People Inc. Secures AI Licensing Partnership with Microsoft Amid Declining Google Traffic
People Inc., a prominent player in the U.S. media publishing sector and formerly recognized as Dotdash Meredith, has entered into a significant AI licensing agreement with Microsoft. This development was disclosed on Tuesday as part of parent company IAC’s third-quarter earnings report.
As part of this collaboration, People Inc. will act as a launch partner in Microsoft’s publisher content marketplace. This marks the company’s second venture into AI partnerships, following its earlier agreement with OpenAI.
Neil Vogel, CEO of People Inc., described the new marketplace as a “pay-per-use” framework, enabling AI companies to directly compensate publishers for utilizing their content in a flexible, “a la carte” manner. He commended Microsoft for its commitment to financially supporting publishers, noting that Microsoft’s Copilot will serve as the first customer for this marketplace.
“This partnership is a powerful affirmation of our value within the publishing landscape and highlights the importance of content in delivering high-quality AI solutions,” Vogel stated.
This announcement coincides with troubling news for People Inc., as it revealed a sharp decline in traffic from Google Search. For the first time, the company shared data indicating that Google Search, which once contributed 54% of its traffic two years ago, has plummeted to 24% in the last quarter.
Vogel differentiated this new Microsoft agreement from the OpenAI deal, which he described as an “all-you-can-eat” model. He emphasized that what matters to People Inc. is ensuring that their content is “respected and compensated appropriately,” although specific terms of the new deal were not made public.
Recently, Vogel has voiced concerns regarding AI companies that utilize media content without proper compensation. He specifically criticized Google, labeling it a “bad actor” for employing the same web crawler for both its search engine and AI features, effectively limiting publishers’ ability to block its access.
In response to the challenges posed by AI crawlers, People Inc. has employed technology from Cloudflare, which allows them to restrict unauthorized AI access. This strategy has prompted negotiations with multiple AI firms, with Vogel noting that discussions have advanced significantly since implementing Cloudflare’s solutions.
During IAC’s earnings report, it was also highlighted that People Inc. saw a 9% increase in digital revenue, totaling $269 million for the quarter, fueled mainly by performance marketing and licensing, which grew by 38% and 24%, respectively. The report also mentioned the acquisition of Feedfeed, a food-oriented media publisher and influencer network, further expanding People Inc.’s portfolio.
