in using audio content, were all discussed.

Moderator Hamish Macdonald asked the panel about the disruptions facing their media business models.

Following on from the main theme of her talk Alessandra Galloni said “the bottom line is that any tech company that trains their models or uses the hard work of journalists in any way, needs to compensate those news organisations.”

Panel members made a good point in discussion about this, making the comparison with the tech companies. “Are any of the tech companies giving away the intellectual property of their search engine algorithms or their AI model codes for free? They’re not, so why should they expect us to give away our journalistic IP?”

“Different news organisations are taking different approaches. Some are taking the legal route, where they have the financial means to do so, others are lobbying their governments to protect IP. That’s obviously been in the conversation here in Australia after the speech by your Prime Minister… who is pushing for that kind of compensation and protection of IP,” said Galloni.

ABC Managing Director Hugh Marks described journalism as “a real public good” that enhances Australia’s “informed democracy.”

“Information is powerful, especially when you’re making decisions about who’s going to govern the country,” said Marks.

Marks, SBS Managing Director Jane Palfreyman and News Corp Chairman Michael Miller discussed how AI companies want access to their content, wanting different things from different companies.

“As a public media organisation, we have an obligation to make sure that those models do have access to information that’s reliable, accurate, and trusted… there’s a delicate balance” for the ABC and SBS.

“We are in a disproportionate bargaining position… for some reason, these companies think they  should be able to take our IP… they can’t take water or land or goods or other things, but for some reason they seem to think that IP is a free thing that they can take.”

Michael Miller quoted figures used in Galloni’s speech that 10% of news consumers globally are using AI chatbots to get their news. That figure jumped almost 50% in one year, and that doesn’t even include Google summaries in search. “That’s nothing short of theft,” said Miller.

The Albanese government has put a timetable in place to draft legislation by the end of the year, so that IP protection and licencing deals have a basis in Australian law to “protect the value of trusted journalism.”

Palfreyman said, “from an SBS perspective, we are custodians of First Nations content, multilingual content, and multicultural content. That demands ethical, culturally safe, and appropriate treatment. So payment and permission matter.”

“We know that AI companies benefit financially from the information they’re currently taking from our platforms, and so if the value is there, there is a conversation to be had about how to compensate that value.”

Nine Entertainment has done a deal with Microsoft Copilot to include its content in AI search. Nine CEO Matt Stanton said details of the deal are confidential. The company is “open to doing deals,” that expose their Nine branded content to larger audiences and bring financial income to the company. “I think it’s a good deal for both sides,” he said.

Asked whether the 30 journalists made redundant from Nine newspapers would be replaced by AI, Stanton said it is a business decision in the face of falling advertising revenue and changing business models. “The announcement we made today, which is always a difficult one to do, is about reshaping our business to meet the continuing changes… It’s not just about journalism; it’s journalism, investment in tech, and investment in product as well. You have to invest in tech and product as well as people resources to compete with the global players…”

“There will be an AI impact in everything we do, on the cost side and on the revenue side as well,” but the cuts are not directly related to AI usage in journalism, according to Stanton. “We have to change our business models.”

The CEOs said that AI and tech companies do understand the value of original content and recognise its importance, but it is a matter of reaching the proper arrangements with them so that the value of original media content is properly compensated.

Most media companies are in discussions with AI companies to explore possibilities for the future. The ABC is currently talking to Anthropic. Hugh Marks said that one of the things Anthropic is interested in is access to ABC audio content, as well as the national broadcaster’s news and video content.

He told the moderator, ABC Radio’s Hamish Macdonald:

“They want access to the work that you and your colleagues are doing now and have done over generations. It’s the way that your information is presented, so audio content is something they really want… it’s the conversations and the way that information is presented, and that tells you a lot about AI…  It’s not just an informational tool, it’s a relational tool. They’re trying to make it seem natural and connected, I think that connection comes from radio a lot.”

The Australian media is walking a tightrope. Media Companies can’t wait too long while AI bots continue to steal their content, so they have to begin talks, but without AI legislation and enforcable copyright protections, Australian media companies are in a weak bargaining position. The industry continues to lobby governments and look for other strategies while talks continue.

Reporting & Picture: Steve Ahern

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