Four Newspapers to Drop AP Over Rates
by Joe Strupp - E&P
At least four more daily papers are planning to drop the Associated Press in the wake of new rates being announced, including The Spokesman-Review of Spokane, Wash, which is trying to cut ties without the required two-year notice.
"Our lawyers think that we don’t have to wait two years," said Steve Smith, Spokesman-Review editor. "By the end of this week, we will have nailed down all of the things we have to do to replace AP."
AP contract rules require a two-year notice before service can be dropped.
Smith said his paper would like to cut ties completely within 30 days, but will go along with the two-year time requirement if needed. He plans to inform AP before Sept. 1.
"What we are paying for is not cost-effective," says Smith, who notes that he would save about $32,000 per year under new rates, but still sees the nearly-$400,000 annual cost as too high. "The money we save will help me preserve local staff jobs."
Other dailies that have already given notice to AP are The Bakersfield Californian and The Yakima Herald-Republic and Wenatchee World, both of Washington. They joined The Post Register of Idaho Falls, which informed AP of plans to drop the service last week.
Sue Cross, AP senior vice president/U.S. media markets, called the number of papers giving notice "pretty small so far."
"The last time we had a big rate structure change was in 1984, we had cancellations then," Cross added, saying the news cooperative is not keeping count of those seeking to drop. "My impression is that it is a very low percentage. The positive feedback has outweighed the negative."
The recent decisions to drop AP service follow the planned AP rate structure change, which was announced in 2007 and takes effect in 2009. The rate change has already prompted complaints from numerous newspapers, including two groups of editors who wrote angry letters to AP to complain in late 2007 and early 2008.
Under current AP policy, each newspaper buys a package of general news created by AP based on that paper's location and circulation. The package usually includes breaking news, sports, business, and other national, international, and regional news relevant to the client's market, including its state AP wire.
Under the new structure, AP member newspapers will receive all breaking news worldwide (including items from other state wires), as well as breaking sports, business, and entertainment stories. In addition, a package of premium content — made up of five types of non-breaking stories including sports, entertainment, business, lifestyle and analysis — will be available at an additional cost.
When the new structure was announced in 2007, AP promised a combined savings of $5.6 million across newspaper member budgets, which increased to $14 million —and, finally, $21 million just days before the April annual AP meeting.
AP officials said member newspapers would begin to find out in July what their exact fees would be for 2009, which prompted the recent decisions and could result in other newspapers cutting their service before the end of the year.
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