May 13, 2014

‘Somebody has to do it’: why a Fairfax pull-out wouldn’t kill AAP

A consultancy report has recommended Fairfax save money by cutting its AAP subscription. But the wire brings in only a third of AAP's revenue these days. Crikey goes inside the economics of a wire agency.

Myriam Robin — Media Reporter

Myriam Robin

Media Reporter

Could Fairfax cancel its subscription to Australian Associated Press? And if it does, what would that mean for the wire service?

The Australian recently got its hands on a consultancy report suggesting Fairfax do just that. It prompted AAP chief executive Bruce Davidson to send out an email to calm the troops. “The viability of AAP is determined by many factors and the cancellation or otherwise of services by a customer is only one,” he wrote, taking issue with a suggestion carried in the Oz that the cancellation of Fairfax’s subscriptions would threaten AAP’s viability.

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