Highlights
• Nine Entertainment (ASX:NEC) has agreed to let Microsoft Copilot reference masthead content.
• The arrangement covers journalism beyond paywalled previews.
• Copilot can display snippets, headlines and summaries with links to Nine’s sites.
• Financial terms and a separate AI Revenue contribution have not been disclosed.
AI-powered search and chat tools are eroding the referral traffic that has long driven readers to its news sites, even as Nine begins striking commercial deals to license its journalism to AI platforms in return for payment. Both trends sit against a broader Earnings shift already under way at Nine, away from free-to-air television.
A Business already in transition
Nine’s FY2026 results, covering the year to 30 June 2026 and released on 26 August 2026, show a company whose profit engine has moved well beyond free-to-air television. Group revenue from continuing operations rose 3% to $2.19 billion and EBITDA climbed 17% to $379 million, with net profit after tax up 11% to $147 million. Streaming arm Stan posted a fourth straight year of profit growth, EBITDA up 34% to $81 million on revenue of $569 million, with roughly 2.3 million paying subscribers after Stan Sport’s audience jumped following its Premier League rights deal. Outdoor Advertising business QMS, acquired during the year, added further momentum. Traditional television told a different story: Total TV revenue fell 9% to $1.03 billion and EBITDA dropped 12% to $134 million, with Nine booking a $404 million after-tax Impairment against soft advertising conditions. That widening gap between digital and broadcast performance is the backdrop for Nine’s AI moves.
Licensing journalism to Microsoft Copilot
Nine’s clearest AI move so far is commercial rather than defensive. On 3 July 2026, Nine announced what it called an Australian-first agreement letting Microsoft’s Copilot reference the full text of paywalled journalism from the Sydney Morning Herald, The Age, the Australian Financial Review, Brisbane Times and WA Today to ground its AI-generated answers. Copilot shows snippets, headlines and summaries, with links back to Nine’s own sites. Nine chief executive Matt Stanton called it ‘a win-win, delivering for users of AI while respecting copyright,’ and publishing managing director Tory Maguire said it would ‘unlock new revenue opportunities for our mastheads’.
Key Insights
The commercial logic is straightforward: as AI tools increasingly answer questions directly rather than sending users to publisher websites, licensing becomes a way to monetise journalism that might otherwise be scraped and summarised for free. The risk cuts the other way too: AI search and chat interfaces could further erode the click-through traffic underpinning digital advertising and subscription growth, even as one-off licensing payments offer a smaller, steadier offset.
