People Inc. Partners with Microsoft in New AI Content Marketplace
AI
Microsoft
People Inc.
Publishing
Content Marketplace
IAC
Google Search
AI Licensing
8
Content Control
Media Hype
7/10
Real Impact
8/10
What is the Viqus Verdict?
We evaluate each news story based on its real impact versus its media hype to offer a clear and objective perspective.
AI Analysis:
While the deal itself isn’t radically disruptive, it signifies a key shift in strategy by a major publisher. The current media landscape is experiencing high hype surrounding AI, but this move demonstrates a more grounded, commercially-driven approach to navigating that landscape, and with the Google traffic declines, it’s a moment of strategic realignment.
Article Summary
People Inc., the media giant formerly known as Dotdash Meredith, has struck a deal with Microsoft to participate in the company’s publisher content marketplace. This move comes as part of IAC’s third-quarter earnings announcement and represents a key development in the ongoing debate around AI’s use of publisher content. Under the ‘a la carte’ model, Microsoft will pay People Inc. directly for the use of its content to fuel its AI efforts, particularly through Copilot. This contrasts with a previous agreement with OpenAI which Vogel described as an ‘all-you-can-eat’ model. The agreement is driven by People Inc.’s frustration with AI companies scraping content without compensation and its use of Cloudflare to block other AI crawlers, prompting negotiation. The move also comes amidst declining traffic from Google Search, which accounts for 24% of People Inc.’s traffic, highlighting the need for diversification. IAC reported 9% growth in digital revenue to $269 million, demonstrating the effectiveness of its performance marketing and licensing strategies.Key Points
- People Inc. is launching a content marketplace with Microsoft, offering its content for AI training and development.
- The agreement departs from a previous ‘all-you-can-eat’ model with OpenAI, establishing a pay-per-use structure.
- People Inc. is utilizing Cloudflare to block AI crawlers and negotiate fairer compensation for its content.