The AP is really positioning itself to be the mobile news distributor of choice. Look where their application shows up in the iTunes App store:
I’ve talked to a couple of people at one paper about moving into the mobile space with iphone applications or android applications, and the response is generally “why bother?”
But the AP is taking it seriously, and I wouldn’t bet against the mobile platform as a way to reach news consumers. I think it’s going to grow.
Eat Sleep Publish is a Seattle-based blog that explores the difficulties and opportunities currently facing the publishing industry. 
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