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According to this AP article, Press Association, the organization that runs the Associated Press, will be raising the prices for online use of its content. Although PA has always charged for online use of AP wire news, some companies that have licensed AP content for print use have been able to piggyback web use at no extra cost. Seemingly, the new rate development is aimed at deriving more value from these dual uses. The formula for calculating the new license fees has not yet been established, so it is difficult to fully asses the impacts of the increase.

Generally, when an individual content provider raises its fees, media outlets that license outside news may look to content syndication as an alternative. One major benefit of syndication is convenience. An outlet can obtain multiple content sources by signing a single agreement with the syndication company. Often, syndication companies can offer lower prices because of volume discounts they receive from content providers. However, under the PA's rate increases, syndicators that offer AP news may also be impacted by the rate increases.

Back in the 90's, companies like iSyndicate, Screming Media, and Yellowbrix occupied the dwindling syndication space. Now, Syndication is back with a new group of advocates: SYNDICATE "The Premiere Event for Content Syndication Trends" happens in New York on May 17-18, 2005.

Posted by AZ at April 18, 2005 05:15 PM | TrackBack