Credit: Niklas Ohlrogge via Unsplash
Nine Entertainment has started doing deals with corporates needing content to feed their AI programs.
CEO Matt Stanton, briefing analysts on results for the half year to December, said the media group had been working behind the scenes improving the operating effectiveness of existing businesses.
“Our strategy is very much around premium content, and when you've got premium content of the quality we have, we're in good shape,” he said.
“There will obviously be some efficiencies coming through ...a bit of disruption as well.”
Nine had done a “couple” of deals with companies to use the content for AI work.
“One clear example of reimagining the use of Nine's content is evident as corporates look to fuel their own in-house LLMs with quality, reliable content in volume,” he said.
“On this point, we have already signed two Australian corporates as licensors of Nine's content into their own proprietary AI ecosystems, with a lot more opportunities to come.”
He said Nine had made significant progress on its own AI initiatives, focusing on both improving the operating efficiency of the business and the further commercialisation of proprietary content.
“Our own use of AI continues to gather momentum,” he said.
“We are through the establishment phase, democratising the usage of AI across the company, with the Gemini platform rolled out and being utilised daily by an increasing number of our employees.
“We are now focused on accelerating the redesign phase, driving efficiencies as well as growth in new products and new revenue streams.
“We are pleased with the progress we are making across customer support, sales, finance, automation, consumer engagement, content creation, and engineering.”
Nine is working to rebalance its businesses.
Stanton estimates 51% of revenue was sourced from growth assets, including Stan, 9Now and digital publishing.
Looking to the 2027 financial year, he estimates around 60% of revenue will be sourced from growth assets, adding in the higher-margin outdoor business from QMS and reducing reliance on broadcast.
“Whilst we are not motivated by scale alone, it is also an important outcome, enabling us to maximise the impact of our content and remain relevant in a fragmented media market,” he said.
“Moreover, as our business becomes more digital, we expand our ability to build and exploit the opportunities of our integrated consumer platform.”
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