Update on engagement with Global Digital Platforms

MARKET ANNOUNCEMENT



26 November 2021



Update on engagement with Global Digital Platforms
AUCKLAND, 26 November 2021: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) advises
that the New Zealand Commerce Commission (“NZCC”) yesterday registered an application
from the News Publishers' Association of New Zealand Inc. (“NPA”) on behalf of its members,
including NZME and certain other New Zealand news media entities, seeking authorisation
under the Commerce Act 1986 to collectively bargain with each of Google and Facebook (the
“Global Digital Platforms”) to negotiate for fair compensation to individual publishers for the
content they produce that appears on the Global Digital Platforms.
A copy of the NZCC's media release and the application will be made available on the NZCC
website.
A copy of the NPA’s media release is attached to this announcement.
As NZME disclosed as part of its Investor Day on 18 November 2021, NZME has been engaging
with Google and Facebook regarding them accessing and supporting NZME’s editorial content.
In terms of timing, NZME expects that receipt of authorisation, if granted by the NZCC, may
take some months. A provisional (interim) authorisation has also been sought, and that may
be quicker.
While NZME fully supports the NPA application, it is important to note that participation in the
arrangement proposed by the NPA is voluntary. Accordingly, while the NZCC considers the
application, NZME may continue to engage directly with the Global Digital Platforms (and even
if authorisation is ultimately granted, NZME will have full discretion to choose whether to
participate in the collective bargaining initiative or not).
NZME's direct engagement with the Global Digital Platforms is at a very early stage, and
outcomes in relation to NZME's direct engagement, the NZCC's decision on the NPA application
for authorisation, or any resulting collective bargaining (if that application is authorised) are by
no means predictable.

ENDS
Authorised by Michael Boggs, CEO.

For further information:
David Mackrell
Chief Financial Officer
T: +64 21 311 911
Email: david.mackrell@nzme.co.nz

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25 November 2021

NPA seeking permission for New Zealand media to collectively bargain with Facebook and Google
for fair payment for Kiwi journalism

The News Publishers’ Association (NPA) today filed an application with the Commerce Commission
seeking permission on behalf of its members, and all other independent New Zealand-owned media
organisations, to collectively bargain with global giants Facebook and Google to seek fair payment
for Kiwi journalism used on their platforms.

In Australia, a specific "bargaining code" has been introduced by law to help support the
sustainability of the Australian news media sector by addressing the bargaining power imbalances
between global digital giants, such as Facebook and Google, and Australian news businesses.

However, there is no such legislation in New Zealand, so the NPA is seeking permission from the
Commerce Commission for independent New Zealand news media to be allowed to collectively
bargain with each of Facebook and Google to try to address the same bargaining power imbalances
that exist in New Zealand.

General Manager of the NPA, Brook Cameron, says the NPA has filed this application, on behalf of
New Zealand's independent media, to seek approval for an initiative that should assist in achieving
fairer remuneration for them to support their sustainability and viability and, therefore, contribute
to greater diversity of views in New Zealand news and journalism that best represent and inform
New Zealand communities.

“These global tech giants have built businesses of unimaginable size and amassed their dominant
power using ‘free press’ on their platforms – news made and paid for by media companies.

While New Zealand media companies are investing in Kiwi journalism, Facebook and Google use
journalists' content for free, pay very little tax in New Zealand,* and are understood to consume the
majority of available digital advertising spend in New Zealand. Approximately only ten cents in every
dollar spent on digital advertising in New Zealand goes to New Zealand news producers that invest in
producing journalism and news content.** It’s a lose, lose, lose for New Zealand.

Together these two giants have revenue that is greater than New Zealand’s GDP.*** New Zealand
businesses face a huge power imbalance in trying to negotiate with them to pay fairly for Kiwi
journalists' content.

That’s why we are asking the Commerce Commission for permission to negotiate collectively to seek
fair payment for all independent New Zealand media organisations that choose to participate in this.
This is about taking steps to support our New Zealand media companies to keep investing in great
journalism to protect and grow a vibrant, thriving Kiwi media sector because that is critical to a
healthy democracy.

The global pandemic has once again highlighted the critical role of New Zealand journalism as Kiwis
turn to their trusted sources for news. At the same time our media companies have been investing

to fight the ‘fake news’ on social channels that have threatened to undermine our country’s
collective response to keeping New Zealanders safe from the virus.

Since the start of the pandemic the global platforms have significantly increased their market
capitalisation.**** We are seeking an avenue to negotiate for fair payment, in the same way that
media organisations in Australia have been provided the ability to negotiate with the digital
platforms. "

The application is being made on an "opt in" basis, with it open for NPA members, and other
independent New Zealand owned media organisations, to choose to participate in the collective
bargaining group should it be approved by the Commerce Commission. The NPA invites any
independent New Zealand-owned media organisation to register their interest in joining this, should
it be approved, by emailing hello@npa.co.nz.



END
* https://www.nzherald.co.nz/business/why-taxing-big-tech-companies-is-
tricky/NYYKDQJ5OLVHFAE76YDIR3ZBVY/
https://www.stuff.co.nz/business/121505796/google-and-facebook-pay-way-less-tax-in-new-
zealand-than-in-australia--and-were-paying-the-price
** Advertising Standards Authority data for 2020
*** https://public.flourish.studio/visualisation/7409873/
**** https://finance.yahoo.com/quote/GOOG/ https://finance.yahoo.com/quote/FB/
For further information contact:
Brook Cameron
brook.cameron@npa.co.nz
General Manager, News Publishers’ Association