Associated Press sources report Associated Press working on iPad app

Business Insider's The Wire is reporting, rather humorously, that AP sources have the scoop that the Associated Press is working on its own iPad app. It will reportedly be a paid subscription news app that generates content from the AP and more than 1,000 member newspapers and broadcasters.

The AP follows the New York Times and other news sources that are developing applications for the iPad. While the AP doesn't say if the app would be available for the iPad launch late next month, the hope is that its eventual release will generate sales from the three million people who have downloaded their free iPhone app and would be willing to pay for the apps features on a larger-screen device. To get users interested in the app, it may be free upon initial launch.

From the official press release:

The group already has drawn up plans to charge for an application designed for the iPad, a 1.5-pound tablet computer that Apple Inc. is scheduled to release at the end of March. The price of the application has yet to be determined, although it might start free, according to Jane Seagrave, a senior vice president who becomes the AP's chief revenue officer Monday.

Much like the AP Mobile news product, the iPad app will show custom packages of headlines, stories, photos and video from the AP and from newspapers and broadcasters that choose to contribute their content and share the revenue. AP members also could use the same system to offer their own iPad apps that show their own content.

The AP iPad app is just the first product from the AP's new business unit known as "AP Gateway" that will focus on mobile platforms. The AP is among the legion of print-centric news organizations that have seen revenue hit hard by free papers and the internet. A week ago, a Danish paper made the case that devices like the iPad are the newspaper industry's only hope for paid distribution. While many still debate whether the iPad is the savior the publishing industry needs, it's clear that the major publishers are gearing up for an iPad world.
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