CQ Politics | Lifelines Sought for Flagging Newspaper Industry:
[Via CQ Politics]
Alarmed by the daily drumbeat of stories about the demise of newspapers in their hometowns, some members of Congress are proposing ways to help, from allowing media organizations to form as nonprofits to easing antitrust laws.
But the proposals have met with skepticism from some newspaper analysts who worry about the media’s ability to maintain its autonomy.
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Newspapers are going to have to adapt. Their big revenue stream, Classified Ads, is gone. Their newsworthiness is diminishing by all the cutbacks.
Perhaps an online only version , such as the Seattle PI, will be one model. I’m a little fascinated by the non-profit route. Some legislation is being proposed that would allow them to be fully non-profit, with the tax-advantages that entails.
“We’re losing our local papers and it’s tragic. We need to look at a different model to save local newspapers,” said Sen. Benjamin L. Cardin , D-Md.Cardin introduced a bill Tuesday that would permit newspapers to operate as nonprofits, or 501(c)3 corporations, much as public broadcasting now does.
Under this arrangement, advertising and subscription revenue would be tax-exempt, and contributions to support coverage or operations could be tax-deductible.
So, make them like PBS. It would be an intriguing model, although I can only see this working for local news organizations. It is much more expensive to fund a nationwide paper vis a non-profit model.
Unless a modern day Hearst wants to set up a foundation to run major papers.
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