Publishers are increasingly exploring AI as a potential new revenue stream.
- The owner of the Daily Mail has acquired a significant stake in the AI startup ProRata.ai.
- ProRata.ai aims to reimagine publisher compensation whenever their content is used for AI outputs.
- Several major news organisations have entered into licensing agreements with the startup.
- The initiative addresses ongoing concerns regarding the use of copyrighted content by AI models.
In a significant move, the owner of the Daily Mail has invested in ProRata.ai, an innovative AI startup. This acquisition reflects the growing interest among publishers in leveraging generative AI technology to create new revenue streams. Various publishing groups, including DMG Media, which also owns Metro, the i newspaper, and New Scientist magazine, are evaluating such opportunities to ensure sustainable economic models in journalism.
ProRata.ai, founded earlier this year, seeks to provide fair compensation to publishers when their content is utilised to generate AI responses. The firm’s business model evaluates AI outputs to measure how much a particular piece of content contributes, with compensation distributed accordingly. This approach aims to mitigate the threat posed by real-time content scraping, which has raised alarms in the media industry.
High-profile legal actions have underscored the tension between AI firms and content creators. Lawsuits like those by the New York Post and Dow Jones against Perplexity AI, and the New York Times against OpenAI, showcase the industry’s challenges in ensuring that content usage is authorised and fairly compensated. ProRata.ai’s business strategy is designed to prevent such disputes by offering a revenue-sharing model with its partners.
In addition to its agreements with DMG Media, ProRata.ai has signed licensing agreements with other prominent media entities such as The Guardian, The Telegraph, and Sky News. These collaborations highlight the trust and interest major publishers have in the company, reinforcing its potential role as a cornerstone for future media-AI partnerships.
The company’s influence is further evidenced by its technology being licensed to major AI companies, including OpenAI and Anthropic. Moreover, notable media executives like Nicholas Thompson, CEO of The Atlantic, joining ProRata’s board underscore the startup’s appeal and strategic vision. The company plans to split subscription revenue with its licensing partners, aligning economic incentives between stakeholders.
The investment by DMG Media in ProRata.ai represents a strategic shift towards safeguarding publisher interests in the evolving AI landscape.
