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Archive for April 9th, 2008

Say what? A new business model for news should begin with … profit?

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It’s the new conventional wisdom: The news biz is dying. Declining circulation. Abandonment by advertisers. Falling revenues. Cuts in staffing to reduce costs. The news biz needs a new business model, the critical harpies proclaim.

But what should a new business model for an industry whose principal product is journalism look like?

It would have to recognize several new — and old — realities.

Any new business model must generate profit.

There’s no way around this. Journalism is best sustained within a for-profit frame. A company that engages in newspaper journalism as a product is not supported by government (unlike public television) nor should it be. The same holds for commercial broadcast journalism as well. To provide news, the company must make a profit to attract investors and secure the resources to collect, report and transmit that news. A non-profit model cannot immediately match the breadth and depth of news reporting that a healthy democracy of more than 300 million citizens requires.
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Written by Dr. Denny Wilkins

April 9, 2008 at 11:14 am

Posted in Uncategorized