Monday, December 01, 2008
Looks like the largely oligopolic news wire industry will soon have a new purveyor. It's not news that newspapers all over the country are letting go of their AP memberships, as they cut spending (staff). But with CNN pitching to offer a wire service for cheaper than AP, struggling newspapers could bite the bait.
Does this mean there will be more CNN bureaus and jobs created in the near future? Who knows.
Is the honeymoon over for the AP, which recently announced some troubles of its own. Again, who knows. The AP says it services 5,000 broadcast outlets, which is far more than its 1,700 newspaper subscribers. Heck, CNN uses AP wire services.
By the way, AP CEO Tom Curley says: "Breaking news is very, very expensive and if they (CNN) have the resources to spend on it, we welcome them to the game."
So I guess they aren't worried. And it doesn't seem like they'd need to be.continue...