Posted Jan. 29, 2008

By JOE STRUPP
Editor & Publisher

NEW YORK Many editors from Boston to San Diego are protesting a string of Associated Press practices, from new fee structures to news coverage practices, according to a pair of strong letters sent to AP executives in recent weeks, obtained by E&P.

The letters were, in part, a response to an AP rate structure change announced last summer that will take effect in 2009. The new structure, in essence, allows for more flexibility in service, according to AP, which says it will allow new a la carte services and a decrease or unchanged cost for most newspapers.

But editors, from very large and smaller papers, who penned the letters claim the changes are not enough, will actually increase some fees, and should be revised to allow for more savings in a time of industry economic constraints.

The letters are expected to be addressed, at least to some degree, during the AP Board meetings set for later this week. Kathleen Carroll, AP's executive editor, met on January 17 with a group of editors in Ohio on this matter.

AP President Tom Curley told E&P that no plans were in the works to change the rate structure again and believed it offered a fair decrease and new flexibility.

"The AP fees have been set by the board after careful structuring," Curley said, adding, "about 80% would get a cutback, 10% will remain the same and 10% would go up." He said no further rate changes are likely.

The most recent editors' letter, sent Jan. 2, 2008, is from a group of eight newsroom leaders at major newspapers, ranging from The Boston Globe to the San Diego Union-Tribune. Addressed to Curley and Carroll, it takes issue with the AP rates and the recent new structure plan.

"The failure of Associated Press to cut its rates is especially mystifying given that AP itself seems to be expanding, most recently adding to its already robust, admirably strong foreign coverage, even as its newspaper members undergo rigorous and continuous belt-tightening," the letter (see below) states, in part. "Editors would have welcomed consultation, in the traditional spirit of partnership between AP and member newspapers, on whether foreign coverage was more important to them than a rate cut."

The letter is signed by editors Martin Baron of the Globe, Karin Winner of the Union-Tribune; David Shribman of the Pittsburgh Post-Gazette; Bill Marimow of the Philadelphia Inquirer, Nancy Barnes of the Star-Tribune in Minneapolis; Susan Goldberg of the Plain Dealer in Cleveland; Ken Brusic of the Orange County Register; and Harry Whitin of the Worcester (Mass.) Telegram & Gazette.

"As editors of American newspapers, all of us are managing through difficult times. We are sharply cutting expenses, paring the size of our publications and reducing staff," the letter says. "We are doing what we must, no matter how difficult. However, year after year, we are confronted with high charges for Associated Press services. Rates for basic service were stabilized in 2007. Yet rates for supplemental services continue to rise. Also, AP invoices lack detail on how rates are calculated, and our budget-cutting efforts are stymied by onerous cancellation policies."

The letter ended by asking for "urgent attention to the financial needs of is members and to begin cutting rates immediately." Baron and Goldberg declined comment on the letter, while others were not immediately reachable for comment.

That letter followed a previous, separate letter sent Dec. 21, 2007, by a group of editors and publishers from six Ohio newspapers. It contends both rates and news practices are unacceptable to them, declaring, "we pay nearly $4 million annually to the AP. That's a hefty sum even during the best of times – and we all would certainly agree that these are not the best of times."

The second letter, sent to Curley, goes on to cite the AP rate structure change in 2007 that included some decreases, but did no go far enough, in their view. "…all of us are struck by the fact that, at a time when our revenues are declining, AP is presenting a new cost structure that, best we can tell, holds our costs constant or near constant," the letter states. "If we were in a flat revenue environment, this might work. But as you know, this is not the case. The environment now is extremely challenging and the new structure seems not to acknowledge the current reality."

That letter is signed by Editor Bruce Winges of the Akron Beacon-Journal, Tom Callinan of the Cincinnati Enquirer; Susan Goldberg of the Plain Dealer in Cleveland; Benjamin J. Marrison of the Columbus Dispatch; Ron Royhab of The Blade in Toledo; and Todd Franko of the Vindicator in Youngstown. Publishers from each paper also signed the letter, except for the Vindicator, which offered general manager Mark Brown's name.

Royhab said the letter was prompted by a meeting of the editors involved in December in Columbus, Ohio, where they sought to bring their complaints to AP officials.

"We believe AP needs to be more cooperative with working with us on a cost structure that is more cost-effective," Royhab said Tuesday about the letter.

The Ohio letter lays out complaints about several issues beyond fees, including the delay in moving breaking stories on the wire, failing to credit newspapers for some stories, and denying requests for coverage of state events. "We want basic coverage of news events, including such things as state legislative hearings and committees," the letter states. "We have increasingly difficulty in securing your agreement to do that; instead, you are focusing on what we'd rather do ourselves - enterprise."

The Ohio editors and publishers also contend that competition bylaws are being breached, stating, "we are all members of AP, yet increasingly we find you are competing with us, your clients. Instead of moving stories we have produced, there are times when you have instead decided to 'match' our story and produce your own version."

