Four More Newspapers Intend To Drop AP Over Rates (Dinosaur Media DeathWatch™)

Editor & Publisher ^ | August 20, 2008 | Joe Strupp

[abb]

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."

Cross cited several positive responses from member newspaper groups, ranging from Cox Ohio Newspapers to Wick Communications of Arizona. David Goodwin, Cox Ohio assistant managing editor, stated: "We are doubly pleased with the new pricing plan. It exceeded our estimates."

Bakersfield Executive Editor Mike Jenner said he gave notice at the beginning of August, while Herald-Republic Editor Sarah Jenkins sent a termination letter on Aug. 11, claiming the new AP rate structure had been the cause.

Jenkins said she would have to pay between 3% and 7% more under the new rates set to take effect in 2009, while Jenner admits he would likely save 4%, but still does not want to pay it.

"My hope is that I can use it for a negotiating tool, this may give me some leverage," Jenkins told E&P. "But I don’t have high hopes of that. My plan is that we have to figure this out in the next two years."

Rufus Woods, editor and publisher in Wenatchee, sent a letter July 1 giving notice even though he will save about 4% in 2009. "We will evaluate it between now and then," he said about the two-year timeline. "It may not be the best use of our resources." "It is a big chunk of the budget," Jenkins said about her AP costs, which she says will be about $171,000 in 2009. "As is true, I am pretty sure, for every newspaper."

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.

One group included editors from Ohio, while the other spanned The Boston Globe, Pittsburgh Post-Gazette and Philadelphia Inquirer, among others.

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.

"We haven't decided what we are doing," said Susan Goldberg, editor of The Plain Dealer in Cleveland, who signed both letters. "It is somewhat cheaper if you buy their full package."

Several editors said that the new rates would give then a slightly cheaper cost. But others claimed the flexibility is not widespread enough. "We are examining what we are going to do," said David Shribman, Post-Gazette editor. "We don't rule out a world in which we are not members of the Associated Press."

But none of the original letter-writers who spoke with E&P would acknowledge plans to cut the service. "There has been no talk of dropping it," said Jeff Gauger, editor of the The Repository in Canton, Ohio. "We are still weighing what we want to be involved with."

Editor Tom Callinan of the Cincinnati Enquirer said "Everything is on the table," while Ron Royhab, editor of The Blade in Toledo, declared: "there are options, you can give notice or keep what you have."

[cookcounty]

So....where they going to get their news from.....Kos?

[PGalt]

GRRRREAT news! Thanks for posting.

The Right to Know (post #14) BUMP!!!

[Clay Moore]

If the AP and the fish wraps sue each other who do we cheer for? I’m thinking it’s like watching two fire ants fight to the death. Who cares who loses, we win!

[sionnsar]

Resisting the temptation to comment. Thanks to RainMan for the ping.

Say WA? Evergreen State ping

FReepmail sionnsar if you want on or off this ping list.

Ping sionnsar if you see a Washington state related thread.