As more and more newspapers trim costs and find alternative information sources with lower costs, the Associated Press has seen revenues dwindle. The internet has swooped in and replaced the newspaper in many ways, and although the AP is big into online content as well, it hasn't landed huge deals with any huge internet properties. That is, until now.Yahoo (YHOO), still a leader in overall web traffic every month, has signed a deal with the AP that gives the information provider a new source of revenue from the new media field that is competing heavily with print and broadcasting industries. As revenue from the two older mediums goes away, AP needs to find more and more online providers to sign deals with. A renewal with Google (GOOG) and this new deal with Yahoo! go a long way into ensuring AP won't wash away with older information mediums as they are replaced by PCs, smartphones and even new products like Apple's (AAPL) iPad.
Will AP continue to survive in a digital world where information, in many ways, becomes even more of a commodity that it is in near-line media like newspapers and television? That's the million-dollar question with no answer at this time. But one thing remains crystal clear: the internet democratizes information as fast as possible and provides information seekers with a plethora of instant tools to find the most relevant news information. AP is not the only game in town inside the phenomenon known as the internet news.
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