In a bid to address the growing concerns surrounding the use of its content by artificial intelligence (AI) companies, News Corporation is reportedly engaged in advanced negotiations rather than resorting to litigation, according to the company’s global chief executive, Robert Thomson.
Thomson's remarks, delivered during the company's quarterly earnings briefing, reflect the escalating concerns among media entities worldwide regarding fair compensation for their content utilized in training AI products.
Emphasizing News Corp's preference for negotiation over litigation, Thomson acknowledged the prevalence of content counterfeiting within the AI realm, while expressing optimism about the ongoing negotiations, which he described as being in an advanced stage.
"We are hopeful that again News Corp will be able to set meaningful global precedents with digital companies that will assist journalists and journalism, and ensure that [generative AI] is not fuelled by digital dross," Thomson remarked.
Amidst the evolving landscape of AI-powered technologies, various publishers have adopted differing strategies in response to the burgeoning presence of AI companies. While some opt for negotiating deals, others pursue legal recourse seeking damages.
Notably, The New York Times has filed lawsuits against both OpenAI and Microsoft, alleging unauthorized use of its content for training large-language model systems—a move that could potentially result in significant compensation for the media conglomerate.
In contrast, The Guardian has taken a preventive measure by blocking OpenAI's access to its content, underscoring the divergent approaches adopted by publishers in navigating the AI landscape.
Meanwhile, the Associated Press has adopted a collaborative approach by striking a licensing deal with OpenAI, granting access to a portion of its archival content.
News Corp, a prominent US-listed media conglomerate with holdings spanning across the US, UK, and Australia, including newspapers, book publishers, subscription television, and real estate advertising assets, has consistently signaled its optimism about leveraging AI-produced content to drive cost-saving initiatives.
Under the leadership of Rupert Murdoch, News Corp has witnessed a notable transformation, with more than half of its revenue now stemming from digital streaming—a significant departure from its traditional print-centric operations.
Despite facing challenges such as lower advertising revenue in its news media unit, News Corp reported a 3% revenue increase in the last quarter of 2023, propelled by growth in its business information unit, digital real estate portals, and rebounding book publishing business.
Thomson highlighted the company's sustained growth in both revenue and profitability, attributing it to the strategic shift towards digital and subscription-based revenue streams, which mitigate the volatility associated with advertising revenues.
As News Corp continues to navigate the evolving media landscape, its engagement in negotiations with AI companies underscores its commitment to addressing the complexities arising from the intersection of technology and media content.
