Many posts have dealt with news media. Newspapers are struggling and online publications also have problems.
This is a stunning development in American news media.
Gannett, the publisher of USA Today and the largest newspaper chain in the country with more than 200 outlets, announced it will stop using content provided by The Associated Press starting next week.
That was the first big shoe to drop. Then, The New York Times’ Benjamin Mullin and Katie Robertson reported that McClatchy — which owns about 30 newspapers, including the Miami Herald and The Kansas City Star — will stop using some AP services next month.
Let’s start with the Gannett part of this, and that starts with money.
The AP’s David Bauder reports, “Neither company would discuss how much Gannett has been paying to receive AP content.”
But my guess is we’re talking about millions. The move will save Gannett money, and at the same time, will cost the AP money.
However, Bauder added this might not be a crushing blow to the AP, writing, “In an earlier era, when fees from U.S. newspapers provided AP with virtually all of its revenue, such a decision would have represented a financial earthquake for the news cooperative. But AP has diversified its services with the decline of newspapers and U.S. newspaper fees now constitute just over 10 percent of its annual income.”
But what will the cost in coverage be for Gannett? The company will no longer be able to access the AP’s stories, photos and video from its coverage around the country and the world. The AP has journalists in every state, as well as nearly 100 countries.
