In the rapidly evolving digital landscape, where the value of intellectual property and digital ownership is constantly debated, a groundbreaking development is unfolding that resonates deeply with the ethos of the cryptocurrency world. AI licensing is becoming a critical battleground for content creators, and a recent move by media giant People Inc. highlights the urgency and potential rewards for publishers. As digital assets and content increasingly shape our online experiences, understanding how traditional media navigates the complexities of AI monetization offers crucial insights for anyone invested in the future of decentralized content and fair compensation.
AI Licensing: A New Frontier for Publisher Content Monetization
People Inc., a prominent U.S. media publisher, has announced a significant AI licensing deal with Microsoft. This agreement positions People Inc. as a launch partner in Microsoft’s innovative publisher content marketplace, a move that signals a proactive approach to monetizing valuable digital assets in the age of artificial intelligence. The announcement, made during parent company IAC’s third-quarter earnings, marks People Inc.’s second major AI deal, following a prior agreement with OpenAI last year.
People Inc. CEO Neil Vogel described Microsoft’s new marketplace as a ‘pay-per-use market where AI players directly can compensate publishers for use of their content on, sort of like an ‘a la carte’ basis.’ This model contrasts with their earlier ‘all-you-can-eat’ deal with OpenAI, yet Vogel expressed satisfaction with both approaches, emphasizing that the core principle is that their work is ‘respected and paid for.’ While specific deal terms remain undisclosed, this initiative underscores a growing industry trend: publishers demanding fair compensation for their intellectual property, especially as AI models increasingly ingest vast amounts of web data.
The Alarming Impact of Google AI Overviews on People Inc. Traffic
The positive news of the Microsoft deal arrived alongside a stark revelation about the declining fortunes of People Inc.’s web presence. For the first time, the publisher shared data with investors illustrating how Google AI Overviews has significantly impacted its digital traffic. Google Search, which once accounted for a substantial 54% of People Inc.’s traffic two years ago, plummeted to a mere 24% in the most recent quarter. This dramatic drop highlights a critical challenge facing publishers as search engines integrate AI-generated summaries directly into results, often obviating the need for users to click through to original sources.
Neil Vogel has been vocal in his criticism of Google, labeling the tech giant a ‘bad actor’ for its practice of using a single bot to crawl websites for both its traditional search engine and its AI features. This dual-purpose crawling puts publishers in a precarious position: they cannot block the bot without risking a complete loss of visibility from Google Search, which still represents a considerable portion of their audience. This dilemma underscores the power imbalance between content creators and dominant tech platforms, a concern that resonates with crypto advocates championing decentralized alternatives and fair value exchange.
People Inc. Traffic: A Masterclass in Digital Adaptation
Despite the challenges posed by Google, People Inc. has demonstrated remarkable agility in adapting to the evolving digital landscape. The company has proactively leveraged technology from web infrastructure provider Cloudflare to block other AI crawlers from ingesting its content without permission. This strategic move has proven highly effective, as Vogel noted in September, stating that this action has pushed AI companies to the negotiating table. He reiterated these sentiments on the recent earnings call, confirming that blocking AI crawlers has been ‘very effective’ and ‘brought almost everyone to the table.’
This aggressive stance has not only helped secure deals like the one with Microsoft but also contributed to People Inc.’s overall digital growth. IAC reported that People Inc. saw its digital revenue increase by 9% to $269 million in the quarter, driven by strong performance in marketing and licensing, which grew by 38% and 24% respectively. This success story serves as a compelling case study for other publishers, demonstrating that proactive measures and strategic use of technology can create leverage in negotiations with powerful AI entities. The company also expanded its portfolio with the acquisition of Feedfeed, a food-focused media publisher and influencer network, further diversifying its content offerings.
Microsoft Copilot and the Future of Publisher Content
The agreement with Microsoft positions People Inc. at the forefront of a new era of content monetization, with Microsoft Copilot being the first buyer for the newly established publisher content marketplace. This endorsement from a major AI player like Microsoft is crucial, as it validates the intrinsic value of high-quality human-generated content in training and enhancing AI models. Vogel praised Microsoft’s commitment to compensating publishers, highlighting the symbiotic relationship where publishers provide the foundational data that makes AI truly valuable.
The emergence of structured marketplaces for content licensing signifies a potential shift towards a more equitable distribution of value in the AI ecosystem. For publishers, it offers a pathway to sustainable revenue streams beyond traditional advertising models, which are increasingly disrupted by AI. For the broader digital economy, it sets a precedent for how intellectual property rights can be upheld and monetized in a world dominated by artificial intelligence. This evolution mirrors the crypto community’s focus on verifiable ownership and fair compensation for digital assets, offering a glimpse into a future where content creators have greater control over their creations.
Conclusion: Charting a Course for Fair Compensation in the AI Era
People Inc.’s recent dealings with Microsoft and its candid observations regarding Google’s impact paint a vivid picture of the challenges and opportunities facing media publishers today. The strategic embrace of AI licensing, coupled with assertive measures to protect its content, positions People Inc. as a pioneer in navigating the complex intersection of AI and publishing. As the digital landscape continues to evolve, the demand for high-quality publisher content will only grow, making fair compensation an imperative. The proactive stance of companies like People Inc. is not just about securing individual deals; it’s about shaping a more sustainable and equitable future for all content creators in the AI era.
Frequently Asked Questions (FAQs)
- •What is People Inc.?
People Inc., formerly known as Dotdash Meredith, is one of the largest media publishers in the U.S., encompassing numerous well-known brands and digital properties. You can learn more about them on their Wikipedia page or their corporate site, IAC (parent company). - •What is the new AI licensing deal with Microsoft?
People Inc. has signed an AI licensing deal with Microsoft to become a launch partner in Microsoft’s publisher content marketplace. This allows AI players, including Microsoft Copilot, to compensate People Inc. on a pay-per-use basis for its content. - •How has Google AI Overviews affected People Inc.?
Google AI Overviews has significantly impacted People Inc. traffic, causing a drop from 54% of its overall traffic two years ago to 24% in the past quarter. - •Who is Neil Vogel?
Neil Vogel is the CEO of People Inc. He has been a vocal proponent of fair compensation for publishers in the AI era. - •How is People Inc. protecting its content from AI crawlers?
People Inc. utilizes technology from web infrastructure provider Cloudflare to block unauthorized AI crawlers, a strategy that has successfully brought AI companies to the negotiating table for content deals. - •What is the difference between the Microsoft and OpenAI deals?
The Microsoft deal is characterized as a ‘pay-per-use’ model within a marketplace, while the earlier OpenAI deal was described as an ‘all-you-can-eat’ model. People Inc. is satisfied with both, as long as content is paid for.