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id="main" class="site-main" role="main"> <div class="article-wrap"> <article id="post-1447382" class="post-1447382 post type-post status-publish format-standard has-post-thumbnail tag-none observer_company-conde-nast observer_company-forbes observer_company-iac observer_company-microsoft observer_company-openai observer_company-perplexity-ai channel-business channel-artificial-intelligence channel-digital-media channel-media channel-technology nyo_person-aravind-srinivas nyo_person-andrew-lo nyo_person-max-li" data-post="" data-title="Is Perplexity’s Revenue-Sharing Model a Solution to Media’s A.I. Dilemma?" data-url="" data-page-url="/2024/08/perplexity-ai-revenue-sharing-publisher/" data-date="2024-08-22 13:28:42" data-date-iso="2024-08-22T13:28:42-04:00" data-author="Victor Dey" data-coauthors="Victor Dey" data-channels="Business, Artificial Intelligence, Digital Media, Media, Technology" data-piped-channels="Business|Artificial Intelligence|Digital Media|Media|Technology" > <header class="entry-header"> <div class="entry-teaser"> <a href="https://observer.com/business/" aria-label="Read more articles on Business">Business</a><span>  •  </span><a href="https://observer.com/media/" aria-label="Read more articles on Media">Media</a> </div> <h1 class="entry-title" itemprop="headline">Is Perplexity’s Revenue-Sharing Model a Solution to Media’s A.I. Dilemma?</h1> <h2 class="dek">Perplexity's Publishers' Program could shake up the publishing world.</h2> <div class="entry-meta nyo-social-comments nyo-social-comments-above"> By <span class="author" itemprop="author"><a rel="author" class="url fn n" href="https://observer.com/author/victor-dey/" title="View All Posts by Victor Dey">Victor Dey</a></span> • <span class="entry-date"><time itemprop="datePublished" datetime="2024-08-22">08/22/24 1:28pm</time></span> <svg aria-hidden="true" style="position: absolute; width: 0; height: 0; overflow: hidden;" version="1.1" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"> <defs> <symbol id="icon-envelope" viewBox="0 0 28 28"> <path d="M26 23.5v-12c-0.328 0.375-0.688 0.719-1.078 1.031-2.234 1.719-4.484 3.469-6.656 5.281-1.172 0.984-2.625 2.188-4.25 2.188h-0.031c-1.625 0-3.078-1.203-4.25-2.188-2.172-1.813-4.422-3.563-6.656-5.281-0.391-0.313-0.75-0.656-1.078-1.031v12c0 0.266 0.234 0.5 0.5 0.5h23c0.266 0 0.5-0.234 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The initiative comes at a critical time when accusations of content misappropriation have strained the relationship between A.I. companies and publishers. </span></p> <section class="wp-block-observer-newsletters observer-newsletters--in-content"> <form class="newsletters-block__container" method="post" action="#" id="newsletter-67424aaaa9e568.69968198" data-form="subscribe-newsletter" data-recaptcha-key="6LexvRggAAAAAF1HvCWrHtG4UAa7m0WIdyIgstAo" data-form-action="https://observer.com/newsletter-subscribe.json"> <div class="observer-newsletters__in-content-icon"> <svg fill="none" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 51 51" width="50" height="50"><path d="M18.124 15.961C23.25 8.783 30.096 4.967 33.682 7.305a4.04 4.04 0 0 1 1.013.97c0 .028 8.3 16.017 8.3 16.017l4.634 2.989a6.39 6.39 0 0 1 1.793 1.732c.472.684.798 1.45.96 2.253.161.804.154 1.63-.02 2.432a6.075 6.075 0 0 1-.995 2.24l-.209.291c-.977 1.355-2.475 2.288-4.17 2.598a6.827 6.827 0 0 1-4.883-.943L32.662 48.32c-1.095 1.285-3.197 2.564-5.792 1.059a3.834 3.834 0 0 1-1.15-1.093 3.63 3.63 0 0 1-.587-1.444 3.763 3.763 0 0 1 .008-1.55 3.85 3.85 0 0 1 .635-1.427l6.556-9.208s-15.5-1.174-15.557-1.196a3.812 3.812 0 0 1-1.35-.552c-1.842-1.19-2.502-3.688-1.865-7.035.573-3.082 2.2-6.572 4.564-9.914Zm29.349 19.182.208-.292c.334-.467.567-.992.687-1.545a4.09 4.09 0 0 0 .012-1.678 4.18 4.18 0 0 0-.665-1.555 4.407 4.407 0 0 0-1.239-1.193l-4.002-2.592-5.282 7.405 4.002 2.592a4.64 4.64 0 0 0 1.624.655c.581.114 1.18.119 1.764.013a4.65 4.65 0 0 0 1.634-.631 4.42 4.42 0 0 0 1.257-1.179Zm-20.03 9.809a1.96 1.96 0 0 0-.324 1.528c.108.53.433.998.904 1.3.472.302 1.05.413 1.608.31A2.158 2.158 0 0 0 31 47.23l7.42-10.405-2.983-1.93-.788-.06-7.205 10.117Zm7.832-12.009 5.757-8.072-5.491-10.657c-.533 2.993-2.091 6.55-4.582 10.04-2.49 3.49-5.386 