AI Licensing Boosts Publisher Revenues
Key Questions
What recent AI licensing deal did USA TODAY make with Perplexity?
USA TODAY secured a deal with Perplexity covering content for over 200 markets. This builds on their Q1 licensing wins with Meta and Microsoft, where AI revenue exceeded ad revenue and boosted adjusted EBITDA by 45%.
How has AI licensing impacted News Corp's financials?
News Corp reported a 9% revenue increase to $2.19 billion in Q3, crediting AI licensing deals with Meta and OpenAI. They are in talks for additional AI partnerships amid ad market pressures.
What is Perplexity's significant deal mentioned in publisher revenues?
Perplexity announced a $400 million deal with Snap, setting new benchmarks for AI content licensing. This reflects Perplexity's pivot to paid subscriptions over ads, reshaping AI search monetization.
Why is AI licensing seen as a pragmatic revenue path for publishers?
AI licensing provides a new income stream exceeding traditional ads for some publishers like USA TODAY. It offers majors and independents a way to monetize content amid declining ad revenues, as seen in deals with Meta, Microsoft, and OpenAI.
How is AI affecting local media revenue streams?
Local advertisers spent $151.6 billion in 2025, but AI advertising threatens to disrupt these streams. Publishers are turning to licensing deals as a countermeasure to sustain revenues.
USA TODAY Perplexity deal for 200+ markets builds on Meta/MS Q1 wins exceeding ads (EBITDA +45%); News Corp Q3 +9% $2.19B hails AI deals with Meta/OpenAI, more in talks; Perplexity $400M Snap + $42.5M rev-share expands benchmarks; HIFI.DE agent-licensable feeds signal indie opps amid ad strains.