People Inc. Secures Strategic AI Licensing Deal with Microsoft Amid Google Traffic Decline

People Inc., one of the largest media publishers in the U.S., has sealed a significant AI licensing deal with Microsoft, marking a pivotal moment in the evolving landscape of artificial intelligence and content monetization. The announcement was made as part of parent company IAC's third-quarter earnings, where it was revealed that People Inc. will become a launch partner in Microsoft's publisher content marketplace. According to the agreement, People Inc. will benefit from a pay-per-use market, where AI players can directly compensate publishers for the use of their content on an a la carte basis. This innovative approach is expected to revolutionize the way content is monetized, with Microsoft's Copilot being the first buyer for the marketplace. The deal is People Inc.'s second AI agreement, following its earlier partnership with OpenAI last year. The financial details of the deal were not disclosed, but it is reported that the partnership is a significant endorsement of the publishing marketplace and the value of high-quality content in making AI systems more effective. People Inc. CEO Neil Vogel praised Microsoft for its commitment to paying for content to support its AI efforts, highlighting the company's dedication to creating value for both publishers and AI developers. The announcement comes as a welcome respite for People Inc., which has been struggling with declining traffic due to the rise of Google Search's AI Overviews. According to recent data, Google's AI-powered feature has been eating into the publisher's traffic, with a significant drop in engagement and revenue. The deal with Microsoft is expected to help mitigate this loss and provide a new revenue stream for the company. The market context for this deal is crucial, as it highlights the growing importance of content in the development of AI systems. As AI continues to advance, the need for high-quality, human-generated content is becoming increasingly apparent. This trend is expected to drive growth in the content monetization market, with companies like People Inc. and Microsoft at the forefront of this shift. People Inc. is one of the largest media publishers in the U.S., with a portfolio of brands that include People, InStyle, and Entertainment Weekly. The company has been at the forefront of the digital publishing revolution, with a strong focus on creating engaging content for its audience. The deal with Microsoft is a testament to the company's commitment to innovation and its ability to adapt to the changing landscape of the media industry. Looking ahead, the partnership between People Inc. and Microsoft is expected to have significant implications for the future of content monetization. As AI continues to advance, the need for high-quality content will only continue to grow, driving demand for innovative solutions like the publisher content marketplace. This deal is a significant step forward in the development of this market, and it is likely to have a lasting impact on the way content is created, distributed, and monetized. In conclusion, the deal between People Inc. and Microsoft is a significant development in the world of AI and content monetization. As the media industry continues to evolve, it is clear that high-quality content will play a crucial role in the development of AI systems. This partnership is a testament to the power of innovation and collaboration, and it is likely to have a lasting impact on the future of content creation and distribution.