Gannett and McClatch drop AP

[TC Talks]

In the digital world, this seems more reasonable than if it were 1980...

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.”

[80sTalkRadioFan]

Maybe AP gets funding from Cumulus/Westwood One radio, since Westwood One offers AP Radio News to their affiliates. I think Bloomberg Radio also uses AP.

[TC Talks]

Maybe AP gets funding from Cumulus/Westwood One radio, since Westwood One offers AP Radio News to their affiliates. I think Bloomberg Radio also uses AP.

Radio is hardly a revenue source for the AP