6.18-8.108 7.758l12.424.931ZM18.188 31.66c2.768-.171 7.275-3.143 11.092-8.497s5.056-10.42 4.205-12.94a2.354 2.354 0 0 0-.877-1.185 2.55 2.55 0 0 0-1.44-.47c-2.746 0-7.42 2.989-11.347 8.497-2.212 3.099-3.823 6.34-4.263 9.175-.863 5.42 2.63 5.42 2.63 5.42Z" fill="#000"/><path d="M25.364 16.165a5.726 5.726 0 0 1 2.148.01c.708.14 1.38.412 1.976.8.11.073.204.166.276.272a.941.941 0 0 1 .14.73.947.947 0 0 1-.158.347.998.998 0 0 1-.285.263 1.047 1.047 0 0 1-.767.133 1.046 1.046 0 0 1-.364-.15 3.572 3.572 0 0 0-1.25-.503 3.648 3.648 0 0 0-1.355-.01 3.574 3.574 0 0 0-1.257.486c-.381.238-.71.546-.966.906s-.436.763-.528 1.189a3.152 3.152 0 0 0-.01 1.29c.086.427.26.834.51 1.197.25.363.574.675.952.92a.972.972 0 0 1 .382.48c.07.194.074.405.01.602a.969.969 0 0 1-.37.49 1.048 1.048 0 0 1-.601.186 1.026 1.026 0 0 1-.58-.165 5.305 5.305 0 0 1-2.01-2.363 4.999 4.999 0 0 1-.29-3.028 5.165 5.165 0 0 1 1.527-2.67 5.592 5.592 0 0 1 2.83-1.412h.04Zm-8.491-6.914h-.098c-.25 0-.493-.088-.679-.248a.95.95 0 0 1-.329-.617l-.782-7.234a.919.919 0 0 1 .21-.725c.083-.1.188-.185.306-.247a1.05 1.05 0 0 1 1.14.105.974.974 0 0 1 .36.668l.776 7.24a.933.933 0 0 1-.222.707c-.17.199-.414.325-.682.351ZM3.771 7.763c.149-.214.38-.363.644-.414.264-.052.538-.002.764.138l7.06 4.41a.974.974 0 0 1 .396.482.922.922 0 0 1 .014.611.969.969 0 0 1-.376.496 1.05 1.05 0 0 1-.613.182 1.07 1.07 0 0 1-.58-.155l-7.06-4.41a.961.961 0 0 1-.415-.622.928.928 0 0 1 .166-.718ZM1.61 19.54l8.214-1.406c.265-.045.538.011.759.158.221.146.372.37.42.622a.93.93 0 0 1-.166.723c-.154.21-.389.354-.654.4l-8.207 1.405h-.18c-.258.007-.51-.08-.703-.243A.933.933 0 0 1 .97 19.88a1.03 1.03 0 0 1 .646-.358l-.005.017Z" fill="#000"/></svg> </div> <div class="observer-newsletters__in-content-inner"> <header class="newsletters-block__header"> <h2 class="newsletters-block__title"> Sign Up For Our Daily Newsletter </h2> </header> <div class="newsletters-block__form"> <input type="hidden" name="action" value="subscribe_newsletter"> <input type="hidden" name="newsletters[]" value="newsletter-daily" id="newsletter-daily"> <div class="newsletters-block__fields wp-block-button"> <input class="newsletters-block__input" aria-label="Email Address" placeholder="Email Address" type="email" name="email" required=""> <button class="wp-block-button__link in_article_single_newsletter_button" type="submit"> Sign Up </button> </div> <p class="newsletter-block__success"> Thank you for signing up! </p> <p class="newsletter-block__error"></p> <p class="newsletters-block__disclaimer"> By clicking submit, you agree to our <a href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime. </p> </div> <a href="https://observer.com/subscribe/" class="newsletters-block__see-all in_article_single_newsletter_see_all_link"> See all of our newsletters </a> </div> </form> </section> <p><span style="font-weight: 400">Over the past few years, established media organizations, including <a href="https://observer.com/company/forbes/" title="Forbes" class="company-link">Forbes</a>, <a href="https://observer.com/company/iac/" title="IAC" class="company-link">IAC</a>, and Condé Nast, have all expressed worry that A.I. companies are scraping their content on the web without due acknowledgment or remuneration. Perplexity, which recently faced plagiarism accusations, is attempting to mend these relationships by offering a win-win scenario to publishers. “We structured this program to ensure we have a scalable and sustainable way to <a target="_blank" target="_blank" rel="noopener" href="https://www.perplexity.ai/hub/blog/introducing-the-perplexity-publishers-program" data-lasso-id="2585921">align incentives for all parties</a>,” <a href="https://observer.com/person/aravind-srinivas/" title="Aravind Srinivas" class="company-link">Aravind Srinivas</a>, CEO of Perplexity, wrote in a </span><span style="font-weight: 400">blog post</span><span style="font-weight: 400"> on July 30. “We appreciate the publishers who have joined us for this program and provided us with valuable feedback about how it should operate. We have always believed that we can build a system where the whole Internet wins, and this is just the first step.”