CNN ends use of AP content as contract talks stall

CNN said Monday that it’s no longer using Associated Press content after the two sides could not agree on a contract extension. The AP confirmed that the two news organizations differed on terms for licensing AP stories, photos, video and other content beyond the June 30 expiration of the existing contract. CNN has been an AP customer since the cable network launched in 1980. AP and CNN officials would not comment on why the talks broke down or how much the expiring contract was worth. CNN has a new arrangement with Reuters, an AP competitor owned by Thomson Reuters Corp., to supplement breaking news coverage. Walton also said CNN will be expanding the staff of CNN Wires, a service it has been developing for sale to other news organizations. With traditional media companies facing an advertising slump and rising competition on the Web, the AP has come under pressure from its members to cut rates. It lowered its fees for U.S. newspapers by USD 30m in 2009 and plans a USD 45m cut for newspapers and broadcasters this year. CNN, which is owned by the media conglomerate Time Warner Inc., faces its own challenges. It has struggled to compete in prime-time ratings, with cable news watchers turning to more opinionated shows on other cable TV networks. Nielsen Co. said CNN’s weekday prime-time viewership during the first three months of the year was down 42 percent from 2009

http://news.yahoo.com/s/ap/20100621/ap_on_bi_ge/us_associated_press_cnn

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