News Corp Scores $250M Deal With OpenAI Amid Google's AI Overviews Traffic Loss
News Corp has inked a lucrative deal with OpenAI, potentially generating $250 million by allowing ChatGPT's parent company to access its content. This move comes as digital publishers grapple with revenue losses and declining traffic due to Google's AI Overviews.
The multi-year agreement between News Corp and OpenAI is a significant shift in revenue strategy for digital publishers. It allows OpenAI to scrape News Corp's content, which could bring in substantial earnings. Meanwhile, many publishers are exploring ecommerce and cost-per-action deals to recover or boost revenue.
The impact of Google's AI Overviews has been substantial. Digital publishers have lost around 25% of their search traffic. High-profile brands like CNN have seen traffic reductions of up to 30%, while HuffPost and Business Insider have experienced losses nearing 40%. In response, publishers are considering direct advertising deals, pay walls, and micro marketplaces to generate revenue from ecommerce. Brands are also pursuing direct collaborations with publishers to enhance sales through innovative software technology and creative campaign expertise.
News Corp's deal with OpenAI signals a new revenue stream for publishers. Meanwhile, the impact of Google's AI Overviews necessitates strategic adaptations, with publishers exploring ecommerce deals and direct collaborations to offset traffic losses and maintain revenue.
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