</span></p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_1" id="observer_article_instream_mobile_1"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_1" id="observer_article_instream_dsk_1"></div> <p><span style="font-weight: 400">Among the program’s early adopters are TIME, Der Spiegel and The Texas Tribune, who will have access to Perplexity’s powerful APIs, allowing them to create A.I.-powered content solutions. In addition, these publishers will also receive a substantial portion of the advertising revenue generated whenever their material leads to an A.I. response on Perplexity’s platform.</span></p> <p><span style="font-weight: 400">With the industry divided between litigation and licensing deals, will other A.I. companies follow suit, or will the battle over content rights intensify?</span></p> <h3><b>The evolving role of A.I. in journalism</b></h3> <p><span style="font-weight: 400">Disputes about the applicability of A.I. appear in the process of its integration into the media sector. While helping provide straight and relevant answers to users’ questions and queries and enhancing user satisfaction, the technology also comes across as a menace to old-school media publishers who rely on web traffic and advertising revenue. </span></p> <p><span style="font-weight: 400">With the rise of generative A.I. chatbots that can compile information from webpages into a digestible blurb for the user, each response that does not send the consumers to the publisher’s website is a lost sale and lost readership. By offering a revenue-sharing model, Perplexity aims to address the contentious issue of IP rights and compensate publishers for using their content. Through the Publishers’ Program, the company claims that publishers will be paid at least a ‘meaningful percentage’ of the ad revenue. </span></p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_2" id="observer_article_instream_mobile_2"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_2" id="observer_article_instream_dsk_2"></div> <p><span style="font-weight: 400">However, this approach may “lead to conflicts of interest, as the potential for financial gain might lead to pressure from larger publishers to prioritize content that aligns with algorithmic demands over desired journalistic quality and integrity,” <a href="https://observer.com/person/max-li/" title="Max Li" class="company-link">Max Li</a>, CEO and co-founder of the decentralized A.I. platform OORT, told Observer. </span></p> <p><span style="font-weight: 400">“This will ultimately compromise independence similar to <a href="https://observer.com/company/openai/" title="OpenAI" class="company-link">OpenAI</a>’s revenue-sharing agreement with the Associated Press, where OpenAI offered a share of revenue to the AP in exchange for access to its content,” Li added. </span></p> <p><span style="font-weight: 400">In the recent past, the argument over using online content for training A.I. models has escalated to allegations of plagiarism and piracy. For instance, </span><span style="font-weight: 400">Forbes</span><span style="font-weight: 400"> requested Perplexity to cease using its material and threatened to sue the company for copyright infringement. The New York Daily News, Chicago Tribune, Orlando Sentinel, San Jose Mercury News and four other publications </span><a target="_blank" target="_blank" rel="noopener" href="https://www.theverge.com/2024/4/30/24145603/ai-openai-microsoft-new-york-daily-news-sue-copyright" data-lasso-id="2585922"><span style="font-weight: 400">recently sued</span></a><span style="font-weight: 400"> OpenAI and <a href="https://observer.com/company/microsoft/" title="Microsoft" class="company-link">Microsoft (MSFT)</a>, alleging that the two companies used their articles to train A.I. models without permission or compensation.</span></p> <p><span style="font-weight: 400">“Without revenue-sharing models, legislators may eventually be compelled by their constituents to enact laws protecting the economic interests of content owners, potentially mandating royalty payments for content used by A.I. companies,” </span><span style="font-weight: 400"><a href="https://observer.com/person/andrew-lo/" title="Andrew Lo" class="company-link">Andrew Lo</a></span><span style="font-weight: 400">, director of MIT’s Laboratory for Financial Engineering, told Observer. “Although this innovation might introduce additional complexity, it also seems promising and could reduce litigation—unless, of course, A.I. companies and publishers fail to agree on terms.”