In a surprising move, media powerhouse People Inc. has turned to Microsoft for an AI licensing deal, as it grapples with a significant decline in Google traffic. This deal marks a strategic shift for the publisher, which has been vocal about its issues with AI companies' content usage.
A Bold Step into the AI Arena:
People Inc., a leading media publisher, has signed a groundbreaking agreement with Microsoft, allowing them to license AI content. This news comes amid a challenging period for the company, as Google's AI Overviews have been impacting their search traffic. Once contributing to 54% of their traffic, Google Search now accounts for a mere 24%.
The AI Licensing Game:
This Microsoft deal is People Inc.'s second foray into AI licensing, following their OpenAI partnership. CEO Neil Vogel described the new marketplace as a pay-per-use platform, ensuring fair compensation for content creators. Microsoft's commitment to paying for content sets them apart, with their AI assistant, Copilot, being the first buyer in this new marketplace.
Controversy with AI Giants:
People Inc. has been critical of AI companies' practices, especially Google, which they accused of 'stealing content' by using a single bot for both search and AI features. However, the publisher has found a way to block AI crawlers from other companies, forcing them to negotiate content deals. This strategy has been successful, with Vogel stating that it brought 'almost everyone to the table.'
Financial Upswing:
Despite the Google traffic drop, People Inc. reported a 9% growth in digital revenue, reaching $269 million in the quarter. This growth is attributed to performance marketing and licensing deals, showcasing the company's resilience and strategic vision.
The Human Behind the Story:
Sarah Perez, a seasoned tech journalist, brings us this insightful report. With a background in I.T. and over a decade of reporting experience, she has covered the tech industry's evolving landscape. Reach out to Sarah at sarahp@techcrunch.com or via encrypted message for further insights and discussions.
