Several major publishers are shifting towards generative AI to uncover new revenue methods.
- DMG Media, the owner of the Daily Mail, has invested in ProRata.ai, valuing it at approximately $130 million.
- The Guardian, Telegraph, and Sky News have secured licensing agreements with the AI firm ahead of its search engine launch.
- Concerns about the use of copyrighted content in AI models continue to mount among media outlets.
- ProRata.ai offers compensation to publishers, addressing industry worries about content usage without permission.
Several leading publishing groups are increasingly looking towards generative AI as a potential new stream of revenue. DMG Media, known for its ownership of the Daily Mail, has recently acquired a significant stake in ProRata.ai. This investment values the AI-focused company at approximately $130 million, reflecting its perceived potential in the rapidly evolving digital landscape.
In addition to DMG Media’s investment, prominent media players such as the Guardian, the Telegraph, and Sky News have entered into licensing agreements with ProRata.ai. These deals coincide with the company’s anticipated launch of its AI-powered search engine, positioning ProRata.ai as a significant player in the field.
The foray into AI is not without its challenges. Increasingly, media outlets express concern over AI models that use vast datasets, which include copyrighted content, without proper compensation. ProRata.ai seeks to alleviate these concerns by implementing a model that offers proportional compensation for the usage of publisher content, thus setting a potential standard for ethical content utilisation in AI.
The issue of unauthorised use of content is highlighted by lawsuits from major media entities such as the New York Post and Dow Jones, among others, who have taken legal action against companies like Perplexity AI and OpenAI. They argue that their content was used without permission, echoing the broader industry unease.
CEO of ProRata.ai, Bill Gross, has been vocal about the current practices in AI, stating, “Current AI answer engines rely on shoplifted, plagiarised content.” His firm’s approach offers an alternative by proposing a more sustainable and ethical model for content use in AI applications.
ProRata.ai’s traction in the industry is evident through similar licensing agreements with notable institutions like Time, Fortune, and The Atlantic. Moreover, their revenue-sharing model, which promises to share half of the revenue from subscriptions with licensing partners, adds another layer of appeal to potential collaborators.
This strategic move by DMG Media aligns with its history of investing in tech companies, albeit with varied success. Recent setbacks include significant valuation decreases for previous investments like the financial app Plum and legal tech firm Farewill. However, the promising prospect of ProRata.ai represents a calculated risk in the expanding realm of AI technology.
The strategic investment in ProRata.ai underscores a trend among publishers to harness generative AI technology while navigating ethical content use challenges.
