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AP Alters Pricing Structure, Increases Ease of Use


Turning over a new leaf

The Associated Press is restructuring the way AP content is packaged for newspaper members, along with the assessment formula to charge for it, reports MediaBuyerPlanner.

The move represents the most comprehensive change in the way AP content is sold in the history of the cooperative.

The new plan, called Member Choice, avails AP's English-language breaking news text to all members, a step that enables them to locate more news of local interest for markets, according to the company.

With the web-based AP Exchange delivery platform, newspapers can search this broader pool of content to find stories most locally meaningful to their readers.

In a pilot study of Member Choice this summer, a newspaper in Texas easily followed stories about an international company that is a major local employer.

Another paper, in a city facing an overcrowding issue in high schools, located stories from two other cities in other states facing the same problem.

Under AP’s previous distribution model, the newspapers would not have access to those stories.

"As newspapers focus more on local news, this total access to breaking news will greatly expand the amount of locally relevant content they can draw from," said Tom Brettingen, AP senior vice president for Global Newspaper Markets.

Member Choice users pay a basic assessment that gives them access to all AP state, national and international breaking news.

For additional fees, premium services featuring in-depth content in news analysis, business, sports, entertainment and lifestyles are also available.

Members can also buy stories on an a la carte basis.

Previously, AP sold its text in different-sized bundles, intended to serve the basic needs of small, medium and large newspapers, with bundles that included national and international news and content from the newspaper’s home state wire.

Most AP members will experience either a reduction in costs, or no change, from their current AP fees. The basic assessment will continue to be based on circulation, as it has in the past.

Member Choice is scheduled to take effect Jan. 1, 2009. It affects US newspapers, which are owners of the not-for-profit cooperative.

Broadcast and new media customers should also benefit from these changes, although specific programs have not been finalized.

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