OpenAI digital media company Dotdash pays Meredith at least $16 million a year to license its content. according to government financial documents reviewed by Adweek. We already knew this evolving partnershipbut we did not have a financial indicator. Now we do.
The actual fee may be higher than $16 million per year, as this only reflects the “fixed” component of the fee. The “variable” component will be calculated in the future, according to the last earnings call Dotdash is led by the chief operating officer and chief financial officer of Meredith’s parent company, IAC.
“If you look at Q3 2024, licensing revenue is up about $4.1 million a year. The largest share of this will be driven by the OpenAI license,” said CFO Chris Halpin. “So it’s a good proxy for the revenue that we recognize on a quarterly basis. And then the variable components will be calculated and recognized in the future.”
Dotdash Meredith will license its content to OpenAI to train ChatGPT, but the publisher will also use the AI company’s models to augment its internal ad targeting tool. As part of this arrangement, ChatGPT will display content and links from various publications under the Dotdash Meredith umbrella.
These publications include things you’ve already read, for example Eat and Wine InStyle, Better Homes and Gardenetc. Lifewire and Investopediaamong others. Dotdash Meredith also owns and publishes an eco-conscious site Treehugger and we everyone knows How big AI is for the environment.
As a side note, I’ve written for many Dotdash Meredith publications over the years. Can a lowly copywriter get a taste of that $16 million please? Actually, it doesn’t occur to him. Big payouts are for overpaid executives, not people who actually do what people click on. Fool me.
On the plus side, at least OpenAI is paying some companies to use the content now. The company was sued by everyone The New York Times for Comedians like Sarah Silvermanall accusing him of using the content without permission or without any payment.
Dotdash Meredith is the latest publisher to offer its content to AI companies to help create our glorious shared future where no one does anything but short messages on social media sites. The Financial Times It entered into a similar agreement with OpenAI. Book publisher HarperCollins also takes action.
