People Inc. Signs AI Licensing Deal with Microsoft Amid Declining Google Search Traffic

People Inc., a major U.S. media publisher, announced a new AI licensing agreement with Microsoft, becoming a launch partner in the tech giant’s publisher content marketplace. The deal follows People Inc.'s earlier partnership with OpenAI and comes as the company reports a sharp drop in traffic from Google Search, falling from 54% to 24% of its overall visits. CEO Neil Vogel highlighted the importance of being compensated for content used by AI systems and praised Microsoft’s commitment to pay for such use. The publisher also noted that blocking AI crawlers with Cloudflare technology has driven more AI firms to the negotiating table, while digital revenue rose 9% to $269 million in the latest quarter.

New AI Licensing Partnership with Microsoft

People Inc., one of the largest media publishers in the United States, disclosed a licensing agreement with Microsoft that positions the company as a launch partner in Microsoft’s newly created publisher content marketplace. Under the arrangement, Microsoft’s AI products, beginning with Copilot, will be able to access People Inc.’s content on an “a la carte” pay‑per‑use basis. The deal marks People Inc.’s second major AI partnership, following an earlier agreement with OpenAI.

CEO Emphasizes Compensation for Content

CEO Neil Vogel described the marketplace as a mechanism that ensures publishers are “respected and paid for” the use of their material in AI models. He praised Microsoft for its willingness to compensate content creators, calling the partnership a strong endorsement of the publishing marketplace and the value of high‑quality content for AI development.

Contrast with OpenAI Agreement

Vogel noted that the Microsoft deal differs from the OpenAI arrangement, which he characterized as an “all‑you‑can‑eat” model. While both agreements aim to monetize People Inc.’s content, the Microsoft partnership focuses on a usage‑based payment structure.

Declining Google Search Traffic

During the same earnings call, People Inc. revealed that traffic from Google Search, which had accounted for 54% of its visits two years ago, fell to 24% in the most recent quarter. The decline is linked to Google’s AI‑driven Search Overviews, which have reduced referral traffic to publisher sites.

Blocking AI Crawlers with Cloudflare

People Inc. has employed Cloudflare’s web‑infrastructure tools to block non‑search AI crawlers from accessing its sites. Vogel explained that this strategy forced many AI companies to negotiate content deals rather than scrape material for free. He described the approach as “very effective” and said it has brought “almost everyone to the table.”

Financial Performance and Acquisitions

The company reported a 9% increase in digital revenue, reaching $269 million for the quarter. Growth was driven by performance‑marketing revenue, up 38%, and licensing revenue, up 24%. Additionally, People Inc. announced the acquisition of food‑focused media publisher Feedfeed and its influencer network.

Outlook

Vogel indicated that further AI licensing agreements are expected as the marketplace expands and more AI firms seek compensated access to high‑quality content. The combination of new partnerships, strategic blocking of unauthorized crawlers, and continued revenue growth positions People Inc. to navigate the evolving AI landscape while addressing the challenges posed by reduced search traffic.