UNIT- 1: Global News Agencies & Services

Contents

1.0 Objectives
1.1 News Agency
1.2 How do News Agencies Function?
1.3 Global News Agencies
1.4 Global News Services
1.5 Role of UNESCO
1.6 One Way Flow of Communication
1.7 Summary
1.8 Answers to check your progress
1.9 Model Examination Questions
1.10 References
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1.0 OBJECTIVES

After reading the unit, you will be able to:

• understand what news agencies and other news services are
• the business of news agencies
• have an understanding of the roles and scope of major global news agencies today
• understand concepts such as one way flow of information and cultural imperialism
• understand the contribution of UNESCO in the fields of communication and information
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1.1 NEWS AGENCY

We live in a globalized world today, where information is of paramount importance.

Consequences and repercussions of events are no longer limited to the place they happen but have
far-reaching effects. For instance, the collapse of the American banking sector which is also called
the sub-prime crisis of 2008 led to a global economic slowdown and its consequences were felt in
countries as far as Japan. This brings one to wonder as to how the newspaper that one reads at home
is replete with facts and reports of incidents happening worldwide just a day after they occur? Logic

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would dictate that the answer is simple, newspapers have reporters stationed in each of those places,
but then one wonders is the answer really so simple?
The business of News is an unpredictable one, it is often impossible to predict where the next
newsworthy event is to happen and thus impossible to station reporters at precisely that location at
the time of the event. It would be cost-wise unfathomable for a news organization in India to have a
reporter in each of the 196 countries of the world and the 672 districts in India at all times. It is here
that the role of news agencies come to the fore. A news agency is an organization that gathers news
reports and sells them to subscribing news organizations, which could be television channels,
newspapers, radio stations or internet based news-feeds. A news agency is known across the world
by several names like, wire service, newswire, or news service.
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1.2 HOW DO NEWS AGENCIES FUNCTION?

As briefly summarized in the previous section, a news agency need not generally publish the
news its reporters cover. It supplies news to its subscribers, who, by sharing costs, obtain services
they could not otherwise afford. All the news organizations rely on such agencies for most of their
news, this includes the larger news houses that have the resources for extensive news-gathering on
their own. It works like a co-operative service where the money from all its subscribers is pooled to
hire reporters and gather information on a scale that would not be possible with the resources of a
single news organization. The major news agencies in India are the Press Trust of India (PTI) and
the United News of India (UNI).

The role of news agencies becomes larger when it comes to news organizations in the
developing world as the decisions and policies if the developed world have a huge impact on these
nations but the news organizations of these countries seldom have the necessary financial resources
to send reporters for international coverage. On the other hand, the developed countries have
increasingly begun to invest their resources as well as extend their business empires to the
developing nations and they seek information from these nations at all times. In other words there is
a need for the flow of information and news in both ways for a globalized world to function
smoothly. It is here that symbiotic relationships between news agencies comes to light. For example
India’s PTI exchanges information with over a hundred international news agencies including major
agencies like the Agence France-Presse (AFP) of France and the Associated Press (AP) of the USA.

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 Historically speaking the most popular of the early news agencies is Agence Havas which later
went on to become Agence France-Presse (AFP). It was founded by Charles Louis Havas, a Parisian
translator and advertising agent in 1835 during the Austro-Hungarian Empire. However, the role of
international news agencies was felt world over only after the second-world war as empires gave
way to independent nations. In the seven decades since, the news business of the world has been
dominated by several large agencies like Reuters, Associated Press, Agence France-Presse, the
Deutsche Presse-Agentur, TASS and Xinhua. The next section will attempt to give you a brief
understanding of the leading news agencies in the world.

Self-Assessment Questions – I

1. What is a news-agency?
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2. What are the symbiotic relationships between news agencies?

