With word today that both of Chicago’s daily newspapers are now or will soon be bankrupt, the clock is likely running on some government action on the implosion of the newspaper industry.
These are the president’s hometown newspapers and with other industries — autos, insurance, banking, and construction — all on the federal dole, the motivation to give newspapers a taste will mount.
Maryland Democrat Sen. Ben Cardin has already floated an idea to make newspapers tax exempt, if they don’t try to influence politics. John Kerry and Nancy Pelosi have both expressed concern for the industry and suggested that newspapers are too important to be allowed to fail.
Cardin’s bill may well be a jumping-off point for some move to prop up failing papers. Perhaps some sort of public-broadcasting style version of the Associated Press to provide free/cheap subsidized content, tax-exempt status, and help enforcing copyrights on exclusive content.
If Washington follows the path blazed in the auto and banking bailouts, the help would likely come with the requirement of a new approach — say the monetization of stories, profit caps, and the creation of new environmental impact standards.
It seems unlikely that GM will survive — even with the feds taking the reins and backing all the warranties. Two years, smart industry analysts expect responsible citizens Ford and Toyota to be eating GM’s lunch, even with all of of the government help — perhaps because of all of the government help.
Avoiding the creative destruction that will accompany the newspapers could mean the same thing for American news consumers the same thing that it does for those still willing to buy a GM car — less innovation and a long, slow decline in quality.
No one is sure what the world will look like after the era of the paid-subscription, big-city daily. Where will the content come from? How will advertising be sold? Who will hold local politicians accountable?
But slowing the death of the current model will push whatever the eventual solution will be further down the road. In the meantime, cash-strapped papers will continue to shrink coverage, limit content and limit their missions.
Survival alone is an unsustainable objective for a newspaper. Winning the day and shaping the communities they serve is what can keep any news enterprise alive.
