However, Perplexity has faced criticism and legal threats from publishers like Forbes and Wired, who accuse the company of plagiarizing paywalled content and circumventing efforts to block its crawlers. Despite this, the company continues to drive modest traffic to publishers, including those who have attempted to block its bots. The New York Times has sent Perplexity a “cease and desist” notice demanding the company stop using the newspaper’s content for generative AI purposes.
Key takeaways:
- Perplexity, an AI startup, is expanding its Publisher Program, which shares revenue with media outlets when their content appears next to ads on its platform. The company now works with over a dozen global media titles, including the Los Angeles Times, Blavity, The Independent, and ADWEEK.
- Perplexity is also planning to scale its advertising efforts by expanding brand partnerships beyond the U.S. The company aims to grow its 12 current categories, increase brand collaborations, and extend its ad reach into global markets.
- Perplexity has faced criticism and legal threats from publishers like Forbes and Wired for allegedly plagiarizing paywalled content and circumventing efforts by publishers to block its crawlers, potentially depriving these publishers of billions in ad revenue.
- Despite the controversy, partnerships with AI companies like Perplexity could provide a much-needed revenue lifeline for media companies, particularly as AI continues to eat away at traditional search.