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1.3 GLOBAL NEWS AGENCIES

Agence France-Presse (AFP): AFP is the post second world war

successor to Agence Havas the oldest news agency in the world. It is
interesting to note when Havas was set up by Charles Havas in 1835, his
workers included Paul Julius Reuter and Bernhard Wolf. The two of them went on to establish their
own agencies Reuters and Wolffs Telegraphisches Bureau respectively. In the 1930s the three
agencies combined to form a European cartel of news and information thus establishing a monopoly
of sorts.
However, after the Second World War and the liberation of France by the allied forces,

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Agence Havas became AFP. It was established as a state enterprise, it began to re-establish its early
information networks as it became the first agency to report the death of the Soviet dictator Joseph
Stalin on March 6, 1953. It is controlled by a consortium of French newspapers though it is best
described as an unsubsidized autonomous organization according to the statutes of the French
government.
Today, AFP is the oldest news agency in the world and one of the three largest with
Associated Press and Reuters. Headquartered in Paris, it uses a network of 1,500 reporters in 200
bureaus across 150 countries for 5,000 news stories every day. Its services are also available to non-
print news organizations as it also provides 3,000 photos, 200 videos and 100 graphics and
vidoegraphics on a daily basis. Its news is disseminated in six languages namely, French, English,
Arabic, Spanish, German, and Portuguese.

Reuters: Reuters today is the largest news agency in the world.

The Reuter agency was established in 1851 by Paul Julius Reuter, who
earlier worked at Agence Havas in Britain at the London Royal Exchange. He developed a prototype
news service in 1849 in which he used electric telegraphy and carrier pigeons to receive news. Due
to the proximity to the London Stock exchange the company initially covered commercial news,
serving banks, brokerage houses, and business firms. The first newspaper client to subscribe to the
agency’s service was the London Morning Advertiser in 1858. In 1863 it was the first agency to
report the assassination of the American president Abraham Lincoln to the world.
The news agency Reuters today has around 3,000 journalists and 650 photojournalists at its
disposal in almost 200 bureaus around the world. It has its offices in 94 countries and has a news
mechanism that delivers news in more than 20 languages to almost a billion people in the world. It
provides to its subscribers a composite content feed that consists of general and political, sports,
business, entertainment and lifestyle news, with a range of integrated and online delivery options for
broadcast, text, pictures, graphics and data feeds (for internet websites). Over the years the Reuters
news service has strengthened its hold over the information flow from the global business sector and
today it relays information from around 160 stock exchanges and markets to its subscribers.
On May 15, 2007 Reuters was bought by the Thomson Corporation. Thomson Corporation
headquartered at Connecticut in the United States was one of the world’s largest information
companies at the time. The merger deal valued at 17.2 billion US dollars saw the birth of Thomson
Reuters, an organization that at the time of the merger controlled 34 percent of the market for
financial data in the world.

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 Associated Press (AP): AP is an American multinational nonprofit news
agency headquartered in New York City. It is a news co-operative owned by its
contributing newspapers, radio and television stations in the United States. All the
members of the co-operative contribute stories to the AP collective and take stories from it on a daily
basis.
It was started historically as a not-for-profit news cooperative in 1846 by five daily
newspapers in New York City to share the cost of transmitting news of the Mexican-American War
by boat, horse express and telegraph. By 1849 the Tribune had become a member of the co-operative
and in 1851 after the founding of New York Times, it also became a member. In 1935, AP became
the first news agency to launch the Wirephoto network, which allowed transmission of news
photographs over private telephone lines on the day they were taken. This gave AP a major
advantage over its rivals.
Today, the news provided by the Associated Press is published by more than 1,700
newspapers, and use by more than than 5,000 television and radio broadcasters. It uses a network of
more than 5000 correspondents. The photograph library of the AP alone, consists of over 10 million
images. AP receives information from 243 news bureaus in 120 countries. Associated Press also
provides its subscribers with access to The Associated Press Radio Network, which provides
newscasts twice hourly for broadcast and satellite radio and television stations. With the decline of
its compatriot and counterpart the United Press International (UPI) in 1993, AP today is the largest
American news agency in the world.
News from the Associated Press pool is also being used on the home pages of popular
websites such as Yahoo!, MSN and on Google News.

Deutsche Presse-Agentur (DPA): DPA is a German news agency

based out of Hamburg in Germany. It was started in 1949 as a successor to
the Deutsche Nachrichtenagentur and the Süddeutsche news agency. Today
DPA has over 1,200 employees and has offices and staff in over a 100 countries around the world.
The "DPA Basic Service" is the most significant German news service, it provides its
subscribers over 800 daily reports from the entire world from the worlds of politics, business,
culture, and sports. The DPA Photo Service on an average provides its customers about 350 photos
daily along with customized content for radio stations, TV channels, electronic media, mobile
communication providers and the Internet. Apart from German, the DPA also provides news to
subscribers in English, Spanish, and Arabic.

