The media industry is in a state of flux, and a bold move by People Inc. just turned up the heat! The renowned publisher has signed an AI licensing deal with Microsoft, marking a significant shift in the AI content landscape. But wait, there's more to this story than meets the eye.
People Inc., a media powerhouse, has been grappling with the challenge of AI companies using their content without compensation. As AI assistants and chatbots become more prevalent, the issue of content ownership and payment is a hot topic. And People Inc. is taking a stand.
The deal with Microsoft allows People Inc. to join its publisher content marketplace, a platform where AI developers can access content for a fee. This is a stark contrast to the company's previous agreement with OpenAI, which was more of an unlimited buffet, according to CEO Neil Vogel. But here's where it gets controversial: Vogel believes that both models are acceptable as long as their content is respected and adequately compensated.
The announcement came as part of IAC's quarterly earnings report, which also revealed a concerning trend. Google Search's AI Overviews feature has been eating into People Inc.'s traffic, dropping from 54% two years ago to a mere 24% in the past quarter. This has prompted People Inc. to take action, and they've found an ally in Microsoft.
To combat the unauthorized use of their content, People Inc. has been blocking AI crawlers from accessing their site, except for Google's bot, which they can't block due to its significant traffic contribution. This strategy has been highly effective, with Vogel stating that it brought almost all AI players to the negotiating table.
The results speak for themselves: People Inc.'s digital revenue grew by 9% in the quarter, with performance marketing and licensing leading the charge. And with more deals in the pipeline, the company is set to make waves in the AI content space.
But the question remains: Is this the future of media and AI collaboration? Will other publishers follow suit, demanding fair compensation for their content? And what does this mean for the accessibility of information in the age of AI? Share your thoughts below, and let's spark a conversation about the evolving relationship between media and technology.
