Google Accused of "Stealing" Content by People CEO: Financial Impact and Market Implications
The CEO of People, Inc., Neil Vogel, has publicly accused Google of being a "bad actor" for using its crawler to support both the search giant's AI products and indexing websites for the Google search engine. This move has significant financial implications for publishers like People, Inc.
Financial Impact:
According to Vogel, three years ago, Google Search accounted for about 65% of People, Inc.'s traffic, but this number has since dropped to the high 20s. Additionally, as of several years ago, Googles traffic accounted for as much as 90% of People, Inc.'s traffic from the open web. This decline in traffic is likely due to Google's use of its crawler for both search and AI purposes.
Company Background and Context:
People, Inc., formerly Dotdash Meredith, is a leading digital and print publisher operating over 40 brands, including People, Food Wine, Travel Leisure, Better Homes Gardens, Real Simple, Southern Living, Allrecipes, and others. The company has seen significant growth in its audience despite the decline in Google traffic.
Market Implications and Reactions:
The accusation by Vogel highlights the ongoing tension between tech giants like Google and publishers over content ownership and usage rights. This issue is not unique to People, Inc., as many publishers have expressed concerns about Google's use of their content for AI purposes without proper compensation or attribution.
Industry experts note that this development may lead to increased scrutiny of Google's practices and potentially more stringent regulations on the use of publisher content for AI development. "This is a wake-up call for Google and other tech giants," said industry analyst, Sarah Tavel. "Publishers have been vocal about their concerns, and it's time for these companies to take responsibility for their actions."
Stakeholder Perspectives:
Vogel's comments reflect the growing frustration among publishers with Google's business practices. "We're not complaining; we've grown our audience," Vogel said in a statement. However, he emphasized that Google's actions are unfair and need to be addressed.
Future Outlook and Next Steps:
The implications of this development are far-reaching, and it remains to be seen how Google will respond to the accusations. Industry experts predict that this may lead to increased transparency and accountability from tech giants regarding their use of publisher content for AI purposes.
In a statement, a Google spokesperson said, "We work closely with publishers to ensure that our services benefit both users and publishers. We'll continue to prioritize transparency and fairness in our practices."
As the debate continues, one thing is clear: the relationship between tech giants like Google and publishers will require more scrutiny and regulation to ensure fair compensation and usage rights for content creators.
Key Takeaways:
People, Inc.'s traffic from Google Search has declined significantly over the past three years.
The use of a single crawler by Google for both search and AI purposes raises concerns about content ownership and usage rights.
Industry experts predict increased scrutiny and potentially more stringent regulations on tech giants' practices.
Sources:
Fortune Brainstorm Tech conference
AdExchanger
People, Inc. statement
*Financial data compiled from Techcrunch reporting.*