👉 Background: News Corp Australia owns a large group of news publications in Australia like The Australian, Herald Sun, The Daily Telegraph. Not to forget their majority stake in Realestate.com.au and a big chunk of Foxtel. And with the growth of online news media and social media, News Corp has been working through an "e-revolution."

👉 What happened: Over the past 3 months, News Corp Australia's revenue decreased by 6%, including a 12% decline in their news revenue. But the biggest threat to News Corp has been the growing impact of AI.

👉 What else: While the CEO of News Corp has been critical of AI companies in the past for not compensating news publishers, he seems to have changed tack. He's now running with the catchphrase that they'll be "wooing, not suing" AI companies.

What's the key learning?

💡If you can't beat them, then you may as well try to join them. We know that the business models of media companies has been challenged by the quality of AI, which use articles from major media publication to train their AI engines

💡And now, there are two opposing approaches to dealing with the existential threat of AI.

• Exhibit A: New York Times is suing OpenAI and Microsoft, asking for billions of dollars in damages.
• Exhibit B: Axel Springer, the owner of Business Insider and Politico, have signed a deal to make their content available to ChatGPT with certain conditions.

💡With OpenAI now worth over $100 billion and backed by Microsoft, which is worth over $4.5 trillion dollars, it's a hard fight to fight. This is why many media companies are watching News Corp's move with eagle eyes.

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