Dow Jones & Co, recently bought by Rupert Murdoch's News Corp, has struck a deal with Agence France-Presse (AFP) to distribute news from the Paris-based agency through its Dow Jones Newswires unit, replacing a partnership of more than 40 years with the Associated Press (AP).
Dow Jones Newswires will also expand its global editorial staff as part of a broader investment in financial news, the company said. Last week Dow Jones acquired Betten Financial News, a Dutch financial news provider. Under the agreement Dow Jones Newswires, a real-time provider of financial and economic news to investors, will distribute general-interest and political news from AFP, an Associated Press (AP) report said.
Dow Jones and AP had shared news stories, and in about 30 locations overseas reporters from both organizations shared office space, Dow Jones Newswires spokeswoman Diane Thieke said. The timing of the dissolution of that partnership was still being worked out, she said.
AP's chief revenue officer Tom Brettingen said in a statement that AP didn't believe it was being adequately compensated for the use of its news on Dow Jones Newswires. "We weren't able to resolve that with DJ, so we're going our separate ways," Brettingen said. "We've been expanding our domestic financial coverage significantly, and we're in the process of doing the same internationally."
Dow Jones, which also publishes the Wall Street Journal, Barron's and the Dow Jones industrial average, was acquired last year by Rupert Murdoch's News Corp. The announcement does not affect separate editorial agreements that the Wall Street Journal and Dow Jones' Factiva news database business have with AP.
"AFP is delighted to become a supplier to Dow Jones Newswires, known around the world for its rapid, reliable and complete coverage of global business and finance," said Pierre Louette, chairman and chief executive of AFP in a statement. "We are confident this will be a mutually beneficial agreement for our editorial teams and our two companies. This agreement underscores the importance of fast, accurate, market-moving news to global financial news providers."
An internal Dow Jones memo to staff obtained by Reuters said that negotiations with the AP were unsuccessful and that AP had decided to end the deal, which has included sharing offices and close integration. Dow Jones will begin shuffling employees out of bureaus where it shares space with AP.
AP, which is based in New York, is a cooperative that is owned by its 1,500 daily-newspaper members. AP in recent months has been reorganising its bureaus and undergoing other changes as it expands internationally and seeks new revenue sources beyond its traditional base. Many of its member newspapers, meanwhile, are suffering from a steady fall in advertising revenue.
Dow Jones Newswires competes with Reuters Group PLC in delivering financial news. London-based Reuters, which is being acquired by Canadian electronic publisher Thomson Corp in a deal scheduled to be completed on April 17, provides financial, general and political news from around the world. AP has had a deal with Dow Jones since 1967.
