AI Is Paying for News, but at What Price?

Welcome to "The Media Front." News organizations like CNN have long relied on Google to drive traffic to their journalism. In a bid to get paid for their reporting, CNN has entered into a multiyear deal with Google, joining other publishers such as Axios and the Financial Times in Google's News AI program. Over 400 publications are participating worldwide, with Google compensating them for expanded content rights.

While this agreement presents a potential new revenue stream for publishers, it doesn't necessarily lead to increased control over how readers discover their content. In fact, recent developments have shown that news organizations and tech companies remain at odds over who determines how journalism is used. For instance, Meta was challenged on Friday regarding changes to its commercial terms, which some argued could allow the company to collect material from news websites for AI training without permission or payment. Meta has since removed the contested wording and clarified its stance.

Furthermore, publishers are grappling with a decline in search traffic. Pageviews from Google Search fell 34% between December 2024 and December 2025, and smaller sites saw an even steeper 60% drop in traffic over two years. AI-generated answers provide readers with an alternative way to access information without visiting news websites, contributing to these declines.

While Google's agreement with CNN grants it expanded rights to use the news network's journalism for experimental AI features, the specifics of which Google products will utilize this content, disclosed financial terms, and whether AI training rights are included remain unclear.

Sam Felix, CNN's senior vice president of strategic partnerships and business development, emphasized that the agreement would create new access channels for audiences while ensuring CNN is compensated for its intellectual property. This news comes just days after David Ellison's Skydance took control of CNN. Ellison prioritizes AI for the company, and the Google deal aligns with this strategy.

However, it remains uncertain whether Skydance played a role in the deal. For CNN, which is expanding its digital business under Mark Thompson, licensing offers an additional revenue source beyond advertising and subscriptions.

Google assures that its News AI program includes attribution and links to original reporting and has announced changes to make those links more prominent in AI-powered search products. This could help publishers reach readers who might not otherwise visit their websites. However, a licensing agreement does not grant CNN control over Google's broader search results.

Smaller outlets may lack the negotiating leverage of larger publishers like CNN or The Financial Times. The undisclosed financial terms make it unclear if payments can offset revenue losses due to declining search referrals. Chartbeat's data shows that while average weekly pageviews have fallen about 6%, internal traffic—readers moving between pages within the same website—has increased, indicating that readers still value content from news websites.

Nevertheless, publishers face two major challenges: obtaining compensation when tech companies use their journalism and finding reasons for readers to seek out news directly. Licensing agreements may address the first challenge but offer no guarantee of the second. Ultimately, CNN's new agreement with Google signals a step towards monetizing its journalism in the AI era, but its success will depend on more than just the size of the check. The network must find ways to attract and retain readers directly on its platform.