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 Telegraph agency of the Soviet Union (TASS): TASS today is
known as the International Telegraph Agency of Russia (ITAR) and is
not a global news agency in terms of size and resources as the other
agencies discussed so for. However, it was during the Cold War that TASS was at its peak. After the
Second World War, as most History text books will tell you, the world was divided into the first
world which was the United States, the United Kingdom and France who believed in the principles
of capitalism and the second world which comprised of the countries that allied with the USSR and
it’s political ideology of communism.
The Cold War is best described by former British Prime Minister Winston Churchill as a
time when “an iron curtain had descended across the continent of Europe.” The so called iron
curtain was not to be lifted till the collapse of the Berlin Wall in 1989 and the consequent re-
unification of Germany. It is in such a setting when the Soviet Nations in Eastern Europe used TASS
as the only official news agency. An agency which determined not only what the rest of the world
would read about the Soviet World but also what the Soviet public would read about the rest of the
world.
However, since the division of the USSR, TASS has been renamed as ITAR and has become
a “central government news agency”. Today in its ITAR avatar, it has more than 130 bureaus and
offices in Russia and abroad. It exchanges information with more than 80 foreign news agencies and
translates its news into five languages. As opposed to the past, when at its peak TASS employed
close to 2,000 journalists and photo correspondents from 682 offices in the USSR and 94 bureaus
worldwide. Thus, providing content to 4,000 Soviet news organizations.

Xinhua: There can be some parallels drawn between Xinhua

today and its yesteryear counterpart TASS. For, instance both are state
controlled news agencies and both serve(d) communist regimes, where free-flow of information has
been restricted.
Xinhua in the Chinese political setting is a ministry-level department, answerable to the
State Council. Xinhua’s president is a member of the powerful Central Committee of the Communist
Party of China. In other words the president of the agency is often a politician from China’s ruling
party. The Xinhua press agency was started in November 1931 as the Red China News Agency and
in 1937 was changed to its current name Xinhua, which literally translates to the New China News
Agency. At times it has been impossible to separate the news agency from a government embassy as

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it has often represented the ruling Chinese government in places with no diplomatic ties, Hong-Kong
is one such example.
Xinhua has often been described as the "eyes and tongue" of the Chinese Communist Party,
observing what is important for the masses and passing on the information. Former Xinhua director,
Zheng Tao observes that Xinhua is viewed as a bridge between the ruling Party, the government and
the people, communicating both the demands of the people and the policies of the Party.
As a news agency, Xinhua operates 107 foreign bureaus worldwide, and maintains 32
bureaus in China. Newspapers in China are heavily reliant on Xinhua for news related to the
Communist Party and the Chinese Central Government. Xinhua News Agency delivers its news
across the world in six languages namely; Chinese, English, French, Russian, Spanish, and Arabic.

Self-Assessment Questions - II

1. The World’s three largest news agencies today are?

a. __________________________________
b. __________________________________
c. __________________________________

2. Reuters, the news agency was bought in 2007 by the American media company
_______________________________________________ for the amount of 17.2 Billion
dollars to be renamed as __________________________________.

3. The Associated Press a ____________________________________ co-operative was

joined by _________________________________________ in 1851 immediately after it
was founded.

4. The former Russian agency TASS and The Chinese agency Xinhua can be considered
similar because?
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 5. The two major news agencies of India are :
a. ______________________________________
b. ______________________________________

6. The first ever news cartel in the world was formed by these agencies in Europe :
a. _______________________________________
b. _______________________________________
c. _______________________________________ . The founders of all these agencies at
one time worked at ________________________________________.
7. AP’s technology that allowed for transmission of photos over the phone is called
___________________________________.

