UPDATE 1-Australia says content laws already working after Nine-Google deal reports
(Recasts with Australian treasurer comment)
By Byron Kaye
SYDNEY, Feb 17 (Reuters) - Australia on Wednesday saidpromised laws forcing tech giants to pay media outlets forcontent had already succeeded after reports that publisher andbroadcaster Nine Entertainment Co Holdings Ltd agreedon a licensing deal with Google.
The Alphabet Inc owned company agreed to pay Ninemore than A$30 million ($23.25 million) a year for its content,two of Nine's newspapers reported, citing unidentified industrysources. The deal would be formally signed in the next twoweeks, the newspapers said.
A Nine spokeswoman declined to comment to Reuters. A Googlespokesman also declined to comment.
Nine would be the second major Australian media company toreach an agreement with Google just as the country's parliamentprepares to pass laws giving the government power to setGoogle's content fees.
On Monday, Nine rival Seven West Media Ltd said ithad reached a deal that local media reported would also involvethe U.S. company paying it A$30 million a year.
"None of these deals would be happening if we didn't havethe legislation before the Parliament," Australian treasurerJosh Frydenberg told reporters.
"This legislation, this world-leading mandatory code, isbringing the parties to the table. We have held the line andheld it strongly."
The Australian federal government has said it still plans toput the laws - which effectively force Google and social mediagiant Facebook Inc to strike deals with media companiesor have fees set for them - to a vote in the coming weeks.
Last year, seven smaller media companies, specialistwebsites and a regional newspaper, signed deals to have theircontent appear on Google's News Showcase platform, but thecountry's main metro outlets failed to reach agreements.
Several large domestic media players, including the localarm of Rupert Murdoch's News Corp - which ownstwo-thirds of Australian newspapers - have yet to announceGoogle deals. A News Corp spokesman was not immediatelyavailable for comment on Wednesday.
Media outlets around the world are trying to find a way tocompensate for a slump in advertising revenue, traditionallytheir main source of income, which has resulted in widespreadclosures.
In January, the Reuters news agency, a division of ThomsonReuters Corp, struck a deal with Google to be the first globalnews provider for Google's News Showcase.($1 = 1.2903 Australian dollars)(Reporting by Byron Kaye; Editing by Christopher Cushing)
