Media News - Tuesday, April 15, 2008
AP cuts prices, announces mobile product
The Associated Press announced Monday it will further cut fees paid by
struggling newspaper members and will develop an advertising-supported
service that will deliver stories and photos to advanced cell phones,
including the iPhone. The service, which will carry local news from
participating newspapers as well as national and international news from
the AP, is being tested with several newspaper companies and is expected
to launch in the summer under the name Mobile News Network, the AP said.
AP said it was working with cell phone manufacturers and carriers to
develop a user interface for the service. A product to provide news
videos is also in the works. AP President and Chief Executive Officer
Tom Curley said that while the service was designed specifically for
Apple Inc.'s iPhone, it can be used with other "smart" phones. Curley
said the service would be organized by ZIP code, with AP managing and
paying for a central facility to handle technical and ad-serving
functions. Local ads would be sold by participating newspapers and
national ads by ad networks. Revenue would be split 50-50 between news
providers and ad sellers.
(AP)
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