Digital shift: AP to change newspaper fee formula

The Associated Press says it will change the formula for determining the fees it collects from U.S. newspapers to capture the growing number of readers online and on digital devices.The new formula, which goes into effect in 2012, will be based on the size of a newspaper's print and digital audiences. It replaces a formula based on print circulation that has been in effect since 1985. The AP is trying to reverse two consecutive years of declining revenue. The decline is partly the result of falling print circulation as the Internet attracts more readers and newspapers shrink their delivery areas. A bigger factor has been AP's decision to lower its rates during the past two years to help newspapers cope with a sharp drop in advertising revenue.