OpenAI Is Paying Dotdash Meredith At Least $16 Million to License Its Content

The partnership and cost

The $16 million is paid out in quarterly installments of roughly $4 million, which Dotdash Meredith contains within the licensing part of its monetary reviews. The part additionally contains different licensing income, corresponding to funds from Apple Information+.

Within the seven quarters earlier than the OpenAI deal, Dotdash Meredith generated a mean of $25.5 million in licensing income. Within the two quarters following the announcement of the deal, licensing income has introduced in a mean of $29.75 million.

A lot of the offers that OpenAI has struck with publishers are structured round two parts, according to a leaked pitch deck obtained by ADWEEK in May. Publishers obtain a set cost primarily based on the worth of their archival content material and a variable cost primarily based on how typically their content material seems in OpenAI merchandise.

The $16 million represents the mounted cost, however Dotdash Meredith has not acquired—and subsequently has not but reported—its variable cost. Consequently, the dimensions of the entire annual cost will virtually definitely be increased.

Within the case of Dotdash Meredith, there’s additionally a 3rd part of the partnership. Along with the info licensing, the 2 events are additionally partnering to boost D/Cipher, the contextual ad-targeting tool Dotdash Meredith launched in May 2023.

In its most up-to-date earnings, Dotdash Meredith reported its third consecutive quarter of double-digit digital promoting progress.