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Google backs publisher model as Apple considers AI-driven news payments

Created at 14 Aug · 10:41 AM1 source↑ Market-relevant
IN SHORT

Google supports its existing publisher payment model for news content, while Apple is exploring a new approach that would tie payments to the usage of journalism by its AI assistant. This comes as tech companies increasingly seek content for AI products.

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Key Numbers

5,500+European press publishers with Google licensing agreements
2,800+Publications covered by Google News Showcase

Who's Involved

Google
Tech platform backing established publisher payment model
Apple
Considering AI-driven payment model for news publishers
Siri
Apple's AI assistant that may use publisher content
OpenAI
Has existing agreements with major media companies
News Corp
Media company with agreement with OpenAI
Axel Springer
Media company with agreement with OpenAI
Google backs publisher model as Apple considers AI-driven news payments

↳ Why This Matters

The differing approaches by Google and Apple to compensating news publishers for content used in AI products highlight a critical juncture for the media industry as it navigates the integration of AI. The outcome of these negotiations will significantly impact revenue streams for publishers and the availability of reliable information for AI systems.

Key facts

  • Google supports its existing model for paying news publishers.
  • Apple is considering paying publishers based on the usage of their content by its AI assistant.
  • Google has licensing agreements with over 5,500 European press publishers.
  • Publishers receive compensation when their content appears in Google's AI Overviews and AI Mode.
  • OpenAI has separate agreements with major media companies.

Google has affirmed its support for its current system of compensating news publishers, even as Apple explores a new payment model tied to the usage of journalistic content by its AI assistant. Google views itself as the sole major tech platform with a structured, large-scale approach to paying publishers, maintaining licensing agreements with over 5,500 European press publishers and compensating them when their content, including snippets, is featured in Google's AI Overviews and AI Mode.

This development follows Apple's announcement of a new strategy for multiyear agreements with publishers to feed its revamped, AI-powered Siri, expected later this year. In contrast to the common practice of guaranteed fees in licensing deals, Apple is reportedly discussing payments based on the actual frequency of content usage by Siri, according to the Wall Street Journal. The iPhone maker has reportedly allocated a budget in the hundreds of millions of dollars for these publisher payments.

Google's approach emphasizes partnerships tailored to individual publishers and products, rather than a uniform payment formula. Apple's proposed model would more directly link the value of journalism to its utilization, potentially offering greater rewards for publishers whose work is frequently surfaced by Siri, but with less financial certainty than upfront guaranteed payments. OpenAI, meanwhile, has adopted a different strategy, entering into individual agreements with prominent media organizations such as News Corp and Axel Springer.

Frequently asked questions

Google utilizes a structured system of licensing agreements with over 5,500 European press publishers and compensates them when their content appears in AI Overviews and AI Mode.

Apple is considering a model where payments to publishers would be based on how often their journalism is actually used by its AI assistant, Siri.

OpenAI has pursued individual agreements with major media companies like News Corp and Axel Springer for their content.

What Happens Next

01Apple is expected to finalize its multiyear agreements with publishers for its AI-powered Siri.
02Google is continuing its separate commercial pilot with news publishers around AI.

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Cadence

How It Developed

Apple announced a new approach to publishers for multiyear agreements to supply news for an AI-powered Siri.
Apple is considering paying publishers based on how often their journalism is used by Siri.
Google stated it backs the established system for paying news publishers.
Google has licensing agreements with over 5,500 European press publishers.
Publishers are compensated when content snippets appear in Google's AI Overviews and AI Mode.
Google's partnerships are tailored to individual publishers and products.
OpenAI has individual agreements with media companies like News Corp and Axel Springer.

Sources

T1
Google backs publisher model as Apple considers price tag for newsCity AM

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