</span></p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_3" id="observer_article_instream_mobile_3"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_3" id="observer_article_instream_dsk_3"></div> <p><span style="font-weight: 400">As the media industry navigates these challenges, some organizations are bracing for long legal fights, while others opt for collaboration. <a href="https://observer.com/2024/05/openai-news-media-deal-list/" data-lasso-id="2585923">Recent partnerships between OpenAI and media outlets</a> like TIME and </span><span style="font-weight: 400">News Corp</span><span style="font-weight: 400"> have set an example for this collaborative approach.</span></p> <p><span style="font-weight: 400">Perplexity’s Publishers’ Program could shake up the publishing world by opening up new revenue streams and fostering collaboration between traditional media and A.I. technologies. </span></p> <p><span style="font-weight: 400">“New types of companies may very likely arise that use A.I. algorithms to automatically generate articles for publishers. These articles will be fake but optimized enough to have more chance of being referred to by the <a href="https://observer.com/company/perplexity-ai/" title="Perplexity AI" class="company-link">Perplexity AI</a> algorithm, resulting in more revenues for publishers,” Li said. “For financially strained newsrooms, the long-term success of such programs will depend on how effectively it impacts profit margins and its ability to satisfy publisher’ expectations.” </span></p> </p><div data-ad="1" class="ad-wrapper ad-top-margin ad-has-disclaimer ad-incontent ad-mobile htlad-observer_article_instream_mobile_4" id="observer_article_instream_mobile_4"></div><div class="ad-wrapper ad-top-margin ad-desktop ad-has-disclaimer ad-incontent htlad-observer_article_instream_dsk_4" id="observer_article_instream_dsk_4"></div> <img itemprop="image" src="https://observer.com/wp-content/uploads/sites/2/2024/08/GettyImages-2166077122.jpg?quality=80&w=970" alt="Is Perplexity’s Revenue-Sharing Model a Solution to Media’s A.I. Dilemma?" style="display:none;width:0;"> </div> <footer class="entry-meta"> </footer> </article> <div class="breadcrumbs"> <span class="before-text"> Filed Under:</span> <a href="https://observer.com/business/" aria-label="Read articles filed under Business">Business</a>, <a href="https://observer.com/artificial-intelligence/" aria-label="Read articles filed under Artificial Intelligence">Artificial Intelligence</a>, <a href="https://observer.com/digital-media/" aria-label="Read articles filed under Digital Media">Digital Media</a>, <a href="https://observer.com/media/" aria-label="Read articles filed under Media">Media</a>, <a href="https://observer.com/technology/" aria-label="Read articles filed under Technology">Technology</a>, <a href="https://observer.com/person/andrew-lo/" aria-label="Read articles filed under Andrew Lo">Andrew Lo</a>, <a href="https://observer.com/person/max-li/" aria-label="Read articles filed under Max Li">Max Li</a>, <a href="https://observer.com/person/aravind-srinivas/" aria-label="Read articles filed under Aravind Srinivas">Aravind Srinivas</a>, <a href="https://observer.com/tag/none/" aria-label="Read articles filed under none">none</a>, <a href="https://observer.com/company/conde-nast/" aria-label="Read articles filed under Conde Nast">Conde Nast</a>, <a href="https://observer.com/company/forbes/" aria-label="Read articles filed under Forbes">Forbes</a>, <a href="https://observer.com/company/iac/" aria-label="Read articles filed under IAC">IAC</a>, <a href="https://observer.com/company/microsoft/" aria-label="Read articles filed under Microsoft">Microsoft</a>, <a href="https://observer.com/company/openai/" aria-label="Read articles filed under OpenAI">OpenAI</a>, <a href="https://observer.com/company/perplexity-ai/" aria-label="Read articles filed under Perplexity AI">Perplexity AI</a> </div> <div class="next-container"> <ul> <li> <a class="more-from" 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