This great piece by my colleague, Victor Pickard, 
came out while I was on vacation, so I didn't
have a chance to send it on.

The time has come for sweeping media reform--a 
sine qua non (along with election reform
and campaign finance reform) for the salvation of 
American democracy. As Victor points out,
the time for starting this debate is now.
MCM

Take the profit motive out of news
Advertising-supported journalism is dead. We 
should use this moment to restructure the media 
along more democratic lines

by Victor Pickard

http://www.guardian.co.uk/commentisfree/cifamerica/2009/jul/23/newspapers-internet-adverstising/print

The recent Washington Post debacle of attempting 
to sell access to political elites via "salons" 
at the home of the paper's publisher offers a 
startling glimpse at how low commercial media 
have stooped. Yet we shouldn't be surprised. This 
is what happens when commercial news 
organisations are desperate for increasingly 
elusive profits. Such machinations will likely 
only get worse.

As newspaper revenue and circulation plummets, 
the commercial press grasps for creative new ways 
to turn a buck. Many papers have begun running 
ads on their front pages - a space once deemed 
off-limits - most egregiously exemplified by the 
Los Angeles Times running one indistinguishable 
from a news story. Other papers are laying off 
reporters and editors, dismantling foreign and 
statehouse bureaus or literally shrinking the 
size of their publications to stay afloat. And 
others have simply closed the doors forever.

How bad do things have to get before we recognise 
the need for a structural overhaul of our media 
system?

As they scramble to meet Wall Street's demands 
and pay down debts accrued from earlier 
consolidation sprees, many news organisations are 
in denial about two unsettling facts.

First, advertising-supported journalism is dead. 
Though structurally flawed from its origins - and 
historically biased toward powerful interests - 
this model functioned for 150 years. Its reign is 
over.

Second, there is no new commercial model that 
will replace what's being lost anytime soon. Even 
as newspaper companies beg Congress for antitrust 
exemptions, collude in secret to set up online 
pay walls and crack down on copyright violations, 
nothing comes close to replacing the print 
advertising revenues being lost.

Many media companies are trapped in old ways of 
thinking. They see news as merely a commodity. 
They refuse to acknowledge that the news business 
is no longer as profitable as it once was, nor 
will it likely ever be so again. But many papers 
can remain sustainable if they are managed 
properly and driven less by profit imperatives 
than a commitment to public service.

Toward those ends, Free Press recently published 
a report (pdf) that offers a two-pronged approach 
to removing or minimising commercial pressures on 
news-gathering.

On one track, we propose changing tax laws to 
make it easier for news organisations to become 
low- or non-profit entities, controlled by the 
communities they serve. For example, low-profit 
limited liability companies would help remove 
market pressures from news operations and mandate 
public service.

On the other, we need to better fund and expand 
public media and R&D efforts toward long-term 
solutions. The government has a role to play in 
providing resources that promote new media 
experiments and innovation.

We need to create a permanent place in society 
for a multimedia, nationwide press system that is 
shielded from market fluctuations. In addition to 
local and investigative news, these civic media 
would include cultural and educational content 
and be conferred the same special status as 
public museums, parks, libraries and schools - 
all necessary institutions for a healthy 
democratic society.

Indeed, some media owners concede that the market 
has already stripped profit from their news 
organisations and they are simply looking for a 
way out. We can help facilitate this changing of 
the guard through managed divestiture and 
prepackaged bankruptcies, thereby returning 
newsgathering to local communities and 
journalists themselves.

The bottom line is that newspapers are in crisis 
because of their flawed business model. Our task 
is to take advantage of this historic moment to 
remove the profit motive in newsgathering. By 
emphasising how the current structures are 
broken, we can hold the line on our existing 
media system's decline while at the same time 
advocating for entirely new models. Drawing the 
wrong lessons from our current crisis leads to 
embracing the wrong alternatives, like allowing 
more media concentration.

To be sure, some for-profit models continue to 
function, and new ones may emerge. What's more, 
many struggling news organisations would still 
make a profit if it were not for their parent 
companies' crushing debts, and perhaps they could 
continue to do so for years to come if shielded 
from increased market pressures.

But the purely commercial model no longer works. 
Yet like some beast that has not yet realised 
it's received a mortal blow, commercial media 
will seemingly go to any length - even selling 
their journalistic integrity - to prop up this 
failed model.

As it becomes abundantly clear that a corporate 
media system cannot withstand market pressures 
long enough to deliver the news our democracy 
requires, it's time to make an orderly transition 
to a public service model. The first step in this 
conversion is for government to implement sound 
public policies that restructure media along more 
democratic lines.

If we don't start rethinking the entire media 
system, and building the political will to change 
it, newspapers selling access for money may be 
the least of our worries.
        *       guardian.co.uk © Guardian News and Media Limited 2009
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