Google breaks its bargain with publishers | News Corp's '$250m' deal with OpenAI
And Matthew Scott Goldstein explains why Microsoft, Apple, Alphabet and Meta are undermining the publishers whose content forms the the founation of the open internet
Good morning, and welcome to your Future of Media newsletter on Thursday, 23 May, brought to you in association with the Cannes Lions International Festival of Creativity.
Your first reaction to Rishi Sunak’s surprise announcement outside Number 10 yesterday was probably: “Will no-one fetch that man an umbrella?”
But Press Gazette UK editor Charlotte Tobitt’s first response to me was: “Does that mean Section 40 abolition will be delayed again?!”
That’s the level of geekiness we operate at. We’ll be reporting on what the general election means for media policy and legislation in due course.
One major question will be the future of the Digital Markets, Competition and Consumers Bill, which seeks to rebalance the relationship between publishers and big tech and is close to getting royal assent.
Today we have two important comment pieces explaining why that relationship has become so dysfunctional and suggesting what we should do about it.
First Matthew Scott Goldstein has written another powerful analysis piece setting out why Alphabet, Microsoft, Meta and Apple are undermining publishers who create the content their businesses are based on.
David Buttle, outgoing director of platform strategy at the Financial Times, takes a closer look at Google AI Overviews - the generative AI-powered search product now being rolled out for all US Google users.
Broadly speaking, he says, the search giant is now taking the piss. He also explains how publishers should respond to a world where Google is taking their content and their advertising but not sending them any clicks.
Still on the subject of generative AI, News Corp is the latest publishing giant to “do a deal with the devil” and sign a licensing deal with OpenAI. The Times and Wall Street Journal publisher is selling content to train OpenAI’s large language model and show up in answers for ChatGPT users.
OpenAI’s attitude towards publishers seems to acknowledge both the value they create and their legal rights, whereas Google appears to be trampling over both.
You can read our full breakdown on where publishers stand on generative AI (suing or signing) here.
New from Press Gazette
Google AI Overviews breaks search giant’s grand bargain with publishers
David Buttle writes: “Just to clearly set this out: Google is using the access to publisher content which outlets have no choice but to give it – thanks to the gatekeeper position it holds in connecting us with audiences – to create a service which directly substitutes the use of our product. And then it is monetising that service through advertising, likely at the further expense of content creators.”
How media tech’s big four are harming publishers who power their world
Matthew Scott Goldstein writes: “The open internet thrives on content created by publishers. However, four tech giants – Alphabet/Google, Apple, Meta and Microsoft/OpenAI – are posing a significant challenge to these content creators.”
News Corp says OpenAI deal marks ‘beginning of beautiful friendship’
The Wall Street Journal, one of the titles included in the deal, has put a value on it of more than $250m over five years.
Previously on Press Gazette
Fears Google could down-rank publishers who decline to use Privacy Sandbox
GB News begins ‘formal legal process’ to challenge Ofcom rulings
Newspaper delivery group Newsteam finds growing profit in print
Relaunched Q magazine shut down in same week Loaded revival goes live
Future plc returns to growth in Q2 in latest sign publishers are turning corner
Our latest podcast
Podcast 71: Daily Mail CEO Rich Caccappolo on keeping journalism free
This episode includes excerpts from an interview between Press Gazette editor-in-chief Dominic Ponsford and Rich Caccappolo, CEO of Daily Mail publisher DMG Media. It also features media consultant Matthew Scott Goldstein. They talk about how to save journalism (and democracy) on the open web by adapting to Google’s plan to switch off cookies on Chrome.
Caccappolo also provides an update on DMG Media’s legal action against Google and reveals how his company is growing overall revenue in a tough market.
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