Reuters and upstart syndication service Politico have signed a distribution agreement that will see both share content across their networks.
Politico content, primarily US political stories will be available alongside Reuters content to Reuters clients.
The more interesting part of the deal sees Reuters content offered for free to Politico members in return for ad placement. Politico currently offers a market unique service that allows member newspapers and online outlets to republish a limited number of Politico articles in return for ad placement with shared revenue. The new deal with Reuters sees the number extend to 10 articles and/ or image per day from Politico and Reuters available for free in return for ad placement. Reuters and Politico will split their share of the ads with end users.
Despite its strong global presence, Reuters has always been an underdog in the US market vs AP, primarily due to the ownership of AP coming from the newspapers themselves. Reuters only has 14 distribution agreements in the US, and with Politico on board now extends that reach by 60.
(via NY Times)