News Corp Prioritizes Negotiations with AI Companies Over Content Use
News Corporation, the global media conglomerate, is engaged in advanced negotiations with artificial intelligence (AI) companies regarding the use of its content. Robert Thomson, the company’s global chief executive, stated that News Corp prefers negotiation over litigation to finalize deals. Thomson emphasized the need for agreements to combat content counterfeiters in the AI world and expressed hope that these negotiations would set global precedents beneficial for journalists and journalism.
OpenAI’s ChatGPT and Google’s Bard Chatbot Transform AI Landscape
OpenAI’s ChatGPT and Google’s Bard chatbot have rapidly gained popularity, signaling a new era in artificial intelligence. During the quarterly earnings briefing, Thomson specifically praised OpenAI and its chief executive, Sam Altman, for their contributions to the field. These advancements have sparked concerns among media companies regarding compensation for the use of their content to train AI products.
Divergent Approaches of Media Publishers towards AI-Powered Tech Companies
Media publishers have adopted different approaches to address the rise of AI-powered tech companies. Some publishers have opted to strike licensing deals, while others seek damages. The New York Times has filed lawsuits against OpenAI and Microsoft, potentially leading to substantial compensation. On the other hand, The Guardian has blocked OpenAI’s access to its content. The Associated Press has taken a licensing route, securing an agreement with OpenAI for access to its archive.
News Corp Sees Opportunities in AI-Produced Content
News Corp, led by media mogul Rupert Murdoch, acknowledges the potential of AI and its cost-saving benefits in content production. With a focus on digital streaming, the company now generates more than half of its revenue from digital sources. News Corp’s recent earnings demonstrate growth in its business information unit Dow Jones, digital real estate portals, and book publishing business. However, there was a decline in advertising revenue in the news media unit, primarily due to lower advertising income.
Australian Business Declines, Digital Subscriber Base Grows
News Corp’s Australian business experienced a 6% decrease in revenue attributed to lower advertising income. However, the company’s digital subscriber base in Australia witnessed a slight increase from 1.01 million to 1.05 million over the past year. Thomson emphasized the positive financial performance of News Corp, highlighting the benefits of the company’s strategic shift to digital and subscription revenues, away from volatile advertising revenues.
Analyst comment
1) Positive news: News Corp Prioritizes Negotiations with AI Companies Over Content Use
As an analyst, this move by News Corp to prioritize negotiations with AI companies is a positive step. It shows a willingness to find mutually beneficial agreements and combat content counterfeiters in the AI world. This could lead to global precedents that benefit journalists and journalism.
2) Positive news: OpenAI’s ChatGPT and Google’s Bard Chatbot Transform AI Landscape
The rapid popularity of OpenAI’s ChatGPT and Google’s Bard chatbot signals a new era in AI. As an analyst, this shows promising advancements in the field. However, media companies have concerns about compensation for the use of their content to train AI products.
3) Neutral news: Divergent Approaches of Media Publishers towards AI-Powered Tech Companies
Media publishers have taken different approaches (licensing deals, lawsuits, blocking access) to address AI-powered tech companies. As an analyst, it is a neutral observation of the various strategies adopted by publishers in adapting to the rise of AI.
4) Positive news: News Corp Sees Opportunities in AI-Produced Content
News Corp’s acknowledgment of the potential of AI and its cost-saving benefits in content production is positive. As an analyst, this aligns with the company’s strategic shift towards digital sources and can contribute to revenue growth.
5) Negative news: Australian Business Declines, Digital Subscriber Base Grows
News Corp’s Australian business experienced a decrease in revenue due to lower advertising income. However, the slight increase in the digital subscriber base shows some positive growth. As an analyst, there is a negative aspect to the declining advertising revenue, but the growth in digital subscriptions is a positive sign for the company’s shift towards digital revenues.
