In a bid to boost local independent news media, the Government plans to introduce a new law requiring digital companies to pay a fair price to reproduce New Zealand news content.
Broadcasting Minister Willie Jackson announced on Sunday the Government will create a new law to require big online digital companies such as Google and Meta to pay a fair price to New Zealand media companies for the local news content they host and share on their platforms.
The legislation will be modelled on similar laws in Australia and Canada and plans to act as an incentive for digital platforms to reach high-quality voluntary deals with local news outlets. The UK and the EU are looking to introduce similar legislation.
"It's not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it's only fair they pay," Jackson said.
"New Zealand news media, particularly small regional and community newspapers, are struggling to remain financially viable as more advertising moves online. So it is critical that those benefiting from their news content actually pay for it."
The legislation will be designed as a "backstop" to encourage companies to reach quality voluntary agreements, therefore, if the companies do good deals they can avoid the new law being used, Jackson said. But if an agreement is not reached, the legislation sets out processes for negotiations and mandatory bargaining.
Jackson said in Australia, similar legislation has never been used because companies have done voluntary deals to avoid it and in Canada, Google has reached agreements with more than 150 publications ahead of legislation coming in.
"We want to see fair deals for all the media players in Aotearoa and ensure that new companies in the future will have to come to the bargaining table. It's important to ensure a free and independent news media exists in Aotearoa and fair compensation for online media content is critical," Jackson said.
He said the decrease in media companies' income is having an impact on news creation with a significant decline in the number of journalists in the country, as well as a reduction in producing local news content.
"This move is also about helping to ensure we can keep producing New Zealand news and stories."
Warner Bros Discovery, the company that owns Newshub, supports the proposed legislation.
"For far too long, social media platforms like Google and Meta have profited off the hard work of local news outlets with no return," said Glen Kyne, Warner Bros Discovery's head of Networks for Australia, New Zealand and Japan.
"We're hopeful that this proposed legislation will bring these companies back to the table with an offer that's fair, given the calibre of reporting they've profited from.
"Allowing media outlets to collectivise without having to go through a Commerce Commission process drives quick action from a position of strength, enabling local new outlets to face off against some of the biggest tech companies in the world.
"The ball is now with Google and Meta to do the right thing."
