Time to rethink the AP model?

Now that Google has moved forward with the Associated Press to host the wire service’s stories — instead of linking off to newspaper sites — blogger Steve Boriss believes it’s time to rethink AP’s model. “Being a member of the AP made sense when papers were necessary middlemen for people to get their news — papers would pay the AP for electronically-transmitted stories, then reprint them and sell them for a profit to a public that had no better access to the freshest news,” he writes. “But now that the internet and Google News have essentially installed an AP News Terminal on the PC of everyone with broadband service, newspapers who are members of the AP are funding their own destruction.”

For sake of argument, imagine for a moment if your newspaper (or TV station for that matter) posts a fascinating, exclusive local story that happens to have national interest. Any good AP bureau worth its salt will pick up the story in a matter of hours and move it on the national wire. Then almost instantly, it’s hosted on Yahoo News, MSNBC, CNN and Google News, generating hundreds of thousands of ad impressions (or more) — and not a penny goes back to the originating publisher. In return, the member newspaper has access to a wide variety of national stories, but they’re already available all over the place online — which by extension reduces their value to local publishers.

Boriss also brings up the prickly issue of local broadcasters pulling local newspaper stories via the wire and posting them online (and occasionally vice-versa). Now that both mediums have expanded to the web, they’re direct competitors. And the local wire goes a long way to beef up the depth of content on a local TV site.

This is a complex issue and we’ve just scratched the surface here, but the CNN-Internet Broadcasting deal — which involves linking directly to partner sites instead of hosting their stories — offers an intriguing glimpse into a future of compensating local publishers commensurate to the value and popularity of their work. And as news continues to commoditize, original enterprise stories (which cost more to produce) will become increasingly valuable and demand a new approach to distribution.

-  Last week: CNN drops Reuters, says “content ownership is king”

12 comments September 3rd, 2007

Newspaper web revenue growth rate slowing

Online ad revenues for newspapers grew 19.3 percent in the second quarter, compared to 22.3 percent in Q1 and 35 percent in Q4. Meanwhile, print revenues slumped 8.6 percent in Q2, according to a report by the Newspaper Association of America. Print classifieds continue to take the hardest hit — real estate dropped 20.7 percent, auto fell 19.3 percent and recruitment slumped 18.5 percent.

Add comment September 3rd, 2007

Colbert’s cast sells for $17,200

Stephen Colbert’s wrist cast has sold on eBay for $17,200. Yes, the proceeds go to a good cause, all powered by the “wrist strong” movement.

1 comment September 3rd, 2007

GMA to launch third hour… on the web

Good Morning America is expanding to three hours every weekday, but the third hour will be online and mobile devices. Called Good Morning America Now, the show will be anchored by Chris Cuomo, and it will be available on ABC News Now’s digital services or partners, which include Comcast, Sprint, Verizon, Charter, RCN and MobiTV. “We are innovating,” said Jessica Stedman Guff, the show’s executive producer. “We are building on what is a very, very robust and revered brand that is a part of people’s lives. It’s very exciting to be able to extend that brand into the growth area in people’s lives, the Internet and mobile entertainment.” The show will feature original content and live news breaks — not just repurposed material. And the affiliates? “They welcome the extension of the franchise and they appreciate the fact that we are not asking them to give up something that’s working for them in broadcast,” she said.

1 comment September 3rd, 2007

ABC News Now turns anchor disaster into good PR

Remember Merry Miller, the woman who attempted to interview Holly Hunter on ABC News Now? The clip of her terrible interview has been seen over a million times, and many people told ABC that they could do a better job themselves. So ABC News Now sensed an opportunity and created a contest to find a “guest anchor” to substitute for Merry Miller. They’re down to three finalists, which you can watch here. Smart.

Add comment September 3rd, 2007