Reassessing the Future of Journalism

It seems I will need to formulate some solid answers to these pressing questions soon, as I’m scheduled to teach a course on news business models at Northeastern University next year. This isn't my first attempt at enlightening aspiring journalists about the challenges they face in the industry; I taught a similar course two decades ago at UC Berkeley’s Graduate School of Journalism. Back in 2003, social media was nonexistent, and although print media was declining, it hadn’t yet reached a state of total collapse.

Since then, over 25,000 journalism positions have vanished from local newsrooms. As this trend escalated, I have either launched or invested in more than a dozen news-related ventures, none of which significantly impacted the landscape. Finding reliable backing for innovative journalism remains a daunting task. While there are instances of success in what can broadly be termed “news,” very few relate specifically to “hard news”—the daily grind of beat reporting.

Section 1.1 Exploring Potential Solutions

What steps can be taken to address these challenges? As anticipated, there are no straightforward answers. Here are several strategies that news organizations are exploring, all complicated by a significant truth: when people express a desire for the truth, they often seek a version that aligns with their biases, leaving limited space for objective reporting.

1. Pursue a For-Profit Model

Historically, most newsrooms have relied on this funding model. In an era when news outlets monopolized audience attention and could secure both advertising and subscription revenue, this approach thrived. However, the Internet has fractured the information landscape. Consumers stopped paying for content that was freely available online, and advertising dollars shifted to platforms like Instagram and Google. Digital publications have attempted to adapt by diversifying their offerings—embracing events, commerce, and soft news—but excelling in these areas remains a challenge for those primarily focused on hard news.

2. Target Niche Markets

A viable strategy in today’s post-digital landscape is to cater to a specific audience willing to pay for specialized reporting, alongside niche advertisers. This approach has been successfully adopted by outlets like The Information, which covers technology, and Skift, which focuses on travel. However, industry-focused sites often face challenges, including potential biases stemming from close relationships with their sectors.

3. Utilize Substack and Similar Platforms

Independent journalism has found success at the micro-niche level through platforms like Judd Legum's Popular Information and Heather Cox Richardson's Letters from an American. However, these newsletters can invite allegations of bias as they often cater to a particular audience. Furthermore, scaling up these one-person newsrooms presents its own set of challenges.

4. Government Funding

In many liberal democracies, government funding has been established to support journalistic efforts, primarily in broadcasting. Examples include the UK’s Television License, which has been implemented in various European nations and beyond. Advocates like Steven Waldman argue that investing in local journalism could yield substantial returns by uncovering corruption and fraud. Nonetheless, achieving bipartisan agreement on government-supported journalism in the U.S. seems unlikely.

5. Philanthropic Support

In the absence of government action, funding for innovative journalism often relies on philanthropists motivated by a complex mix of altruism and ambition. This model has enabled organizations like Report for America to support hundreds of local journalists. However, depending on wealthy benefactors poses its own risks, including potential conflicts of interest.

6. Corporate Responsibility

If journalism is deemed essential for democracy, and democracy is crucial for stable economies, then corporations should be encouraged to support journalism as part of their corporate social responsibility. However, given the current political climate, it’s unlikely that Fortune 500 companies will risk alienating polarized audiences by endorsing journalism.