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Is the AP Shooting Itself in the Foot By Pursuing a Paid Content Business Model?

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Newspapers have been struggling not just due to the economy but also due to the availability of accessing the news for free on the internet. Newspapers have resisted the change, at times trying to restrict technological advances. One example is the battle newspapers have engaged with Google, claiming it's copyright for their articles to show up in search results.

While some newspapers have finally embraced the inevitable, the AP still seems to be dragging its feet. This week, they announced a cut in rates to newspapers and also a more aggressive stance on sites that are aggregating their news feeds without permission.

AP has two major problems with this strategy:

  1. They're not the only news organization out there
  2. They now have to compete with the average Joe who can blog, Twitter and update their Facebook statuses with live accounts of news events from earthquakes to wars to entertainment events

Sure, it can be frustrating for a business to have to adjust to changing times and come up with a new business model, but AP wouldn't be the first one to do so. Companies that wish to exist in any industry for the long haul must be prepared to adapt to new technologies and the winds of change.

What do YOU think of AP's aggressive strategy? Tell us how it is in the comments.


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