Associated Press photo
The Columbus Dispatch announced today that its service cancellation with the Associated Press, effective Jan, 17, 2011. As a result of AP’s service with its current rates, the company decided to to maintain their local reporting staff instead. In addition, Dispatch requested AP to cease transmissions generated by Dispatch.
The fragile state of the newspaper business has been evident, with the industry falling by almost 40 percent, according to Goldman Sach's analyst Peter Appert. With newspapers constantly trying to minimalize costs and maximize profit via their websites' news outlets, why doesn't the AP lower their rates to keep their customers?
In Rick Edmond's article, "What Would Happen if Newspapers Divorce AP," AP is obstinate about not cutting rates and acquiescing to its customers, even when it's becoming more and more advertising-oriented and maintains its lucrative media giant status as a major news and photo owner and distributor.
AP is already reaping profits from newspaper staff cuts. According to AP executive editor, Kathleen Carroll,
"Good mid-sized papers are being forced to make a lot of strategic decisions
about what only they can do and should continue to do." The local, local, local
answer makes sense, but quasi-national health and science specialists often end
up on the list of good things a regional can no longer afford.
Thinking back to our discussions on Chomsky's first filter on size ownership and profit-orientation, is the media going to be monotonous as they rely on recycled and redistributed articles from AP? Does an editor have to choose between a press staff and profits?
