Google agrees $69 million Canadian news licensing deal

Google has committed $69 million to license news stories from Canadian media outlets, marking a significant shift in the landscape of digital content monetisation in Canada. The announcement came as part of a broader initiative to support news journalism amid ongoing challenges faced by traditional media companies.

Prior to this arrangement, Meta, the parent company of Facebook and Instagram, refused engage in financial negotiations and opted to block Canadian news content entirely. This approach was aimed at circumventing the financial obligations outlined in the Online News Act, which mandates substantial payments to the Canadian Journalism Collective (CJC) for the use of news content.

Under the terms of the agreement reached with Google, about 30 percent of a total $100 million earmarked for Canadian newsrooms will be allocated to broadcasters, with the remaining funds distributed among various news publishers. News Media Canada president Paul Deegan, speaking to Agence France-Presse, highlighted the significance of this deal, stating that the financial infusion would enhance the cash flow for Canadian newsrooms, enabling them to “produce more high-quality coverage of our democratic institutions.” The organisation advocates for major news broadcasters and publishers across Canada.

The tech giant gains access to “fact-based, fact-checked content our journalists produce,” as noted by Deegan. The funds will be distributed by the non-profit CJC, further demonstrating a collaborative effort to sustain journalism in the face of shifting advertising revenues.

In practical terms, publishers will receive approximately $13,798 for each journalist they employ. Smaller digital and print outlets stand to benefit even more, receiving $17,000 for each full-time journalist, as reported by the Canadian Broadcasting Corporation. This funding comes at a crucial time as many Canadian news outlets have struggled to remain viable in an environment increasingly dominated by tech companies like Google and Meta, which have siphoned off advertising revenues from traditional media.

The financial support provided by Google represents a significant step in the Canadian government’s ongoing effort to ensure that large technology firms compensate local news organisations for the utilisation of their content. As part of this agreement, Google has secured a five-year exemption from the stipulations of the Online News Act, a move that is being viewed with cautious optimism by industry stakeholders.

Source: Noah Wire Services