1.4 GLOBAL NEWS SERVICES

In this section of the chapter we will attempt to look at the news content and material that is
transmitted beyond the countries it is produced in. In other words content made for other countries by
nations. This is something that has been happening for years as countries attempt to enamor people
worldwide with their messages. These services are also used in order to convey information and
policies to diaspora communities living in various countries of the world.
India’s service is called All India Radio (AIR) External. This service is managed by the
External Services Division (ESD) of the All India Radio. AIR uses this service “as a medium for the
expression of India’s attitude to world events and problems.” Other such famous services from around
the world include the BBC World Service, the Voice of America, Deutsch Welle Radio (Germany),
and Radio Moscow (Russia).
British Broadcasting Corporation (BBC): India being a
former British colony has always been exposed to products of the British
mass media and the BBC world service is no different. The BBC world
service was conceived at a time when the colonial power wanted to
reach the various provinces of their empire using the salient features of
radio. It started as the BBC empire service in 1932. Radio was extensively used by Hitler in Nazi
Germany as a tool for propaganda and mass mobilization, something realized by the allied forces later
during the course of the Second World War.
With the development and mass adoption of technologies such as the Television and the

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Internet one can now access programs from various BBC services online at any time of the day.
Going back to the history of the BBC, it was established by a consortium of radio manufactures in
1922. The BBC as a corporation is the world's oldest national broadcasting organization and the
largest broadcaster in the world in terms of employees with 23,000 of them.
However, in this chapter we will focus only on the BBC world service which is the world’s
largest international broadcaster. The BBC world service today, broadcasts news, speech and
discussions in 28 languages to many parts of the world using a plethora of radio platforms. It uses
both the analogue and digital shortwave platforms, internet streaming, podcasts, satellite radio,
Frequency Modulation (FM) and Medium Wave (MW) relays. The World Service is estimated to
reach about 180 million people a week on average.
In recent years, the number and type of services offered by the BBC has decreased due to
financial pressures faced by the BBC. With the arrival of internet based services, the need for a radio
station has reduced, especially in the developed countries where the population has easy access to
BBC’s digital content. After the Second World War, the World Service (then called Overseas
Service) transmitted content across Europe in all of Europe’s major languages. But with English
becoming the lingua franca of the world, broadcasts in several languages were stopped as people
from these countries preferred to tune into the English broadcasts. Over the years broadcasts have
been stopped in languages such as German, Dutch, Finnish, French, Hebrew, Italian, Japanese and
Malay. Today the world service broadcasts in 27 languages across the world.
In terms of finances, the BBC World Service is supported with grants from the Foreign and
Commonwealth Office of the British Government. However, from 2014, it is being funded by the
same compulsory television license fee levied on every household in the United Kingdom using a
television to watch broadcast programmes (same fee used by its parent company, BBC).

Voice of America (VOA): The Voice of America is the

American equivalent of the BBC world service. However, it is
important to note that since the USA was not a colonial power, the
Voice of America was born out of an initiative taken by Nelson
Rockefeller where shortwave signals were sent to Latin America to
combat the threat of Nazi Germany. It was only in 1942 that VOA went into the hands of the Office
of War Information. A deal was struck with BBC immediately and soon Allied propaganda was
being broadcast in 40 languages using a network of 39 transmitters. After the Second World War all
these services came to halt and the VOA was moved to the jurisdiction of the U.S. State department.
However, the services were to resume soon in 1947 to counter the Soviet propaganda, something

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that lasted for the duration of the Cold War.
Today, VOA broadcasts to a global audience of 120 million in 45 languages with about
1,500 hours of programming each week. It broadcasts programmes in a variety of formats which
includes content for television, and the internet. The annual budget of maintaining the VOA network
is estimated over 200 million US dollars, which is paid for by the American taxpayers.
It is interesting to note that the content of the VOA was never available to be heard in
mainland USA by law, probably a clear indication that the content was considered inappropriate for
American citizens as it was a propaganda tool for US interests. However, the repealing of a certain
set of US laws has allowed for VOA to broadcast in domestic territory for the first time in June
2013.It will be interesting for the global audience of VOA to monitor the change in programming
content (if any) due to this landmark change.

