AP: Newspapers Now Provide Only 20 Percent of AP Revenue

I’ve got a collection of ‘oldies but goodies’ posts from the last few months to publish. Here is the first of a series from news from late October.

From Poynter’s Biz Blog, a look at the shift in revenue away from AP’s traditional Newspaper base.

Revenues from newspapers have fallen by about one-third at the Associated Press since 2008, from $220 million a year to about $140 million in 2010, and now make up just over 20 percent of the organization’s total revenue.
CEO and President Tom Curley revealed the decline when I asked him last week about the cooperative’s business relationship with its member-owners. He added two more financial nuggets:
  • “We expect it will continue to drop another $5 million to $7 million a year” in 2011 and beyond.
  • The AP loses money on services to newspapers and effectively subsidizes those offerings with more profitable lines of business. But Curley said he was uncomfortable with continuing that imbalance indefinitely.
Though Curley and AP spokesman Paul Colford did not provide numbers for other business segments, Curley said growth areas include commercial photos, software businesses and AP’s international television news feeds, about to receive a $30 million upgrade to digital.

Full article here

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