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AP Throws A Tantrum (But Tantrums Do Not A Successful Business Model Make)

April 6, 2009 by Douglas McLennan 5 Comments

AP says it will “take action” against web aggregators that don’t pay fees for linking to AP stories.

Taking aim at the way news is spread across the Internet, The
Associated Press said on Monday that it will demand that Web sites
obtain permission to use the work of The A.P. or its member newspapers,
and share revenue with the news organizations, and that it will take
legal action those that do not.

Associated Press executives said the policy was aimed at major search engines like Google, Yahoo and their competitors, and also at news aggregators like the Huffington Post,
as well as companies that sell packaged news services. They said they
do not want to stop the appearance of articles around the Web, but to
exercise some control over it and to profit from it. The A.P. also said
it is developing a system to track news articles online and determine
whether they were used legally.

Okay, I realize I have a self interest here. ArtsJournal is built on aggregating stories and sending readers after them. And I realize the newspaper industry is under siege and that AP is suffering. The news industry’s woes have spawned a number of increasingly desperate please for solutions, the most common of which seems to be that readers are going to have to start paying for content because it costs us to produce it and they just have to. That’s not an argument, it’s cry of desperation, and there’s so far no evidence that readers will so pay because they want to.

apbuilding (2).jpg

But if you want to understand why the news industry has so failed at adapting to the web, this latest threat by AP is a good example. Google is the enemy? Actually, Google send more traffic to most websites than any other source. Publishers clamor for Google attention. A whole industry has grown up around optimizing web pages to attract Google. Google can throw so much attention to a news story that it can swamp your server. This is bad?

According to the AP, yes. But the AP argument is wishful thinking and not just a little bit disingenuous. If publishers (or AP) didn’t want Google crawling its pages and aggregating links, there’s a way technically to make those pages invisible to Google. So this isn’t s legal argument, it’s a technical one. What AP seems to be saying is “please aggregate us, but because you’re so good at it we want you to pay us.” Trouble is, since AP and the publishers have allowed Google unfettered access, and indeed encouraged the search engines to discover their content, they wouldn’t seem to have much of a case arguing that Google is “stealing” from them.

And other aggregators? The web is all about pointing users to content. This blog entry is based on a story found in the New York Times. Does that mean I should be paying the Times for writing about their story? Fair use would seem to protect me.

And ArtsJournal? I believe we offer a valuable service in curating stories about the arts. Our little headlines and excerpts are intended to throw traffic at stories that might not otherwise get a lot of attention. Without us, fewer readers will see those stories. Editors pitch us to link stories every day. So this is stealing? If we had to pay to link to news publications such as the Times, we’d stop linking to them and we’d concentrate on finding other content. And this is the real problem for the traditional press. When they were the only sources, they could dictate the terms. The proliferation of other content has diminished their power, and walling themselves off from the rest of the web will only hasten their downward business spiral.

One last  point. I will say that it does seem to me that sites like Huffington have been crossing a line in recent months. Their excerpts are now often so long that there’s no reason to click the link to see the original story. This does seem like they’re appropriating stories in a way that offers no benefit to the source. As a daily user of the site, I find the long excerpts annoying (I’d prefer to see the complete original).

I understand HufPo wants to inflate its page views. In the long run though, I think this policy damages them – from the reader side, it forces extra navigation to get to the sources, and from the publisher side it cuts down the amount of traffic HufgfPo could send.

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Comments

  1. callie kimball says

    April 6, 2009 at 6:37 pm

    One word: Reuters. They’re on Twitter. Heart them.
    I agree with your post, and am more than a little appalled that HuffPo isn’t paying the fee that other non-contributing news sources have to pay. Either HuffPo should pay, or they should generate original content for API, like so many other news sources.
    My .02.

    Reply
  2. Larry Murray says

    April 7, 2009 at 8:05 am

    Bingo, Doug! There is fair use and there is unfair use. Indeed we are all interconnected, and the reality is that news flows in many directions.
    I read AJ daily to keep up, to see if I am missing an important story, and to use your links to newspaper stories to stay informed. Some of your content (or the original ideas behind it) appears on my blog, with further commentary and when appropriate, a link back to the original item or journal entry.
    The fairness AJ shows in its aggregate news coverage is an example for all of us to emulate.
    http://arts-america.blogspot.com/
    Larry

    Reply
  3. Jim says

    April 7, 2009 at 7:01 pm

    AP’s move IS an act of desperation, and completely out of touch with the new media world we live in, like it or not. Aggregators perform an invaluable service, and yes — there is fair use and unfair use. But, the bottom line today is that nobody can claim sole, exclusive ownership of facts. Information moves too swiftly and pervasively … he (or she) who tries to hamper its distribution will be trampled.

    Reply
  4. Rory Williams says

    April 8, 2009 at 3:48 am

    "Out of touch" is thinking that you'll get anything of quality–with accuracy and clarity– for free. I've seen too many good journalists leave the business, and I've worked with their cheaper replacements–scary!
    Ads are no longer paying the way, so forget about the theory of Freeconomics (which is continually proven wrong with the demise of every great industry).
    I'd pay for AP content, and if ArtsJournal decided to charge, I'd gladly pay, as I use both religiously.
    Journalism needs a new model, and that includes speaking up for itself. Pay up!

    Reply
  5. Douglas McLennan says

    April 8, 2009 at 11:49 am

    @Rory: I’m not for a moment arguing that journalists shouldn’t get paid. Absolutely they should. We have to figure out a new business model that makes that possible. We will. But AP’s plan will only hasten AP’s demise. And it’s disingenuous. The publications desperately want the traffic aggregators throw their way. But AP also thinks the aggregators should pay the AP for the traffic they send to the publications. The publications could block aggregators from crawling their sites, but they won’t. Why? Because they desperately want the traffic so they can sell ads. Journalism does need a new model, but this isn’t the way to create it.
    I like what Google’s Eric Schmidt said yesterday. Paraphrasing, he suggested that if the current internet ad rates are too low, then the way to boost revenue is to increase traffic through the sites by a factor of ten or more. Realistic? I don’t know, but why not? I also suspect that if print ad opportunities decrease, online ad rates might climb. A lot of newspaper print ads are sold right now only if they include an online component. We’re in a difficult in-between time when the old model doesn’t work anymore and the new model hasn’t yet taken hold. It maybe that more of the old model has to be peeled off before the new model has a chance.

    Reply

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Douglas McLennan

I’m the founder and editor of ArtsJournal, which was founded in September 1999 and aggregates arts and culture news from all over the internet. The site is also home to some 60 arts bloggers. I’m a … [Read More...]

About diacritical

Our culture is undergoing profound changes. Our expectations for what culture can (or should) do for us are changing. Relationships between those who make and distribute culture and those who consume it are changing. And our definitions of what artists are, how they work, and how we access them and their work are changing. So... [Read more]

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