AI lawsuits & what they tell us about the future of news media

Imagining AI’s impact on news media

What’s new: At the Digital Growth Summit, Natali Helberger from the University of Amsterdam presented an example scenario exploring how AI might reshape the news industry. She introduced “FutureNewsCorp,” a hypothetical publishing giant using AI to automate news creation and distribution, leveraging advanced AI tools for personalized, multi-format content delivery.

A future with one big publisher: FutureNewsCorp embodies a future where AI automates much of the content creation process, offering hyper-personalized news products while relying on major tech firms for its AI infrastructure. This raises questions about sustainability and ownership of the news production process.

This scenario raises concerns: Media organizations are increasingly reliant on major tech firms like Google and Microsoft for AI solutions, risking reduced media diversity and making these companies powerful industry gatekeepers. Regulatory efforts aiming to limit big tech often favor larger companies that can afford compliance, putting smaller media outlets at a disadvantage. AI and automation are also transforming the news workforce, replacing traditional roles with tech-driven positions, resulting in layoffs, more freelancing, and a less stable industry—ultimately threatening the quality and independence of news reporting.

How can publishers thrive in such a future?

• Creatively leverage AI for developing more engaging content and building stronger relationships with their audiences.
• Carefully choose technology that reduces reliance on big tech
• Invest in AI literacy for staff
• Engage in regulatory discussions and adapt their business models—either collaborating with tech firms or becoming more tech-oriented themselves.

US publishers claim copyright infringement against Perplexity AI

What’s new: Last week, the New York Times sent a cease-and-desist notice to Perplexity, demanding the AI startup stop using its content for summaries and citing copyright infringement. This week, a WSJ and New York Post lawsuit accused Perplexity of unauthorized content use and diverting traffic from their websites.

The dispute: NYT’s letter demands details on Perplexity’s access methods. Similarly, the WSJ alleges Perplexity ignored a prior legal notice and continues replicating full articles through its premium service.

Perplexity’s stance: The startup claims compliance and only indexes web pages for citations, not scraping. It has faced similar issues before but has tried revenue-sharing programs to appease publishers.

Industry context: The dispute is part of broader tensions as publishers combat AI tools that bypass paywalls. News Corp, owner of the WSJ, has sued Perplexity AI and signed a $250 million deal with OpenAI. The New York Times has sued both OpenAI and Perplexity AI.

Future outlook: These cases illustrate publishers’ strategies—some opt for partnerships like Hearst with OpenAI, while others, like NYT and News Corp, continue legal battles to safeguard their content. The outcome may define the future of AI-publishers partnerships, and potentially of copyright law.

Bloomberg Media’s Weekend Edition

The challenge: Bloomberg Media is working to reduce churn among its 740,000 subscribers by addressing lower engagement on weekends. With markets closed, the publisher seeks new ways to provide value and increase reader retention.

The solution, a weekend edition: Launched last week, Bloomberg’s Weekend Edition aims to explore the intersection of finance and culture, offering content tailored for weekend consumption. “We want to help our audience step back and see the bigger picture,” said Executive Editor Katherine Bell, emphasizing the need for more profound, contextual stories that align with weekend reading preferences.

Positive results expected: Julia Beizer, Chief Operating Officer, highlighted that even small increases in retention could yield significant revenue gains. “The Weekend Edition is designed to create a stickier subscription product by engaging audiences during traditionally low traffic periods,” Beizer noted, aiming to leverage a global audience with 40% of subscribers outside the U.S.

Future enhancements: The product includes a dedicated online section, narrated audio playlists, and two new newsletters to cater to varying reader preferences. Content will be freely accessible for the first two months, encouraging new readers to explore. “Our goal is to reach 1 million subscribers by mid-2025,” added Beizer.

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🗞️ What we’re reading

• Semafor reflects on its journey and growth over the past two years.
• Press Gazette analyzes how The Boston Globe’s paywall strategy has evolved.
• Commonwealth Beacon explores an AI-driven, hyper-local podcasting experiment in Melrose.