Continued protests from its members over higher rates failed to stop the AP’s board from finalizing the cooperative’s new fee structure, E&P reported. Under the new “Member Choice” plan, which goes into effect on Jan. 1, 2009, the AP will give members access to all breaking news, regardless of location or category, to the service’s subscriber papers. However, some other stories will be available at an extra cost on an a la carte basis. All in all, the AP expects its members will save between $6-$7 million in under the new pricing format.

The AP also suggests that some of the new costs could be offset by new services related to online content. When Member Choice goes into effect, it will provide tagging to make news stories more searchable and more likely to be read online. As the AP sees it, newspapers should be able to garner additional ad revenue.

But a Jan. 2 letter from a group of eight newsroom heads at major newspapers, including The Boston Globe and the San Diego Union-Tribune, expressed their extreme disapproval of the plan: ”The failure of Associated Press to cut its rates is especially mystifying given that AP itself seems to be expanding, most recently adding to its already robust, admirably strong foreign coverage, even as its newspaper members undergo rigorous and continuous belt-tightening.”

An earlier E&P item detailed the debate between editors and the AP more closely: the January letter also complained that the AP seemed to be incessantly hitting struggling newspaper with additional charges. “Rates for basic service were stabilized in 2007. Yet rates for supplemental services continue to rise. Also, AP invoices lack detail on how rates are calculated, and our budget-cutting efforts are stymied by onerous cancellation policies.”

Tom Curley, the news organization’s president, defended the changes as eminently fair, saying that roughly 80 percent of the members would see reduced rates, 10 percent would experience no changes and only another 10 percent would go up. Curley also said no other rate hikes were likely to occur.

• Interview: Tom Curley, CEO, Associated Press; Portals, Local Content—‘The Mother of all Battles’
• AP Board Approves New Pricing Structure; Pay As You Go Included; Lower Revenues At AP As a Result