Comments on: The Next Bailout?

By: David Reich

David Reich — Fri, 20 Feb 2009 15:49:33 +0000

I know it would be very tough, but I wouldn’t necessarily write off a political/government solution.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 19 Feb 2009 21:58:12 +0000

Yes, a political solution is a non-starter for a number of reasons.

By: Cam Beck

Cam Beck — Thu, 19 Feb 2009 21:54:39 +0000

“Cam, I am not automatically assuming market failure at all but just positing that there is a worse case scenario where nothing fills the crucial gap.”
If such a worst-case scenario does come to pass, and the market does not respond by filling that crucial role that we all seem to agree the press is supposed to play in a free society, I have serious doubts that the problem can be solved by legislation and taxpayer money.
The roots of the problem would go much deeper than that. It hearkens back to our collective desire for liberty and the wherewithal to maintain it.
Like David, though, I tend to agree that the industry will figure this one out.
As you said, it’s good to have these discussions.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 19 Feb 2009 21:42:43 +0000

David, I have noticed that the NY Times has been doing pay-per-click type stuff. I think we will see more and more interesting developments as media adjusts to new realities.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 19 Feb 2009 21:34:17 +0000

Cam, I am not automatically assuming market failure at all but just positing that there is a worse case scenario where nothing fills the crucial gap.
Seth Godin has done some good posts on this topic lately, including this one:
Time to start a newspaper
http://sethgodin.typepad.com/seths_blog/2009/01/time-to-start-a.html

By: David Reich

David Reich — Thu, 19 Feb 2009 18:48:56 +0000

Call me a pollyanna, but I am hopefully confident that newspapers will eventually figure it out and develop a business model that works for these times. It may be a combination of revenue from online subscriptions, pay-per click and advertising… and some papers may still see some financial viability in producing a print edition as well.
The key thing is that newspapers as news-gatheribs need to stay alive, with or without help from philanthropies and the government.
And Alan’s point about newspapers teaching people how to read and be curious is well-taken. Hopefully, that can be accomplished by reading papers online too.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 19 Feb 2009 16:36:14 +0000

Cam, I agree 100% on business failure and do not assume that nothing will replace it. I said in my post that a worst case scenario is that nothing with the infrastructure of the press replaces it.
Let’s take Afghanistan as a point. With due respect to bloggers and the like, who has reporters on the ground there? Who will send more as the U.S. increases its presence there? I would guess it is mostly traditional media, though correct me if I am wrong.
If your local newspaper goes out of business who covers your local city council, school boards, etc., etc.
It would be interesting to know are the businesses that replace the ones that fail able to perform the functions of a free press in a free society? Most of us I think would agree a free press is key to a democracy.
This is not just a local restaurant or something that is going out of business but something that provides a public good. If someone will explain to me what is flowing in to take the place of the traditional media that fail, I am listening.
Cam, btw, a government bailout would not fly politically so I do not even think that idea is on the table. It does, however, bring up the important question of whether news is a public good.
Seth Godin did a couple of good posts on papers recently:
Time to Start a Newspaper
http://sethgodin.typepad.com/seths_blog/2009/01/time-to-start-a.html
and
When newspapers are gone, what will you miss?
http://sethgodin.typepad.com/seths_blog/2009/01/when-newspapers.html

By: Alan Hirsch

Alan Hirsch — Thu, 19 Feb 2009 13:17:56 +0000

The most important thing to do to keep newspapers alive is to teach people how to read. The next most important thing is to encourage people to be curious about what is happening around them. With those attributes, people will realize they will get a clearer picture of the news from newspapers than from any other source.

By: Cam Beck

Cam Beck — Thu, 19 Feb 2009 11:30:06 +0000

Neil -
I think you have to make a distinction between market failure and business failure. Business fail in a working market all the time. The market doesn’t promise that all businesses or business classes will always be successful. That’s not the point of a free market.
“If the media infrastructure set up to provide that information is collapsing then what replaces it?”
Why do we automatically presume that nothing can?

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 19 Feb 2009 03:28:36 +0000

Ah, sorry, I am tired. Above I meant the following: These are things that society needs but are not immediately profitable and some of these things clearly cannot be put wholly into the **private** sector for obvious reasons even if they were profitable.