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Newspapers Beam Local News to iPhones via AP Mobile Network

iPhone addicts will soon be able to access Associated Press national and local news, via web pages specifically formatted for the iPhone. Though the iPhone currently offers local maps, directions, weather and traffic, it provides no local news.

The AP is creating a Mobile News Network that will allow newspapers to distribute AP content to the iPhone and other smart phones. According to remarks made by Tom Curley, president and CEO of Associated Press, during the AP annual meeting yesterday, Mobile News Network members can participate by providing local news that will appear alongside their logos. The network also offers a new outlet for members to sell local advertising to the mobile audience.

“The size of the smart phone revenue market may be modest at first - we estimate about 10 percent of current industry on-line revenues. Depending on the growth rate of the installed base and whether current advertising CPMs can be maintained, the market could grow to a half billion-dollar-a-year business before long,” Curley said.

Content will be displayed by ZIP code with AP providing national and international news, and members providing local news. A center managed by AP will handle infrastructure needs, and AP will pick up the costs. Services provided by AP will include ad serving, content markup and delivery.

Representatives of Advance, Hearst, Lee, McClatchy, MediaNews and Rust Communications have developed an initial set of business rules governing content contribution and advertising revenue splits. The rules are meant as “Release 1.0” to enable a rapid launch of the platform.

Following launch, the participants will revise the rules based on operating experience.