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Politico and Reuters join forces in newspaper web deal

LONDON - US political news service has struck a deal with Reuters to jointly offer content to US newspapers as well as sell advertising on the papers' websites.

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The deal will bring together 120 journalists who will offer combined coverage to the more than 60 newspapers and 40 broadcasters in the Politico advertising network.

Politico is a Washington-based upstart news service that delivers television, print, internet and radio news to a variety of media partners.

Recently Politico started to offer its newspaper partners -- including the Philadelphia Inquirer and the Denver Post -- a free stream of daily articles, which will now include access to Reuters articles.

In return, Politico gains the right to sell ads on the newpapers' websites around these articles, and to share the revenue with the papers. These papers can agree to use five Politico or Reuters articles a week and receive 50% of the generated ad revenue. Ten articles a week nets the papers 40% of the ad revenue and 15 articles nets 30%.

The partnership could gain Reuters a small advantage in the US newswire market, which is dominated by the Associated Press, which has more than 1,000 partner newspapers.

Last week, CNN also announced it would be offering a newswire service to US newspapers which should be officially rolled out in the new year.


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