Key facts
- News Corp Australia's digital subscribers decreased to 1,162,000 from 1,166,000 in the past financial year.
- Advertising revenue for the news media division fell 2% to June 30.
- CEO Robert Thomson criticized AI models for profiting from News Corp's content.
- News Corp has existing commercial agreements with OpenAI and Meta.
- The company intends to pursue legal action against entities using its content without compensation.
News Corp has reported a slight decrease in digital subscriptions across its Australian mastheads, including The Australian, The Daily Telegraph, and the Herald Sun, with subscriber numbers falling from 1,166,000 to 1,162,000 during the last financial year. This marks a reversal of recent growth for the division as it shifts away from traditional print.
Overall, the company's news media unit, which encompasses publications like The Sun and The Times in London and the New York Post, experienced mixed results. Advertising revenue within this division declined by 2% for the year ending June 30. The financial results also accounted for costs associated with the launch of the California Post, an extension of the New York Post in Los Angeles.
During the release of the financial results, News Corp CEO Robert Thomson strongly criticized artificial intelligence models that he claims "pilfer and profit from our work." He stated that without journalists, authors, data, brands, and expertise, users would be exposed to "slimy sea of AI slop." Thomson affirmed that News Corp will pursue legal action against these entities and their clients, asserting they are in possession of stolen goods.
These comments emerge as media companies globally seek compensation for the use of their content by AI developers. News Corp already holds commercial agreements with OpenAI and Meta. The situation is further contextualized by the Australian government's proposed expansion of its news bargaining incentive, which aims to compel tech giants to compensate media outlets for their content, either through direct deals or increased levies.