The already struggling Associated Press is about to face another obstacle: a soon-to-launch daily wire service from CNN, which promises to deliver the same product cheaper. According to The New York Times, the budget service has high potential in a recessionary climate, particularly since newspapers were in a crunch well before the global financial crisis.
CNN’s recent strategy has been that of original news content. The network recently dropped Reuters’ wire service, saving $3 million. The news network says the wire will not directly compete with the AP. CNN plans to offer a “less for less” type of coverage of national and international events.