CNN to Compete with the Associated Press

CNN, the cable news leader, is set to compete with the Associated Press, the largest newspaper wire service in the world, reports the New York Times.

This week, CNN is holding a “CNN Newspaper Summit” at its headquarters in Atlanta to discuss their plans to cut into the A.P.’s profit margin. Editors from some 30 newspapers will be in attendance, eager to hear what CNN can do for them, should their newspapers decide to switch allegiance to a CNN newswire. CNN's major goal at this “Summit” is to convince these editors that they can run a viable alternative news wire service, and do it better and cheaper than the AP can. This may not be difficult because, according to the New York Times:

A number of newspapers are unhappy with the cost of The A.P., a nonprofit corporation that is owned by the 1,400 papers that are its members. Some newspapers have even given notice that they intend to leave The A.P.

This expansion of CNN’s news service seems logical to many. Not only does CNN already have its own internal news wire service, but it employs over 3,000 journalists around the world that can easily be used for this new venture. According to the New York Times, this is a competitive threat that the A.P. is taking seriously. Tom Curley, the President and Chief Executive of the A.P., told employees that CNN is:

[C]oming off a very strong election cycle, they have extra money and they’re going to do it because they can.