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Thaddeus

(353 posts)
Sun Apr 30, 2017, 10:51 PM Apr 2017

Can charity save journalism from market failure?

Can charity save journalism from market failure?

by Victor Pickard, The Conversation
As journalism loses its financial footing, it may need more support from foundations.


A foundation created by eBay founder Pierre Omidyar and his wife Pam recently announced it’s giving US$100 million to investigative news outlets and other initiatives, a rare boon for media institutions under duress. Even a fraction of this gift could help bolster impoverished U.S.-based journalism.

Yet, while foundation-backed nonprofit outlets have clear advantages over their commercial counterparts, they may never compensate for the market failure that’s afflicting journalism.

[...]

A public media trust fund

Private charitable donations can make a difference, but market failure still demands strong public options to provide a safety net while pressuring commercial news organizations to be more socially responsible. A well-funded nationwide public media system could help ensure that all Americans have access to quality news by stepping in where journalism is retreating.

For example, the BBC is aiding the U.K.’s struggling news media by funding 150 local reporters at British news organizations. While expanded U.S. public media subsidies are unlikely during the Trump administration, reformers could set the stage now for political opportunities in the future.

Ultimately, an ideal model would rely on a large public media trust shielded from powerful interests. Foundations could help seed this trust, which would operate independently from any single funder or government entity.

A “public service tax” paid by commercial media companies, the proceeds from spectrum auctions and other fees could also help finance this public trust.

The goal is to fund reporting that a healthy democracy needs but the market has no motive to support. With ads for clothes, cars and banks no longer paying the news media’s bills, sustaining public service journalism in a time of market failure requires creative ideas. Big donations can help tide things over until a new model is established. But we still need a systemic fix.

Read more here: https://theconversation.com/can-charity-save-journalism-from-market-failure-75833

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