AP Board authorizes new pricing structure for newspaper members

NEW YORK -- The Associated Press Board of Directors today approved the plan for implementing AP’s new packaging and pricing structure for newspaper members. Meetings with newspaper members about specific details of the new plan will begin next week.

“With today’s Board authorization, we can start providing our newspaper members with more specific pricing information on AP’s new ‘Member Choice’ service, which the Board of Directors approved at the last Board meeting in October 2007,” said Tom Brettingen, senior vice president for AP Global Newspaper Markets. “Most papers will find their assessments decline, and access to content and flexibility in using it will increase for all members.”

The Member Choice service constitutes the most important overhaul of AP’s pricing in the history of the cooperative. It will reduce assessments for 80 percent of papers; about 10 percent will remain the same; and, about 10 percent will see an increase, although it will be phased in. AP estimates that Member Choice will save member papers about $6 million. Newspapers also will now have access to all of AP’s breaking news, from state to international. In addition, all newspapers will have more flexibility to license AP content for expanded use in their markets. The new pricing plan will take effect in January 2009.

Member papers are also eligible for reductions in their assessments by participating in AP’s new content enrichment and indexing service. The service involves tagging newspaper content to make it more searchable and easier to organize, opening up potential new revenue opportunities. AP estimates that participation in the service could return up to $7 million to member newspapers.