As the Charlotte Observer developed state and regional news-sharing partnerships and embarked on new local content initiatives, it began to question whether it really needed the AP any more. If readers could get their national and international news off the web, and the Observer ’s future survival depended on superb local coverage, why would it pay for the AP?

Apparently, the Observer was not alone. In April 2008, the AP took steps to address such concerns. The board of directors voted to reduce member assessments by a total of $21 million, or 10 percent, for 2009. [1] AP’s vice president and director of strategic planning Jim Kennedy concedes that the wire “learned a tough marketplace lesson” by not more quickly appreciating the changing needs of its base. [2] Then in October, as newspapers’ bottom lines continued to hemorrhage, AP introduced an additional round of 2009 cuts that would bring the total to $30 million. It also issued a moratorium on future rate hikes under the current pricing structure. [3] Finally, it pledged to launch a “re-examination of the AP membership structure and of service options… including the creation of different classes of membership and services.” [4]

At the Observer , editors eagerly awaited news of the new service option. They hoped that it might mark a retreat from what they considered a new mindset at AP. Editor Thames, for example, had long felt that Curley’s appointment had marked the beginning of a new way of doing business at the wire service. He comments:

It did appear that [Curley’s] arrival coincided with renewed emphasis on the business of AP… When I would be visited by bureau chiefs, more often it was because they had a new product they wanted to sell… whereas in the past they’ve been more about how to improve coverage. It just felt like it became more of a business relationship from that point forward.

The Observer hoped for increased choices. “An à la carte feature is a good idea,” says Managing Editor Carpenter. “Each day we can choose what we need, rather than what they deliver to us.”

In April 2009, at the cooperative’s annual meeting, CEO Curley and Board Chairman Dean Singleton announced several changes: 1) An additional round of $35 million in fee reductions would kick in for 2010; 2) AP would allow members to cancel service with only a one-year notice, as opposed to the long-standing two-year requirement; but 3), and most important, was the unfurling of Member Choice, which gave newspaper partners the option to continue at a “Complete” level of coverage and service or drop down to a new “Limited” tier that would reduce content, but also lower costs. AP described it this way:

The revised Member Choice plan is designed to provide flexibility and customization that will allow AP member newspapers to choose the level of content that best serves their needs, while also enabling them to control their costs. AP Member Choice Complete will provide full access to all of AP‘s English-language text reporting. AP Member Choice Limited will provide a reduced AP text news report for newspapers that need less national and world coverage. Each of these services can be customized by adding or removing various categories of news. Members will also be able to choose from supplemental services, including Photostream, video and multimedia produced services. [5]

During his keynote address to the annual meeting, Curley affirmed the cooperative’s commitment to members: “Today we emphasize one point. AP is fully committed to helping the industry meet the challenges we face together…. AP will be there for you, anticipating as best we can where we need to be and what we need to deliver. Our basic promise to the Cooperative is undiminished by the difficult economic environment.” [6]