Generative Artificial Intelligence in the form of ChatGPT knocked at our doorstep in November 2022. Since there has been no looking back. Interestingly, newsrooms to have picked up Generative AI and claims to have begun to use this technology in some or other form. For instance, CNN does claim to use some forms of AI to support the engineering and product team to deliver journalism via user personalisations, recommendations, advertising offerings and an overall improved user experience. “When developing a compelling proposition for commercial partners, it is essential for media companies to align innovation with our core purpose around providing relevant and high-quality content to audiences. Much of this innovation lies in the usage of new technologies such as AI. At CNN International Commercial, we have used machine learning for many years to automate processes, understand and respond to audience behaviour, and power smart digital advertising such as the delivery of advertising.”Rob Bradley, senior vice president, CNN International Commercial (CNNIC), told BrandWagon Online. CNN Digital uses AI as a tool to surface themes and topics in articles. That then supports understanding of the content to assist with product development.
The Promise of Generative AI in newspapers
39% of newsroom executives believed that less than five percent of journalists in their newsroom were using ChatGPT or similar tools on a weekly basis, according to a recent report by market research firm Statista. Just three percent of respondents said that they thought half the journalists in their newsroom were using Generative AI tools weekly, though this could change as the prevalence and potential of these tools continue to grow. “We have been using AI for image creation for our print publication. We have automated translations and transcriptions to some level and are in the final stages of implementing tools that help us convert text to speech and speech into moving images and even videos,” Official spokesperson of the IndiaToday Group told BrandWagon Online.
In 2021, it was reported that The Wall Street Journal, started using Narrativa’s Natural Language Generation (NLG) services to automat. Another US based newspaper publisher, with over 200 daily outlets, Gannett plans to include generative AI in the system it uses to publish stories. However, it stated the process will include humans so that the technology can’t be deployed automatically, without oversight. The mood is similar in India. While Indian publishers have acknowledged that there is need to control spiralling cost, technology cannot be left on it own to function. “Ethical considerations, legal and copyright issues, and reader acceptance are some of the factors that contribute to this hesitation. Moreover, there are unknown challenges related to how search engines will rank content generated or modified by AI. As technology continues to advance and the benefits become more evident, we may witness wider adoption of generative AI in the media industry,” Puneet Gupt, COO, Times Internet, explained.
Fake news in today digital world is yet another area of concern. There is no doubt that the proliferation of digital has on one hand lead to the easy flow of misinformation, hence leaving content at the merch of technology may perhaps only lead to more confusion among readers. “It is possible for a trusted news brand to navigate this dilemma by remaining committed to the principles of journalism while exploring disruptive technologies. When incorporating AI into their offerings, news networks must ensure that it adds value to their brand portfolio and upholds the core ethics of journalism. By doing so, they can maintain their integrity and credibility in an evolving media landscape,” Sunil Sharma, chief product and technology officer, Network18 added.
Interestingly, companies such as CNN seems to have gone a step ahead, and have tried to utilise technology to drive revenue. “The growing use of generative AI is helping CNN International Commercial’s brand studio, create teams of content creators to automate some operational and previously time-consuming tasks from transcriptions and translations from our filmed interviews to reading online articles aloud to generating hashtags and helping with auto colour correction. This helps us make better content and increases the capacity of our studio, which works across 75% of our international advertising sales business,” Bradley explained.
According to industry estimates, globally CPM (cost per thousand impression) ads typically allow digital publishers to earn anywhere between $0.2 – $5.0 per thousand impressions. However, this depends on many factors including the website’s niche, traffic patterns, seasonality, and users. In India, publishers usually earn in the range of Rs 250-500 CPM from ads. The Indian digital advertising industry is predicted to reach Rs. 51,110 crore, on the back of a compound annual growth rate of 31%, by 2024, as per Dentsu’s latest report. The market currently is placed at Rs. 29,784 crore.
Technology=Revenue?
As more and more digital publishers go behind the paywall, one of the key way to survive the heat of competition is by serving personalised content. It is here that the industry believes that
predictive and analytical AI will aid in personalising content. “Generative AI will further enhance newsroom and editorial efficiencies. Personalised content creation combining predictive, analytical and generative AI is still a work in progress. This is due to the challenges and considerations, as mentioned earlier, which need to be addressed before publishers can fully leverage the potential of personalised content to drive subscription revenue effectively,” Sharma concluded. The online news subscriptions generated Rs 120 crore in 2022 primarily for premium and exclusive content, as per the latest finding by the FICCI-EY report. The report further estimated that digital news subscriptions will generate Rs 160 crore in 2023.
In 2020, media and communication services held the second-highest market share, representing 34% of global digital subscriptions. Overall, the market size of the digital subscription economy worldwide reached $650 billion in 2020 and is expected to reach $687 billion by 2025.
Moreover, findings from AOP and Deloitte released in March this year, show that publishers have been able to grow the number of subscriptions besides expanding into new regions. The 13% annual increase has been significantly aided by the rise in subscription revenue. While, display ad revenue stayed unchanged at 0.1%, video ad revenue decreased sat -1.9%, and sponsorship ad revenue declined by 24%. Interestingly, total digital payments for the same period increased by 4.4% to £637.7 million, largely on the back of more and more readers subscribing to content. Not to mention, subscription revenue rose 13%. The report further stated the news publishers or creators or original content must use the latest technologies and techniques to be competitive as digital broadcasting expands. This includes adapting content for mobile platforms, applying artificial intelligence (AI) for tailored interactions, and using data-driven insights to customise material to user preferences. According to Gupta of TIL, the global perspective on AI newsreaders varies. Some countries and media organizations have embraced AI newsreaders as a means to enhance news delivery and reach wider audiences. On the other hand, concerns have been raised regarding the potential impact on human journalists, the quality of news content, and the erosion of traditional journalistic values. “Governments and regulatory bodies are starting to explore policies and guidelines to ensure the responsible and ethical use of AI in news production. It is an evolving landscape, and the future of news reading and news anchors in India and globally will depend on the continued advancements in AI technology, societal acceptance, regulatory frameworks, and the ability to strike a balance between automation and human involvement in journalism,”he noted.