Self-Assessment Questions – III

1. Please note the differences and the similarities between BBC’s world services and the VOA?
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2. Do you think with the arrival of digital platforms like the Internet which enable us to tune
into Internet Radio and podcasts, there is a need for expensive ventures like the BBC World
Service and the VOA?
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1.5 ROLE OF UNESCO

United Nations Educational Scientific and Cultural Organization

(UNESCO): UNESCO is best known as a specialized agency of the United
Nations Organization (UN). As an organization UNESCO has 196 member states
and nine associate members. It focuses to contribute to peace and security by
promoting international collaboration through education, science, and culture. In
order to achieve its objectives UNESCO focuses on five major sectors namely; education, natural
sciences, social and human sciences, culture, and communication and information.
In this chapter we will look at the communication and information section. Giving a
historical overview of the role of UNESCO in the global communication sector is important if we
are to understand the activities UNESCO focuses on today. UNESCO has always focused on the
need to impart technical education with regards to mass media for people from the third world. It has
introduced several modules for the professional training of journalists over the years. It has always
attempted to develop the third world using the mass media as a tool.
When the time came for UNESCO to propose the creation of the New International
Economic Order (NIEO) for the countries from the third world, it realized it was not going to be
possible without taking into consideration the socio-cultural factors of these countries, merely
focusing on the political and economic factors seemed inadequate. At this juncture UNESCO
sponsored the Many Voices One World report which is commonly known as the Macbride report
(written by Sean Macbride). This landmark report challenged the domination of a western model of
information flow, and recommended the creation of a New International Information and
Communication Order (NIICO) or a New World International Communication Order (NWICO). As
a consequence of this both the United Kingdom and the United States of America pulled out of the
UNESCO. .
Consequently, the NIICO was implemented in the hope of reversing the one way flow of
information. Several regional co-operative news agencies were established to challenge the global
domination of the Big Western Agencies. However, entry into the news agency market was tough as
these agencies were competing against organized businesses with superior technical training and a
saturated market. The organized agencies called content from these agencies “biased” and based on
“propaganda”. The movement failed as none of these organizations were able to capture a foothold
in the market in a hope to create a two way flow of communication.
UNESCO learning from its mistake has refocused its energies on challenging the global
information order from the avenues of alternate media. It has now begun to look at core themes such

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as communication for sustainable development, development of community media platforms and the
imparting of knowledge to enable media literacy among the people of the developing nations. This
is a clear indicator that UNESCO has embraced the need for development of capacities of people in
the third world as a way for them to achieve empowerment.
UNESCO has committed to media forms like Community Radio for which it has developed
a handbook and sees the potential of participatory communication in challenging the one way flow
of information. Though this new approach of UNESCO seems less radical and political on the
surface, it is bound to bring better results than the NIICO experiment. But the results are going to be
gradual, but definitely more holistic.

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1.6 ONE WAY FLOW OF COMMUNICATION

Though, the sheer statistics and size of global news organizations like Reuters and the
Associated Press indicates the success of the businesses built around the information from these
organizations. However, it is hard to ignore the perils of such one sided perspectives. Over the years
questions have been asked about the imbalance and distortion of facts from the global agencies when
it comes to the developing world. The global west has over the years retained its power over other
countries due to a mix of financial and technological superiority. This is something that continues to
reflect in the global news scenario as distances between the first world and the third increase every
day.
The use of news agencies based in the west and deeply rooted in the philosophies of
capitalism has created a bounded space for consumers of media products worldwide. We live in a
world today where, when one thinks of the word Afghanistan, the image that flashes in our head is of
Osama Bin Laden who incidentally was from Saudi Arabia and not an Afghan. There is a theoretical
concept called framing which is better explained in the field of communication theory but in short, it
is a concept which deals with how audiences when exposed to the same kind of content over a period
of time begins to look at the world from only that set of perspectives.
The global news agencies have framed in our minds a sense of cultural imperialism where
we believe that everything from the west is far superior in nature to what we have in the third world.
A notion that is continuously being reinforced by the global mass media every day. The entire spirit
of globalization and democracy is built around the spirit of freedom and possibility, giving us two
forces which were not available to everyone in the colonial era. But then we must wonder if cultural

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imperialism is different from colonization. We are no longer physically colonized but aren’t our
minds are being culturally subjugated every day?
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1.7 SUMMARY

