Reach CEO Piers North is positioning the publisher's Google AI content deal as a model for future LLM partnerships and has sent a cease-and-desist letter to OpenAI, escalating pressure on AI firms using its content without agreements.
TL;DR
- Reach's Google AI deal sets a framework for content licensing, with a two-year time stamp and paid access to Reach's UK and Ireland portfolio.
- Reach has seen over 100 million content scrapes in six months and is pushing for similar deals with other AI companies, including OpenAI.
- The deal aims to address referral traffic erosion and establish a value exchange for content used in AI features.
What happened
Reach, owner of Daily Express, Daily Star, and OK! Magazine, has struck a deal with Google for paid access to its news content for AI pilots. The deal, understood to have a two-year time stamp, allows Google to use Reach's content in experimental AI features while exploring audience engagement.
Reach CEO Piers North sees this deal as a model for future LLM partnerships and has sent a cease-and-desist letter to OpenAI, citing over 100 million content scrapes in the last six months. North emphasizes the need for consent and fair frameworks in content usage.
North highlights that Reach is in discussions with other AI companies like Amazon, Meta, and Microsoft, but is escalating actions against those not engaging, notably OpenAI.
Why it matters
This deal sets a precedent for content licensing in the AI industry, addressing the value exchange for content used in AI features. It could influence how other publishers approach AI partnerships.
For developers and startups, this highlights the growing importance of content licensing and the potential legal implications of scraping content without permission.
Investors should watch how this deal impacts Reach's revenue and the broader landscape of AI content partnerships. The success of this model could drive more publishers to seek similar agreements.
Key facts
- Reach's Google AI deal has a two-year time stamp, according to Digiday.
- Reach has seen over 100 million content scrapes in the last six months, per the publisher.
- Google's news AI pilot program includes over 200 publications globally.
- Reach is in discussions with AI companies like Amazon, Meta, and Microsoft.
- Reach has sent a cease-and-desist letter to OpenAI over content scraping.
- The deal aims to address referral traffic erosion and establish a value exchange for content used in AI features.
- Reach sees this deal as a model for future LLM partnerships.
- The deal's payment structure and duration are time-limited, with renewal conversations to be had later.
Context
The AI industry is grappling with how to fairly compensate content creators whose material is used to train AI models. This deal between Reach and Google could set a new standard for these agreements.
Publishers are increasingly concerned about referral traffic erosion as AI features change how users consume news. This deal is part of a broader effort to address these concerns.
The legal landscape around content scraping is evolving, with some publishers taking legal action to protect their content. Reach's cease-and-desist letter to OpenAI is part of this trend.
