Perplexity, the AI search engine, is bringing on more media partners, including the LA Times, Adweek, and Mexico News Daily, as part of an expanded publisher program. The AI search company's expansion comes amid ongoing debates about AI's role in news distribution and content rights.
Key Points:
- Perplexity adds the LA Times, Adweek, and over a dozen other publishers to its revenue-sharing program.
- Participating publishers share ad revenue and gain metrics to track their content's performance.
- Despite the expansion, some media staff weren't informed of the partnerships, adding to publisher tensions.
- Perplexity's practices have faced criticism, including accusations of plagiarizing paywalled content.
The program offers publishers a share of advertising revenue when their content appears alongside ads on Perplexity's platform. Jessica Chan, head of publisher partnerships at Perplexity, emphasizes the company's commitment to factual reporting, stating, "We would not be able to serve factual, valuable answers without news organizations continuing to report on different topics."
However, when you zoom out, the bigger picture reveals a media industry at a crossroads. While some publishers view AI partnerships as potential new revenue streams, others are taking legal action. The New York Times recently sent Perplexity a cease and desist letter, while Dow Jones and the NY Post are pursuing lawsuits over what they term a "content kleptocracy."
These developments come as Perplexity faces scrutiny over its content handling practices. Earlier this year, Forbes accused the company of plagiarizing paywalled content, and Wired reported instances of inaccurate content paraphrasing. Despite these challenges, Perplexity claims significant growth, with CEO Aravind Srinivas reporting an increase from 2.5 million to 20 million daily queries over the past year.
The company's approach to transparency has also shifted. While previously disclosing "multiyear" deals with "double-digit" percentage terms, Perplexity now keeps financial specifics private. This comes as the company reportedly seeks $500 million in funding at a $9 billion valuation, despite modest annual recurring revenue of about $50 million as of October.
As traditional media and AI companies continue to navigate this complex landscape, these partnerships could shape the future of news distribution and consumption. The success or failure of Perplexity's publisher program might influence how other AI companies approach content partnerships and how publishers evaluate their relationships with AI platforms.