People Inc.’s Jon Roberts on the AI licensing boom – and the revenue lag

The AI licensing marketplace boom is creating new opportunities for publishers, but the revenue potential remains uncertain, according to Jon Roberts, chief innovation officer at People Inc. Speaking at the Digiday Publishing Summit in Vail, Colorado, Roberts highlighted the surge in AI content licensing platforms and the need for publishers to navigate this landscape carefully.

"There's a boom in companies that claim they will sell your content for money, and not yet a boom in the money from those deals," Roberts said. "So there seems to be more of these marketplaces every minute. But not all of them are going to be meaningful."

As tech companies rapidly develop AI licensing marketplaces for publishers' content, the number of deals is increasing, but the economic viability of these platforms is still largely unproven. Roberts emphasized that while the opportunities are there, publishers must be strategic in their approach to maximize revenue.

Roberts outlined several factors that could lead to significant revenue growth for People Inc. and other publishers. One key area is the ability of AI marketplaces to scale content distribution efficiently. By leveraging AI-driven algorithms, publishers can reach a broader audience and increase engagement, which could translate into higher ad revenue or subscription-based income.

Another factor is the potential for AI to enhance content personalization. By analyzing user data and preferences, AI-powered marketplaces can deliver highly targeted content, improving user satisfaction and retention. This, in turn, could lead to increased advertising spend from brands looking to connect with engaged audiences.

However, Roberts cautioned that not all AI licensing marketplaces are created equal. Publishers must carefully evaluate the platforms they partner with, focusing on those that offer transparent revenue models and a proven track record of success. It is essential for publishers to prioritize platforms that can demonstrate a clear path to monetization, as the current landscape is still evolving.

Roberts also discussed the role of publishers in shaping the future of AI licensing. By investing in data infrastructure and collaborating with tech companies, publishers can better understand the potential of AI to drive revenue growth. This includes developing strategies to monetize content in new ways, such as through data licensing or innovative ad formats.

In conclusion, while the AI licensing marketplace boom presents exciting opportunities for publishers, it is crucial to approach these platforms with a critical eye. Publishers must be selective in their partnerships and proactive in leveraging AI to optimize content distribution and monetization. As the industry continues to evolve, those who adapt strategically will be best positioned to capitalize on the potential of AI-driven revenue streams.

For more insights on this topic and the latest developments in media and marketing, sign up for Digiday newsletters.