Too many people are tuning out of the news

TOO MANY PEOPLE ARE TUNING OUT OF THE NEWS
[SOURCE: Financial Times, AUTHOR: Richard Lambert]
[Commentary] The traditional news media in the US are in a state of turmoil. Some of the biggest newspaper chains ­ first Knight Ridder and now Tribune Company ­ have put themselves up for sale. Network news broadcasters are slashing their budgets, the latest and most savage example being the cuts heralded by NBC Universal two weeks ago. No wonder there is a siege mentality in newsrooms around the land. Investors seem to be concluding that this is an industry with no future. As is often the case, though, the mood swing has gone too far -- these are still very profitable businesses. The US newspaper industry boasts daily sales of 55m copies, profit margins well into double digits and strong cash flows. There are indications that the long-term decline in readership may have stabilized in recent years and most people use the Internet as a supplement, rather than a substitute, for newsprint. So the big question is not whether the traditional news media will continue to exist in the foreseeable future. Most of them clearly will. But what kind of service will they provide to the public as they adapt their business model -- and with it their editorial content -- to a much more competitive environment? In today’s competitive environment, what commercial interest would a news publisher have in seeking to interest a poorly educated and uninterested person in what is happening in the world? And will market forces, left to themselves, be enough to support that vital component of democracy -- an informed citizenry?
http://www.ft.com/cms/s/fb8dcfce-6905-11db-b4c2-0000779e2340.html
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