AP rolls out video service; eyes revenue sharing

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Posted: Monday, November 5, 2012 11:19 am | Updated: 9:11 am, Mon Nov 12, 2012.

CHICAGO — The Associated Press is rolling out a new HD video service that permits newspapers to upgrade their online video offerings.

AP CEO Gary Pruitt said the service, which the cooperative has been marketing in Europe, is now available to North American newspapers. The Wall Street Journal, Pruitt said, is the first U.S. paper to use the service.

“It’s basically on-demand to HD videos; newspapers just search for the videos they want and pay for what they use. You get broadcast-quality news online,” he said at Inland Press Association’s annual meeting last week.

“This type of product was out of range for most newspapers before; now they don’t have to invest in costly video equipment.”

AP is also making available to newspapers a digital vertical offering, dubbed Digital News Experience. The service, Pruitt said, is a package of curated content that can be branded under the newspaper’s own name.

Subjects include sports and other news events. “This will help keep people on your website,” Pruitt said. “They won’t have to go (elsewhere) to get information.”

AP is making the service available for free, with the agency sharing national ad revenues 50/50. Papers keep the revenue generated from local ads sold as part of the package, Pruitt said.

“Revenue-sharing is a new model we have to explore,” he said. “With newspapers facing economic challenges, AP can’t go in any longer and say, ‘pay us more.’ Revenue sharing allows us to offer new services and help you too. Being partners is a way for both of us to sustain ourselves.”

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