AP Interview: Editorial direction, the future of newspapers, and those price changes

Barely a day goes by at the moment without a raft of stories on the financial crisis, the US election and... the Associated Press. The Associated Press's communications team have never been so in demand, and the venerated news agency is moving dangerously close to becoming the story rather than being the one that writes about it.

The Editors Weblog spoke to Tom Brettingen, Chief Revenue Officer and Senior Vice President, Sales and Marketing at the AP, to discuss bad publicity, editorial content, price structure, and editorial cuts at the agency.

EW: Have you been surprised at the reaction to the price structure changes?

TB: "Generally, and for most of the industry, what we were offering was much more content for less money and a broader license to use it. We expected people to be happy, and most people were happy, the people you are seeing in the news were people, as the economic situation got worse, who were expecting larger decreases in their rates."

EW: Why were these changes necessary?

TB: "In the beginning, the goal was not drastic rate cuts, it was more about content. We wanted to help newspapers find the content that was specifically right for them in their markets and keep rates flat in doing that. We did all the work to devise the specifics and as these discussions went on the situation in the market became a lot worse and the global economy got worse. So, now the pricing and packaging that we started off with has run into this buzz of newspaper challenges and general economic challenges and that's why you find today all the stuff in the news about us"

EW: Is the AP having the same financial difficulties as the rest of the industry?

TB: "If our customers, who are generally ad supported, are hurt by the challenges that all newspapers are facing, compounded by the global economy, then of course it affects us as well"

EW: Looking back, would you have done anything differently with regard implementing the price structure changes? Do you think communication was an issue?

TB: "Some of the clients found the new packaging unnecessarily complicated. We created one level that contained all of the Breaking News, and then separate to this we had additional levels, Premium vertical segments, such as Sports, Business, Lifestyle, Entertainment and Analysis. Our thinking was "Breaking News" would satisfy a lot of customers, but some of our clients with more specialized newspapers might want to buy additional sports and business. Breaking News did have a huge amount of sports and business, but some of it was separated into Premium categories, so only those newspapers that wanted it needed to buy it."

"If we had foreseen how much more difficult the economic situation was going to get, we probably would have jumped ahead farther and skipped some of the intermediate steps. Things were not great 2 years ago, but they weren't nearly as bad as they are now.

"I am sure that (sic: communication) was part of it.... We were making this brand new separation from Breaking News, which on its face seems straightforward enough. However, say you are looking at Sports; you get the baseball results and match report, but what about analysis and sidebars? We had that planned, but we didn't have it live in the new web platform, so newspapers hearing from us couldn't go immediately to the website and see what we were talking about."

"If we'd had more time to announce it so that we could have finished the programming so that the distinctions between Breaking News and Premium would be clearer.... yeah, we could have timed that better. We were racing to get the program built and explained so people could make their choices in time for 2009. Newspapers didn't have the ability to see the differences to Breaking and Premium, and that would be something we could have done better.

"There was a huge amount of communication, it just wasn't necessarily what everyone wanted to hear"

EW: What was AP's reaction to the business-wide and economic crisis?

TB: "Last week, as the economic situation worsened and newspapers wanted a further reduction in their pricings from us, we did two things, for the small percentages of newspapers that saw a price increase in 2009, that was called off, and then we decided to abandon the two tier model. We made it part of one package, so premium is available to everyone."

EW: What is in the future for the AP?

TB: "We are undertaking a major review of what we need to do beyond changes in 2009. That will be a wide-ranging review. There are some benefits to membership of the AP, you vote for the board, you have an ownership stake; however, maybe some newspapers would prefer to not support the co-op to that level. Maybe some newspapers would prefer to be a more straightforward customer and buy a small content package for less money. That will be something that we will be examining."

EW: Do you expect to increase prices after 2009 for US newspapers?

TB: "Unless something miraculous happens and turns things around, if newspapers get to where they need to go with much more success on the web, that is theoretically possible. But no, I don't see any rate increases in the foreseeable future."

EW: Why has the AP changed its tone in some AP copy? Some of AP's content is now quite opinionated, are you moving away from neutral ground?

TB: "It's an area that can be debated, but we are certainly not moving from a neutral position. We remain committedly neutral, but that doesn't necessarily mean you can't have a voice, it's a more distinctive voice. It's a different voice to that which we may have had on some of our content in the past, but there is no leaving the neutral middle ground in terms of political leanings. We are providing value to the reader, we don't go to the consumer of course: we're a wholesaler. However, if we don't interest the reader, our customers aren't going to find that much value in our content. It's not a decision to be outrageous, or voicing off... it was an incremental change to be a little more distinctive in the market place."

EW: Does the AP have any new projects or innovations in the pipeline?

TB: "If we're not going to have all the revenue that we've had in the past from US newspapers and, more than likely, a few US broadcasters, we need to replace that revenue. We have several initiatives to help us do that, and they will be in content areas. Any more detail would be premature at this stage."

EW: Do you expect staff cuts at AP? If so, can you confirm that these will not happen in editorial?

TB: "Its clearly a company where the expense is largely people, if you're going to reduce expenses, you've got to look there. We need to be sure that the cuts are done very carefully because damaging the product and damaging the quality of the product starts a spiral that we clearly have no intention of starting.

"There is no decision on not cutting editorial, but depending on the levels of cuts that is required, its unlikely that you could do that entirely without looking at where the majority of our expenses lie, which is news staffing"

EW: What do you see in the future for newspapers? What do you think they need to do to their business models?

TB: "If I had the secret potion I would get very wealthy in a hurry. There are lots of good ideas floating round out there and they almost all revolve around targeting users with information, content and services, not expecting a single product - be it print or web - to be fully satisfying to everybody you want to reach in your market. A lot of customization and niche kinds of products are the things on most peoples minds."

See also:

Exploring the content sharing model: Is this the future of the US newspaper industry?
Opinion: Is the AP threatening its own future?
US: AP suspends rate hike
US: More newspapers to drop AP
US: Tribune Co. to drop AP