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Competition Heats Up in Newsrooms

By: Maya Lunnemann | 12/05/2008

Until recently, the Associated Press was the go-to resource for high-quality, breaking news. Newsrooms paid top dollar, more than $800,000 for some members, to access the AP's stories. But several have recently revolted against the high fees (despite the fact that the AP is a member-owned nonprofit). CNN jumped all over the revolt, launching into the print and online world with a new wire service, CNN Wire.

Newspapers around the country are weighing the pros and cons of switching. Many agree that the AP provides rich content and wonder if CNN Wire will be able to match it. On the other hand, shrinking newsrooms need to find ways to reduce costs just to survive - and cutting AP services may be one way to salvage newsrooms.

So, is this just one more indicator that traditional newsrooms are dying? Or is it just a case of some healthy competition?

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