AP introduces new online licensing fees
Some online publishers such as Yahoo and CNET Networks, publisher of News.com, already pay an online fee to use AP stories. But AP in the past had allowed thousands of newspapers and broadcasters that pay to place its stories in print, radio and television a free ride the Web. Many of these news organizations have small online operations that consist mostly of producers charged with selecting and repurposing news for the Web, rather than creating original content of their own.
The additional expense from AP could hurt the bottom line at such online operations at a time when news publishers are looking to the Web to help fuel revenue growth and profits.
Dow Jones, publisher of The Wall Street Journal, made a big bet on the Web recently through its $468 million net cash acquisition of MarketWatch, an online financial news provider. Meanwhile, The New York Times Co. in February snapped up online publisher About.com for about $410 million in cash.
"The need for online licensing is clear," Tom Curley, AP president and CEO, said during a speech at the agency's annual meeting on Monday, according to a report. "For The Associated Press to endure during this digital transition, we must be able to preserve the value and enforce the rights of our intellectual property across the media spectrum."
