Gee, how outdated can an industry be when you're fighting for the right to use its original content for free?[1] It's not like the AP is trying to protect the underling facts here. Meltwater could have gotten around the licensing requirement simply by paraphrasing and summarizing instead of copying snippets verbatim. But that would've required paying people and it's cheaper to just let AP do the work for free. That's almost the definition of free-riding.
More generally, people throw out the word "innovation" whenever they want to use content for free. The internet allows new distribution mechanisms. There is innovation in that, sure. But distribution mechanisms are useless without content. Creating an innovative new distribution system doesn't entitle you to get content for that system for free. Ultimately, what people value is the content, the distribution system is just a means to an end. If the creators of that content want to be compensated for it, they should be. Nothing stops you from "innovating" a new distribution system using content the creators of which are happy to license for free, other than the simple fact that there is no money in that because very few people want "indie" content.
[1] Does the government sometimes use law to prop up outdated industries? Sure. Often the demand for a kind of product dies out but the companies producing that product manage to talk the government into artificially propping up that demand. If the government used regulation to prop up the CRT industry after people had moved to LCD's, that would be an example. But when it comes to copyrighted works, that's not the case. The demand for creative content from the major record labels and movie/television studios has never been higher. People desperately want the products Sony BMG, Warner Brothers, etc, are selling. Forcing people to pay for the privilege is not "propping up" an obsolete industry.