Royhab said the bylaws limit the distribution of a member's story through AP to other AP members within a 30-mile radius, a rule he contends is continually ignored

The letter prompted a Jan. 17 meeting in Columbus with Kathleen Carroll and Thomas Brettingen, a senior AP vice president, Royhab said. He said the meeting offered little progress, contending that Brettingen further upset some of the editors by noting that newspapers account for just 30% of AP revenue. "Nothing has been changed or resolved that we can see," Royhab said.

Brettingen told E&P he believed the editors' concerns were properly addressed and that the new rate structure offered more choices and a broader availability of breaking news. Curley said he did not attend the meeting because of another scheduling conflict, but believed the concerns were adequately addressed by Carroll and Brettingen.

Carroll also defended the rate change, saying, "we all recognize that newspaper editors are having a tough time. The AP is doing something about the fee structure and rates are coming down."

Under the current AP program, each paper is sold a package of stories created by AP based on the paper's location and size. That package usually includes breaking news, sports, business and other national, international and regional news relevant to the market, including its state AP wire.

With the new structure, AP member newspapers would receive all breaking news worldwide, including that from other state wires, as well as breaking sports, business and entertainment stories. Five other non-breaking news categories of sports, entertainment, business, lifestyle and analysis would be available at an additional cost on an a la carte basis.

"We are giving members a choice on what they pay by making choices on what they receive," Brettingen said. "Rather than have our editors make the choices, take all of our content and bring it in to one very large package of breaking news, and set up a variety of vertical packages."

Brettingen also said another new program, a digital co-op service, is being formed that will allow member news outlets to share digital content in exchange for digital content, and receive a rebate of up to 3% of the cost of its AP fees.

As for one of the concerns raised in the letter, Curley cited the competition claims as easily resolved by having the newspapers request their content not be distributed locally. "All they have to do is ask," he said. "We do not think it is the best move and we would urge them not to go there because it starts a slide that is not helpful to the cooperative."

David Ledford, president of Associated Press Managing Editors, said the concerns were a topic of discussion during APME meetings this past weekend. He said some editors are concerned because specifics about the rate structure are unavailable.

Curley said AP officials are in the process of meeting with editors nationwide to discuss rate structure specifics, noting that is one of the reasons for the 2009 implementation date.

Latest letter posted below:

January 2, 2008

Tom Curley, chief executive
Kathleen Carroll, executive editor
Members of the Board of Directors
The Associated Press
450 W. 33rd Street
New York, New York 10001

Dear Tom, Kathleen, and members of the AP Board of Directors:

As editors of American newspapers, all of us are managing through difficult times. We are sharply cutting expenses, paring the size of our publications, and reducing staff. We are doing what we must, no matter how difficult.

However, year after year we are confronted with high charges for Associated Press services. Rates for the basic service were stabilized in 2007. Yet rates for supplemental services continue to rise. Also, AP invoices lack detail on how rates are calculated, and our budget-cutting efforts are stymied by onerous cancellation policies.

Most exasperating of all is that AP's rates don't decline. Editors of newspapers are not getting meaningful help from AP when they need it most. They need help now. Without relief from AP, the organization's members must make even more drastic cuts in their own newsroom staffs. Essential coverage is sacrificed.

These newspapers have been the mainstay of the Associated Press for decades. The information their newsrooms gather is a vital resource for the AP.

While AP has announced a new way of packaging its content and a new pricing plan, it has yet to unveil details that can be acted upon today. Moreover, any savings would not take effect until 2009, and the savings remain theoretical at best.

The failure of Associated Press to cut its rates is especially mystifying given that AP itself seems to be expanding, most recently adding to its already robust, admirably strong foreign coverage, even as its newspaper members undergo rigorous and continuous belt-tightening. Editors would have welcomed consultation, in the traditional spirit of partnership between AP and member newspapers, on whether additional foreign coverage was more important to them than a rate cut.

We are asking AP to give urgent attention to the financial needs of its members, and to begin by cutting rates immediately. At the same time, it should allow members to eliminate services quickly and easily and should make its rate calculations fully transparent.

We look forward to a prompt response, and particularly to positive action.

Sincerely,

Martin Baron, Editor, The Boston Globe
David Shribman, Executive Editor, Pittsburgh Post-Gazette
Karin Winner, Editor, The San Diego Union-Tribune
Bill Marimow, Editor, The Philadelphia Inquirer
Nancy Barnes, Editor, Star Tribune, Minneapolis-St. Paul
Susan Goldberg, Editor, The Plain Dealer, Cleveland
Ken Brusic, Editor, Orange County Register
Harry Whitin, Editor, Worcester Telegram & Gazette

Joe Strupp (jstrupp@editorandpublisher.com) is a senior edior at E&P.

© 2008 Editor & Publisher