Associated Press to reduce newspaper fees

Posted by Simon Day on June 18, 2009 at 6:48 AM

The Associated Press has said that next year it will drop its fees for newspapers and broadcaster by a combined $45 million, PaidContent reported on Wednesday. The move was prompted by a small group of members who last year proffered their two-year cancellation notice because of the AP's fee structure and the continued decline of newspaper revenue. The AP hopes the fee reduction will relieve some of the economic strain felt by members.

Simultaneously, the news service is pursuing new sources of revenue and cost cutting measures. Tom Curley, the wire service's CEO, said the organisation predicts decreased revenue for 2009 and 2010 and will consequently look to cut 10 percent of its employees.

As the AP's newspaper members struggle to provide revenue, the organisation is looking online for a replacement source of income. The group currently holds deals with Google, Microsoft and Yahoo. However, the Google contract ends this year and Curley said that forging new licensing contracts was of utmost importance. The group is also developing its Digital Cooperative, a content distribution center that allows publishers an array of digital revenue models, including selling their content online. The AP is also developing its mobile influence, as it hopes to avoid portals and directly reach consumers.