News Corp Australian digital subscriptions dip as CEO hits out at 'slimy sea of AI slop'

News Corp reported a small drop in digital subscriptions across its Australian news outlets, according to its annual results released Thursday. The company's internal data shows subscribers fell to 1,162,000 from 1,166,000 over the past financial year. The decline marks a change from recent years, when the division had consistently added digital readers while moving away from print.

Across the company's broader news media division, which includes London's Sun and Times and the New York Post, performance was mixed. Advertising revenue declined by 2% in the year ending 30 June. The division also absorbed costs associated with launching the California Post, a Los Angeles edition of the New York Post, led by Australian News Corp executive Nick Papps.

Chief executive Robert Thomson used the results announcement to criticize artificial intelligence models that "pilfer and profit" from media work. He said that without journalists and professional expertise, users would be "drowning in a slimy sea of AI slop." Thomson vowed to "pursue those pilferers" and warned that companies using their content are "patently in possession of stolen goods." News Corp already has commercial agreements with OpenAI and Meta.

The statement comes as the Albanese government pursues contested plans to expand its news bargaining incentive. Under the proposal, tech platforms would need to compensate news outlets either through commercial deals or by paying a higher levy.