Curiosity Stream, a science-centric streaming service, has taken an unexpected turn by shifting its focus from providing content to its subscribers to licensing its original programming to AI companies. This strategic move may hold the key for the company's future growth and survival in an increasingly competitive market.
The streaming service, founded by Discovery Channel founder John Hendricks in 2015, initially generated revenue through subscription fees and original programming. However, with the rise of artificial intelligence (AI), Curiosity Stream has discovered a new lucrative business model: licensing its content to AI companies for use in training large language models (LLMs).
According to CEO Clint Stinchcomb, licensing generated $23.4 million through September, which is already over half of what the subscription business generated for all of 2024. This trend is expected to continue, with Curiosity Stream aiming to generate more revenue from IP licensing deals with AI companies than it does from subscriptions by 2027.
The company has partnered with nine partners, completing 18 AI-related fulfillments across video, audio, and code assets. The partnership has allowed Curiosity Stream to tap into the growing demand for high-quality content in the AI market, which is expected to drive significant revenue growth.
However, licensing content to AI companies also carries risks, including ongoing litigation related to intellectual property (IP) leverage by LLMs. Moreover, it's unclear how much and for how long hyperscalers will be willing to pay content companies. Nevertheless, Curiosity Stream's strategy has already yielded impressive results, with the company turning a profit in its fiscal Q1 2025.
As the streaming industry continues to evolve, other content-centric companies are likely to follow suit by exploring new revenue streams and building relationships with AI companies. The opportunity for licensing is growing, with Stinchcomb stating that there will be hundreds and even thousands of companies who will need video to fine-tune specific models for consumer and enterprise purposes in 2027.
Ultimately, Curiosity Stream's success hinges on its ability to balance its focus on original programming with the growing demand for AI-licensed content. If executed correctly, this strategy could position the company as a leader in the rapidly evolving AI market, driving significant growth and value creation for investors and subscribers alike.
The streaming service, founded by Discovery Channel founder John Hendricks in 2015, initially generated revenue through subscription fees and original programming. However, with the rise of artificial intelligence (AI), Curiosity Stream has discovered a new lucrative business model: licensing its content to AI companies for use in training large language models (LLMs).
According to CEO Clint Stinchcomb, licensing generated $23.4 million through September, which is already over half of what the subscription business generated for all of 2024. This trend is expected to continue, with Curiosity Stream aiming to generate more revenue from IP licensing deals with AI companies than it does from subscriptions by 2027.
The company has partnered with nine partners, completing 18 AI-related fulfillments across video, audio, and code assets. The partnership has allowed Curiosity Stream to tap into the growing demand for high-quality content in the AI market, which is expected to drive significant revenue growth.
However, licensing content to AI companies also carries risks, including ongoing litigation related to intellectual property (IP) leverage by LLMs. Moreover, it's unclear how much and for how long hyperscalers will be willing to pay content companies. Nevertheless, Curiosity Stream's strategy has already yielded impressive results, with the company turning a profit in its fiscal Q1 2025.
As the streaming industry continues to evolve, other content-centric companies are likely to follow suit by exploring new revenue streams and building relationships with AI companies. The opportunity for licensing is growing, with Stinchcomb stating that there will be hundreds and even thousands of companies who will need video to fine-tune specific models for consumer and enterprise purposes in 2027.
Ultimately, Curiosity Stream's success hinges on its ability to balance its focus on original programming with the growing demand for AI-licensed content. If executed correctly, this strategy could position the company as a leader in the rapidly evolving AI market, driving significant growth and value creation for investors and subscribers alike.
Curiosity Stream is literally killing it right now! 
They're already making more revenue from licensing their content to AI companies than they are from subs! That's like 50% of their 2024 sub business... WOW 
The fact that they've partnered with 9 AI companies and completed 18 deals across video, audio, and code assets is insane 
Mark my words, Curiosity Stream is about to become a household name 
And if you're not investing in them now, you're missing out big time 
. What happens when the AI models start making its own documentaries or something? 
I mean, I get it, revenue is key and all, but what about the quality of the content? Are they gonna sacrifice originality for a quick buck? 
But at the same time, it's like they're putting all their eggs in one basket - if hyperscalers start to crack down on IP leverage, it could be a major problem 
. Still, $23.4 million is a pretty cool chunk of change, and if they can keep that train rolling, maybe they'll actually make it work 
I'm loving how Curiosity Stream is adapting to the changing streaming landscape! Who wouldn't want to make more money by licensing their awesome content to AI companies? 
. And let's be real, who doesn't love the idea of watching humans get trained on massive language models using their favorite shows and documentaries? 
The risks are valid, but I think they're worth taking - it's all about diversifying and innovating! 
. but at the same time, there's some risk involved, like lawsuits over ip leverage 
. now it'll be interesting to see if other streaming services follow suit and try to get in on the ai action 
.
and if they're getting paid for it, then all power to them! just hope those AI models don't start producing their own spin-offs... 
.
can't wait to see how this all plays out 
I'm loving this new direction for Curiosity Stream! They're super smart to think outside the box (or in this case, the streaming service) and license their content to AI companies. It's like a win-win - they get paid handsomely and help shape the future of AI! 
. Like, what if those AI companies start copying their IP or something? 
! They're basically thinking outside the box and adapting to the changing landscape. Fingers crossed they can make it work 
!
by licensing its original shows to AI companies. It's genius, really. I mean, who wouldn't want access to high-quality vids for training LLMs? 
. What if these AI companies just take and use everything without giving Curiosity Stream any credit or compensation? 
It's like playing a game of musical chairs - will they be able to adapt and stay ahead in the ever-changing streaming landscape? 
if they think they can get away with using someone else's content without paying for it, though 
.