The Associated Press is developing a paid subscription Apple iPad service. According to AP sources, it will be a news app that wrangles in content from the AP and their more than 1,000 member newspapers and broadcasters, similar to the AP’s current mobile offerings.
Although there is no timeline to release a demo or price point for the application, the development is part of the AP’s big new mobile initiative debuting today.
CEO and president Tom Curley is in Denver right now announcing a new business unit called AP Gateway. He’s giving a speech before the Colorado Press Association, explaining that the new unit will build on their AP Mobile initiative and work on “news consumer experiences” online and on mobile phones, tablets and e-readers.
“AP Gateway will serve as the launching pad for new products and services from AP and other interested news publishers,” Curley said, according to his prepared statement.
Jane Seagrave, AP’s senior vice president and newly named Chief Revenue Officer, confirmed at the announcement that an Apple iPad application is in the works.
Three years ago, Seagrave was in charge of launching AP’s Mobile for phones. More than 3 million people have downloaded the free AP app. The AP shares content revenue with content partners on the platform.
The new division will build on the Mobile unit and AP’s Online Video Network, but be focusing on paid apps and services on tablets, mobile readers and other platforms.
But the new business unit will be focusing on paid subscription applications in an effort to boost revenues. They have been renegotiating contracts with partners like Yahoo! and Google News and policing piracy of their reporters’ work. They also cut staff last fall.
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