How Small Publishers Could Cash In Big on the AI Royalty Revolution: The Untold Power of Collective Licensing
AI royalties are finally on the table for small and midsize publishers.
Don’t credit OpenAI’s ChatGPT, credit corporate LLMs — enterprise RAG is what’s creating royalty revenue for publishers.
RAG — retrieval augmented generation — kicks in when a user (or system) prompts the LLM, which then pulls the relevant content from various sources to deliver the best answer.
Take Dow Jones’ Factiva, which now operates an AI-licensed content marketplace for enterprises. Over the last two years, it has been quietly expanding its licensing agreements for generative AI usage, with approximately 5,000 publishers from its 30,000-strong publisher network now opted in for this.
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