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Goodbye to the Age of Newspapers (Hello to a New Era of Corruption)

If your like your daily newspaper - that is assuming it is still being published daily, or at all - then this sobering piece by Paul Starr, professor of communications and public affairs at the Woodrow Wilson School at Princeton University and the author most recently of Freedom's Power (Basic Books) published in New Republic, makes for sobering reading:

"We take newspapers for granted. They have been so integral a part of daily life in America, so central to politics and culture and business, and so powerful and profitable in their own right, that it is easy to forget what a remarkable historical invention they are. Public goods are notoriously under-produced in the marketplace, and news is a public good--and yet, since the mid-nineteenth century, newspapers have produced news in abundance at a cheap price to readers and without need of direct subsidy. More than any other medium, newspapers have been our eyes on the state, our check on private abuses, our civic alarm systems. It is true that they have often failed to perform those functions as well as they should have done. But whether they can continue to perform them at all is now in doubt.

Even before the recession hit, the newspaper industry was facing a mortal threat from the rise of the Internet, falling circulation and advertising revenue, and a long-term decline in readership, as the habit of buying a daily paper dwindled from one generation to the next. The recession has intensified these difficulties, plunging newspapers into a tailspin from which some may not recover and others will emerge only as a shadow of their former selves. The devastation is already substantial. At the Los Angeles Times, the cumulative effect of cutbacks has been to reduce its newsroom by one-half--and that was before its parent company, Tribune, declared bankruptcy. Another company weighed down by debt, the McClatchy chain, which includes The Sacramento Bee, The Miami Herald, and twenty-eight other dailies, has laid off one-quarter of its workforce in the past year; according to one executive, the editorial downsizing is under 20 percent but is now cutting "close to the bone." And highly leveraged media companies are not the only ones that are retrenching. At the largest daily in New Jersey, The Star-Ledger, 45 percent of the editorial staff took buyouts in October when the owner, Advance Publications, threatened to sell the paper if its targets for cuts were not met.

Newspapers are also shrinking in numbers of pages, breadth of news coverage, features of various kinds, and home delivery of print editions. All over America, as newspaper revenues plummet--by the end of 2008, ad sales were down about 25 percent from three years earlier--publishers cannot seem to shed editors, reporters, and sections of their papers fast enough. And there is more pain to come. According to a December forecast by Barclays Capital, advertising revenue will drop another 17 percent in 2009 and 7.5 percent more the year after. Even The New York Times, which has seen its cash reserves fall and its debt downgraded, is unlikely to escape the massive contraction now accelerating throughout the industry."

Continue reading this worthwhile piece here.

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