In a bold move that’s set to shake up the media and AI industries, People Inc., one of the largest media publishers in the U.S., has inked a groundbreaking AI licensing deal with Microsoft, just as Google’s traffic to its platforms takes a nosedive. But here’s where it gets controversial: this deal isn’t just about partnership—it’s a direct response to the growing tension between publishers and tech giants over how AI companies use (and often don’t pay for) media content. And this is the part most people miss: while Google’s AI Overviews are hurting publishers’ traffic, Microsoft is stepping in with a pay-per-use model that could redefine how content creators are compensated in the AI era.
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 be a launch partner in Microsoft’s new publisher content marketplace—a platform CEO Neil Vogel describes as an ‘a la carte’ system where AI companies pay publishers directly for using their content. 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 model is better for publishers? That’s a question sparking heated debate in the industry.
Vogel praised Microsoft for its commitment to compensating publishers for their content, noting that Microsoft’s Copilot will be the first buyer in this new marketplace. ‘Being in the room with Microsoft is a strong endorsement of our value and the value of quality content in AI,’ Vogel said. Yet, the deal’s specifics remain under wraps, leaving many to wonder just how much publishers stand to gain.
The timing of this announcement is no coincidence. For the first time, People Inc. revealed that Google Search, which once drove 54% of its traffic two years ago, now accounts for just 24%. This dramatic drop comes as Google’s AI Overviews increasingly summarize content without driving users to the original source—a practice Vogel has openly criticized, calling Google a ‘bad actor’ for using the same bot to crawl websites for both its search engine and AI features. Is Google exploiting publishers, or is this just the cost of doing business in the AI age? The debate is far from settled.
To combat this, People Inc. has taken a stand by using Cloudflare’s technology to block AI crawlers from scraping its content without permission. This strategy, Vogel says, has been ‘very effective,’ forcing AI companies to negotiate content deals. In fact, he hinted that more partnerships are on the horizon, suggesting this is just the beginning of a broader shift in how publishers and AI companies interact.
IAC’s earnings report also highlighted People Inc.’s digital revenue growth of 9% to $269 million, driven by performance marketing and licensing, which grew 38% and 24%, respectively. The company also recently acquired Feedfeed, a food-focused media publisher and influencer network, further expanding its reach.
As the dust settles on this deal, one thing is clear: the relationship between media publishers and AI companies is at a crossroads. Should publishers demand payment for every use of their content, or is exposure enough? And what role should tech giants like Google and Microsoft play in shaping this new landscape? Let us know your thoughts in the comments—this conversation is just getting started.