This chapter provides an overview of the news agencies in the world today. It looks at what
news agencies are and why do news organizations need them. It also brings to the fore the fact that
information and communication need to flow and news agencies are enablers of that flow. A critical
examination of news being reported in various products would indicate the dependence on news
agencies by the mass media.
There are several types of news agencies regional, national and global. India’s two national
agencies are the PTI and the UNI. This chapter focuses on the global agencies which are Associated
Press (USA), Thomson Reuters (UK), Agence France-Presse (France). Other smaller global news
agencies include DPA (Germany), TASS/ITAR (Russia) and Xinhua (China). It is understood that
these global news agencies today provide close to 90 percent of the news in the world today.
The influence of these agencies raised questions in the past, which led to the establishment
of movements like the NWICO. However, the establishment of regional news agencies to counter
the established global agencies did not lead to the establishment of a new information order but
reinforced previous hierarchies. UNESCO as an organization has now begun to focus on other ways
to bring about a global equality in flow of information and communication.
The last part of the chapter looks at the concept of a one-way flow of information and how it
creates notions such as cultural imperialism in the minds of the consumers.

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1.8 ANSWERS TO SELF ASSESSMENT QUESTIONS

Self-Assessment Questions - I

1. A news agency is an organization that gathers news reports and sells them to subscribing
news organizations, which could be television channels, newspapers, radio stations or
internet based news-feeds. A news agency is known across the world by several names like,
wire service, newswire, or news service.

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 2. The sharing of information and news between news organizations and agencies is a
symbiotic relationship, where both the parties involved gain access to information
unavailable to them prior to the exchange. It can be compared to a win-win situation where
both the parties involved are on equal footing.

Self-Assessment Questions – II

1. a. Reuters b. Associated Press c. AFP

2. Thomson communication, Thomson Reuters
3. Not for profit/non-profit, New York Times
4. They both are similar because:
a. State controlled agencies
b. Are part of the communist regime
c. Control the flow of information both in and out of their countries.
5. a. PTI b. UNI
6. a. Reuters b. Wolffs Telegraphisches Bureau c. Agence Havas, at Agence Havas
7. Wirephoto

Self-Assessment Questions – III

1. The differences are:

a. The UK was a colonial empire whereas the USA was not
b. The BBC world service started as a way to communicate with colonies but VOA was
started to counter Nazi propaganda in Latin America
The Similarities are:
a. Both the services were used extensively during the second world war and the Cold War
to counter oppositional propaganda

2. No, with the arrival of services like the internet people who are interested to tune into such
services can access them online, the cost of broadcasting can be minimized. The arrival of
ways to showcase multiple perspectives and ideologies makes concepts like propaganda
seem redundant today.

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1.11 MODEL EXAMINATION QUESTIONS

1. What is a news agency? Discuss their role in the business of news today.
2. Briefly analyze the concept of news exchange and how is it beneficial?
3. Analyzing the concept of one-way Information flow, do you think there is a need to correct
this phenomenon?
4. While drawing from the failure of the NWICO movement, briefly outline the new
communication and information initiatives of UNESCO.
5. Explain the concept of cultural imperialism. Describe the role played by global news
agencies in creating this concept.

1.13 REFERENCES

1. Fenby, Jonathan. The International News Services. Schocken Books

2. Schwarzlose, Richard. The American Wire Services. Ayer Co Pub.
3. Associated Press. Breaking News: How the Associated Press Has Covered War, Peace and
Everything Else. New York: Princeton Architectural Press
4. Malek, Abbas & Kavoori, Ananadam. The global dynamics of news: studies in international
news coverage and news agenda. Greenwood Publishing Group.
5. Li, Jinquan & Lee, Chin-Chuan. Power, Money, and Media: Communication Patterns and
Bureaucratic Control in Cultural China. Northwestern University Press.
6. "UNESCO General Conference; 34th; Medium-term Strategy, 2008–2013; can be
accessed online at: http://unesdoc.unesco.org/images/0014/001499/149999e.pdf
7. Andrei G. Richter (1995). "The Russian Press after Perestroika". Canadian Journal of
Communication 20 (1). Can be accessed online at:
http://www.cjc-online.ca/index.php/journal/article/viewArticle/842/748

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