You often notice abbreviations such as PTI, AP, AFP, DPA in news reports. Have you ever wondered what these abbreviations stand for or why newspapers publish them?
It will probably surprise you that these are some of the most powerful and trusted names in news business. Some of them like Reuters have been in existence since the nineteenth century.
However, few are aware of their reach or existence. The media knows them as news agencies, wire services or news wires.
They do not own physical properties such as newspapers or television channels. But they generate news for all forms of media. Their subscribers include newspapers, magazines, radio stations, television networks and now news sites.
In fact, their subscribers exist beyond the news industry. The government buys news services; so do several academic institutions.
The reason for this: news agencies are the best, fastest and most accurate source of news. They have been under pressure recently, especially in the west where several newspapers have either shut down or have gone in for cost cutting.
But they still have some of the best journalists on their rolls. Their subscriber list and their range of stories is still very impressive.
Features of news agencies
The news agencies have a very rigorous work ethic, and ensure that their reporters and editors follow the rules religiously. The reason for this is not hard to understand. The news agency reports are used by hundreds of subscribers across the world. They cannot make mistakes.
Unlike a newspaper where a correction can be carried the next morning, the news agencies have to send corrections to hundreds of subscribers. Imagine the disruption one mistake can cause. Hundreds of papers, radio stations and TV channels will be required to amend the error. They will surely not be kind to the news agency that has put them to such pain.
The following are some of the characteristics that are common to all news agencies or wire services:
- Speed: The news agencies work against the clock. Each minute is a deadline for them. Some newspaper somewhere in the world is being put to bed; some TV channel is getting ready to air its next bulletin. The news agencies can’t wait. They must transmit their report at the earliest.
- Neutral and fact-based: The news agencies don’t take sides. Their reports are factual, and free of bias. Even the news analysis has to be based on concrete evidence. There is no kite flying, insinuations or ambiguities in their reports.
- Sourcing: The news agency reporter is taught from day one that every report must be sourced. The news must be attributed to an individual, an official or an organisation. Reports that are not sourced have to go through the wringer. Senior editors check and cross-check each point before they allow such reports to be transmitted.
Revenue model
Today, the cost of news generation is prohibitive. News agencies need trained and experienced reporters in all state capitals, and in several world capitals too. They have to pay small fortunes to telecom companies to transmit news. There is also overheads like rentals, calling costs and several other sundry expenses. So, how do they make money?
News agencies use two models to generate revenue.
Model 1: The subscription amount is based on the circulation of the newspaper. The subscription fee paid by small and medium newspapers is much less as compared to the subscription fee paid by large and multi-edition newspapers. This way the costs are spread, and the news agencies can build a large subscriber base.
Model 2: The news agencies have introduced several categories of news services. The base service is priced at a minimal rate. However, only a limited number of stories are sold under this head.
The full service is priced much higher but then the range of stories is much more. Separate fees is charged for photographs and infographics. Here too, the news agencies use slab rates. The more you pay the more photographs you get.
The arrival of news websites has opened one more revenue source for news services. They now charge a separate fee for use of wire service reports or photographs on the net. News services like AP, AFP, ANI and Reuters also have a multimedia service where news videos are also provided.
Important Indian news agencies
India has two major wire service – the Press Trust of India, popularly known as PTI, and the United News of India, known by its acronym UNI. There was a time when the two services were strong competitors but over the last few years UNI has been losing its market share. The PTI on its website claims 90% of the news service market in India.
Both the services have an Indian arm; the Hindi news service of PTI is known as Bhasha while that of UNI is known as Univarta.
Besides this, two news services that are growing in importance are ANI and IANS (Indo-Asian News Service). ANI has emerged as a powerful force in the multimedia space. Its news videos are subscribed by almost all news channels and news sites. The ANI also works as the distribution arm for Reuters in India.
IANS started as a wire service for Indian diaspora. It has gradually extended its reach, and now serves a wide range of news stories.
International wire services
The news service business is dominated by three news agencies – Associated Press (AP), which is based in the US, Agence France Presse (AFP), which is based in France, and Thomson Reuters (earlier Reuters), whose headquarters have now shifted to Canada.
Besides this, almost every nation has its own wire service. These are not powerful outside their parent countries. Some of these news services that are available in India are: Tass (Russia), Xinhua (Chinese), DPA (Germany) and Kyodo News (Japan).
The Indian law requires that an international news agency should have an Indian partner if it wants to distribute its content in India. This is why all international wire services are distributed by Indian news agencies.
WATCH SLIDE SHOW ON NEWS AGENCIES
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