Associated Press overhauls pricing for US papers

Posted by Jean Yves Chainon on October 29, 2007 at 10:37 AM

The board of The Associated Press approved the overhaul of the AP’s pricing and packaging of news. Starting 2009, most US newspaper members will pay slightly lower fees, and will be able to buy stories individually.

Under AP’s new system, its core service will include all national, state and international breaking news.
Members have the option to add other services or to purchase stories individually (not available before).

Basic assessments charged to newspapers will still be based on circulation. According to AP, most member newspapers will end up paying lower fees, or see no changes. These changes in pricing could result in about $6-7 million less in annual revenue for the news agency.

"It's an amount we believe we can swallow, and clearly it would be beneficial to the industry during challenging times to have a little bit less to pay us," said Tom Brettingen, the AP's senior vice president for global newspaper markets.

The changes will take effect on Jan. 1, 2009.

Source: Yahoo News