People Inc., a major U.S. media publisher, has entered into an AI licensing agreement with Microsoft, marking a significant development in the tech industry. The partnership was announced alongside People Inc.’s third-quarter earnings report. Under this deal, People Inc. will be featured as a launch partner in Microsoft’s publisher content marketplace, with Microsoft’s Copilot being the first buyer for the marketplace.
CEO Neil Vogel highlighted the importance of this marketplace, describing it as a pay-per-use model where AI players can compensate publishers for content use on a selective basis. Vogel noted Microsoft’s commitment to paying for content to enhance its AI initiatives.
The agreement with Microsoft comes as People Inc. revealed a decline in Google Search traffic, previously a major source. The shift in traffic dynamics has led People Inc. to explore new partnerships and revenue streams, emphasizing the need for fair compensation for media content used by AI companies.
While People Inc.’s earlier deal with OpenAI followed a different model, Vogel expressed satisfaction with both approaches as long as content creators are acknowledged and remunerated for their work. Specific terms of the Microsoft deal were not disclosed.
This collaboration underscores the evolving landscape of AI-driven content consumption and the growing importance of fair compensation for media providers. As tech giants navigate these changes, partnerships like the one between People Inc. and Microsoft set a precedent for ethical AI content usage.
Source: TechCrunch