In a bold move that’s shaking up the media and tech worlds, People Inc., one of the largest media publishers in the U.S., has struck a groundbreaking AI licensing deal with Microsoft—just as its traffic from Google Search takes a dramatic plunge. This isn’t just another business deal; it’s a strategic pivot that highlights the growing tension between publishers and tech giants over the value of content in the AI era. But here’s where it gets controversial: while Google’s AI Overviews are reportedly hurting publishers’ traffic, Microsoft is stepping in with a model that actually pays publishers for their content. Is this the future of fair compensation in AI, or just a temporary band-aid? Let’s dive in.
People Inc., formerly known as Dotdash Meredith, announced the deal on Tuesday as part of its parent company IAC’s third-quarter earnings report. Under the agreement, People Inc. will become a launch partner in Microsoft’s publisher content marketplace—a platform CEO Neil Vogel describes as a ‘pay-per-use’ system where AI companies compensate publishers for their content on an ‘à la carte’ basis. This marks the company’s second major AI deal, following its partnership with OpenAI last year, which Vogel characterized as more of an ‘all-you-can-eat’ model. But which approach is better? And this is the part most people miss: the real question isn’t just about the model—it’s about whether publishers are finally getting the respect and payment they deserve for their work.
Vogel didn’t hold back in praising Microsoft for its commitment to paying for content, noting that Microsoft’s Copilot will be the first buyer in this new marketplace. ‘It’s a strong endorsement of the value of publishing and the content that fuels high-quality AI,’ he said. But here’s the kicker: while People Inc. is happy with either licensing model, the company has been vocal about its frustration with AI companies—particularly Google—that scrape content without compensation. Vogel recently labeled Google a ‘bad actor’ for using the same bot to crawl websites for both its search engine and AI features, leaving publishers with no way to block it without risking a significant drop in traffic.
To combat this, People Inc. has turned to Cloudflare’s technology to block other AI crawlers, effectively forcing AI companies to negotiate content deals. Vogel credits this strategy for bringing ‘almost everyone to the table,’ with more deals expected in the future. But this raises a bigger question: Should publishers have to resort to such measures to get paid for their work? And what does this mean for the future of content creation and monetization?
The timing of this deal is particularly noteworthy, as People Inc. revealed that Google Search’s share of its traffic has plummeted from 54% two years ago to just 24% in the past quarter. While the company’s digital revenue grew 9% to $269 million—driven by performance marketing and licensing—the decline in Google traffic underscores the urgent need for publishers to diversify their revenue streams and assert control over their content.
IAC also highlighted People Inc.’s recent acquisition of Feedfeed, a food-focused media publisher and influencer network, as part of its broader strategy to expand its digital footprint. But as the industry grapples with the rise of AI, the bigger question remains: Who will set the rules for how content is used and compensated in this new era?
What do you think? Is Microsoft’s pay-per-use model the future of AI licensing, or is it just a temporary solution? And should publishers take a harder line against tech giants like Google that scrape content without payment? Let us know in the comments—this is a conversation that’s just getting started.
