By Kyle Austin
After 41 years the Associated Press and the Dow Jones have ended their news sharing partnership. The Dow Jones will no longer carry news coverage from the AP and has signed an agreement to distribute news from the Agence France-Presse.
According to an AP report by Seth Sutel:
AP’s chief revenue officer Tom Brettingen said in a statement that AP didn’t believe it was being adequately compensated for the use of its news on Dow Jones Newswires.“We weren’t able to resolve that with Dow Jones, so we’re going our separate ways,” Brettingen said. “We’ve been expanding our domestic financial coverage significantly, and we’re in the process of doing the same internationally.”
Louis Hau with Forbes.com covered the story in detail this morning and added his insight on the matter:
For decades, the partnership gave the AP coverage of business and financial news, while Dow Jones got access to dispatches on politics and global affairs, as well as a relatively low-cost means to expand its overseas presence by locating many of its correspondents in AP bureaus.But today, AP and Dow Jones don’t really need each other as much as they once did. The easy accessibility of breaking news over the Internet has made it less urgent for Dow Jones to supplement its news content with comprehensive non-business coverage from the AP. And now that it is part of the global News Corp. empire, Dow Jones has access, at least in theory, to office space and other facilities that it didn’t have before.Meanwhile, the AP has greatly expanded its own coverage of corporate news and the financial markets–partly with the help of editors and reporters it poached from Dow Jones.
Hau goes on to make a key point in stating that the biggest shift in this split will be felt overseas where the AP and Dow Jones currently share 30 offices. The AP had been fairly dependent in getting overseas business insight as part of its relationship with Dow Jones. Without the help of Dow Jones the AP could be hurt in its foreign business coverage as it struggles for traction in the market with incumbents including Reuters, Bloomberg and the aforementioned Agence France-Presse (AFP).
AFP, the least talked about of the bunch, could turn out to be the biggest winner. They will now have their content distributed by Dow Jones and Google. The AFP joined the AP, The Press Association in the United Kingdom and The Canadian Press in a deal with Google last August to allow Google to host and distribute its news content.