Reuters to pull plug on AAP?

Reuters has abandoned an agreement for its stories to be distributed exclusively by Australian Associated Press and instead is seeking deals with individual publishers, The Age reported.

It said there is little likelihood of a new deal before the deadline because Fairfax Media and News Ltd, which own more than 90 per cent of AAP, are resisting separate deals.

AAP pays Reuters A$600,000 a year to distribute a limited selection of Reuters’ stories, the newspaper said. But Reuters wants to increase the fee progressively over 5 years, starting with a 117 per cent jump to A$1.3 million in the first year.

AAP rejected the increase, prompting Reuters to cancel the partnership.

Reuters already supplies video and pictures directly in Australia.

Joachim Schmaltz, Reuters’ vice-president for Asia, said direct distribution of news stories was “a natural progression”.

Pay TV broadcaster Sky News has agreed to the new terms and will have access to the entire Reuters news feed. ■