The partnership and fee
The $16 million is paid out in quarterly installments of roughly $4 million, which Dotdash Meredith contains within the licensing part of its monetary studies. The part additionally contains different licensing income, reminiscent of 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.
Many of the offers that OpenAI has struck with publishers are structured round two parts, based on a leaked pitch deck obtained by ADWEEK in Might. Publishers obtain a hard and fast fee based mostly on the worth of their archival content material and a variable fee based mostly on how typically their content material seems in OpenAI merchandise.
The $16 million represents the fastened fee, however Dotdash Meredith has not acquired—and due to this fact has not but reported—its variable fee. Consequently, the scale of the whole annual fee will nearly actually be larger.
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 reinforce D/Cipher, the contextual ad-targeting device Dotdash Meredith launched in Might 2023.
In its most up-to-date earnings, Dotdash Meredith reported its third consecutive quarter of double-digit digital promoting development.
