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Media pays AP for news content, but Gannett, McClatchy cut ties, save money

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Two of the nation’s largest newspaper publishers, Gannett and McClatchy, are ending their partnership with The Associated Press, one of the world’s largest content providers for news organizations. This is a significant development in the media industry as companies continue to look at ways to cut costs.

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“With this decision, we will no longer pay millions for content that serves less than 1% of our readers,” Kathy Vetter, McClatchy’s senior vice president of news and audience, said in an email reviewed by The New York Times. “In most cases we have found replacements. However, we are still working on a universal solution for state ‘wires’ content.”

Right now, the media industry is having to look at its margins and trim costs where it can. Saving money is one of the reasons Gannett and McClatchy announced they are dropping the AP.

It’s unclear how much the partnership with AP cost Gannett or McClatchy, but it is known that McClatchy was paying millions.

Another reason Gannett gave is because it will use their own network of newspapers and staff around the country to share content from within their own company. Gannett owns USA Today and more than 200 other outlets. For international news, the company signed with Reuters, another major wire.

“This decision enables us to invest further in our newsrooms and leverage our incredible USA Today network of more than 200 newsrooms across the nation as well as USA Today to reach and engage more readers, viewers and listeners,” Gannett spokesperson Lark-Marie Anton said in a statement.

Gannett and McClatchy were said to be in contract negotiations with the AP before news of their partnerships ending broke. The Associated Press issued a statement.

“We appreciate that these are difficult decisions to make and deeply understand the challenges the news industry faces,” AP spokesperson Lauren Easton told Poynter. “At the same time, this would be a disservice to news consumers across the U.S. who would no longer see fact-based journalism from the AP.”

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[KARAH RUCKER]

TWO OF THE NATION’S LARGEST NEWSPAPER PUBLISHERS – GANNETT AND MCCLATCHY – ARE ENDING THEIR PARTNERSHIP WITH THE ASSOCIATED PRESS – ONE OF THE WORLD’S LARGEST CONTENT PROVIDERS FOR NEWS ORGANIZATIONS.

WHILE THIS IS BIG NEWS IN THE MEDIA INDUSTRY –

I WANT TO SHOW HOW THIS WILL IMPACT YOU AS THE NEWS CONSUMER – THE READER OR VIEWER. 

LET’S BREAK DOWN HOW A MEDIA PARTNERSHIP WITH AP WORKS AND WHAT THAT LOOKS LIKE.

THIS IS A STORY FROM THE ASSOCIATED PRESS.

“HISTORIC COVERED BRIDGES ARE UNDER THREAT BY TRUCK DRIVERS RELYING ON GPS MEANT FOR CARS.”

AND THESE – ARE NEWS OUTLETS COVERING THE SAME STORY. WITH THE SAME HEADLINE. POSTED ON THEIR OWN WEBSITES – LIKE ON ABC, SPECTRUM, AND THE NATIONAL POST.

THIS IS ONE REASON WHY YOU’LL SOMETIMES SEE STORIES REGURGITATED IN THE MEDIA.

THE ASSOCIATED PRESS SHARES ITS CONTENT WITH COUNTLESS NEWS OUTLETS.

AND IT’S NOT JUST AP RUNNING A CONTENT FEED TO ITS PARTNERS.

REUTERS IS ANOTHER LARGE MEDIA WIRE.

AND IN LOCAL NEWS – YOUR CBS, NBC, ABC, FOX AFFILIATES HAVE THEIR OWN NATIONAL FEEDS TO PULL CONTENT ACROSS THE COUNTRY. 

THERE ARE PROS AND CONS TO A PARTNERSHIP LIKE THIS.

ONE – IT PROVIDES A NEWS AGENCY A WEALTH OF CONTENT – STORIES, PHOTOS, AND VIDEOS FOR ONLINE AND BROADCAST.

IT ALSO GETS IMPORTANT, BREAKING NEWS TO AN AUDIENCE MORE QUICKLY –

SINCE NEWS OUTLETS DON’T HAVE TO CREATE THE STORY FROM SCRATCH. THEY JUST GRAB IT FROM THE FEED AND PUBLISH.

THE CONS?

IT COSTS MONEY. IT’S UNCLEAR HOW MUCH THE PARTNERSHIP WITH AP COST GANNETT OR MCLATCHY. BUT RIGHT NOW – THE MEDIA INDUSTRY IS REALLY HAVING TO LOOK AT THEIR MARGINS AND TRIM COSTS WHERE THEY CAN. SAVING MONEY IS ONE OF THE REASONS GANNETT AND MCLATCHY ANNOUNCED THEY ARE DROPPING AP.

ANOTHER CON? YOU’RE OUTSOURCING SOMEONE ELSE’S REPORTING. WHICH COMES WITH RISKS WHEN IT’S NOT YOUR ORIGINAL REPORT. 

FOR TRANSPARENCY HERE.

WE HAVE OUR OWN PARTNERSHIP WITH THE ASSOCIATED PRESS. BUT WE DO NOT REPRINT THEIR NEWS ARTICLES AND STORIES. WE USE THEIR PHOTOS AND VIDEOS TO COMPLEMENT OUR OWN CONTENT.

SINCE WE’RE A SMALL GROUP AND INDEPENDENT FROM A MEDIA CONGLOMERATE, WE DON’T HAVE STAFF AROUND THE WORLD TO TAKE PICTURES OF MAJOR EVENTS. THE AP DOES. SO THAT’S WHAT WE USE THEM FOR.

GANNETT ON THE OTHER HAND – IS A BIG COMPANY.

AND IT’S ANOTHER REASON THEY’RE LEAVING THE AP — THEY ALREADY HAVE A LARGE ENOUGH NETWORK OF THEIR OWN NEWSPAPERS AND STAFF AROUND THE COUNTRY TO SHARE CONTENT FROM WITHIN THEIR OWN COMPANY.

AND THEY SIGNED A DEAL WITH REUTERS – ANOTHER MAJOR WIRE – TO OUTSOURCE INTERNATIONAL NEWS.

FOR S-A-N – WE PARTNER WITH REUTERS FOR THE SAME REASON WE DO AP.

FOR PHOTOS AND OTHER MULTIMEDIA.

BUT OUR STORIES ARE OUR OWN – NEVER A COPY AND PASTE FROM A FEED.

GANNETT AND MCLATCHY WERE SAID TO BE IN CONTRACT NEGOTIATIONS WITH THE AP BEFORE NEWS OF THEIR PARTNERSHIPS ENDING.

THE AP RESPONDED – SAYING THEY UNDERSTAND FINANCIAL CHALLENGES THE NEWS INDUSTRY IS CURRENTLY FACING.