The Huffington Post announced last week that it is planning to stop using Associated Press stories once its contract ends in 2015, and instead plans to build an in-house news service while relaunching its website and expanding internationally.
Huffington Post co-founder and editor-in-chief Arianna Huffington made the announcement in a year-end memo to the staff:
At the end of our contract in 2015, we will be ending our relationship with AP and building our own news service in-house. At the same time we will be doubling down on original reporting and bringing together a new investigative team.
HuffPo joins CNN—which created a huge stir in 2010 when they dropped AP—and the Tribune newspapers, with the exception of The Los Angeles Times, which followed suit in 2012, switching to a domestic service offered by Reuters.
The move by HuffPo is expected to save millions of dollars in fees, which will be partially offset by the costs of building their own news service, but it also gives them more control over their content.
For the AP, the loss of another big customer only underscores the challenges the service faces in a world of changing news-consumption habits and shrinking newspaper budgets, which will continue for the foreseeable future and exert pressure on what AP can charge for its services.