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AI & Media

AI's influence on media companies is becoming increasingly significant, as highlighted by a recent $250 million deal between News Corp and OpenAI 1. Scott Galloway suggests that this partnership could serve as a lifeline for media companies struggling to find new revenue sources 2. He predicts a resurgence in mid-tier media companies, as large language models (LLMs) find value in their content, potentially leading to lucrative partnerships 2.

I wouldn't be surprised if they announce we have a new deal with anthropic or something and we're going to make 25, 50, and then it might go to 100 million and it's going to be 98 points of gross margin, which will quintuple their earnings.

--- Scott Galloway

This shift could significantly alter the media landscape, offering new opportunities for growth and innovation.

   

Revenue Growth

The potential for revenue growth in media companies through strategic content usage is substantial. Scott Galloway believes that companies with valuable, crawlable data will see a surge in stock value as they tap into high-margin revenue streams from LLMs 3. He cites Gannett and Yahoo as examples of companies that could benefit from this trend, predicting a bidding war for exclusive content rights 3.

I think the New York Times is being savvy and kind of playing the reluctant bride and is waiting for someone to come in and make them a big offer to be the exclusive provider.

--- Scott Galloway

This strategy could lead to significant financial gains for media companies willing to leverage their content strategically.