Steve Coll, who spent 20 years working at the Washington Post, proposed introducing a non-profit model for newspaper operation in the ideas section of the New Yorker Jan. 28.
The newspaper industry has suffered from declining ad and subscription rates due to the economic downturn and proliferation of online information. In response, newspapers have cut down on staff, foreign bureaus, circulation and the size of their issues.
Coll suggests raising endowments to operate newspapers so that, released from the pressures of having to generate revenue from ads and circulation to sustain themselves, newspapers could more freely pursue stories and retain full editorial autonomy.
The New York Times, owned by the New York Times Company, runs a yearly deficit that’s subsidized by the company’s other units. The Times has won 96 Pulitzer Prizes and Citations for journalism, more than any other American newspaper.
Although the non-profit model works well theoretically, it would be difficult to realistically implement.
Coll writes that the Post requires a $2-billion endowment to sustain its operations indefinitely; a figure representing roughly five per cent of its owner’s net worth.
If the newspaper manages to find someone, or a group of individuals, willing to contribute such a huge amount, it’s unlikely the endowment would be given without an expectation of some control over the newspaper’s editorial content.
Fighting accusations of partisanship reflects badly on newspapers as a whole and is just as detrimental to the industry as falling ad revenue.
If donors do relinquish full editorial control, however, an endowment system would allow newspapers to pursue more in-depth stories, revive their foreign bureaus—giving them first-hand access to international news—and free them from the ups and downs of the advertising market.
But operating on endowments isn’t a foolproof way of avoiding the recession, as universities—which run on endowments—have recently proven.
If a non-profit model allows extended coverage, newspapers would have to take care to remain relevant in their coverage.
It’s heartening that Coll, and others in the newspaper industry, are seeking creative measures to revive the industry. Whether or not newspapers are run for profit, continued ability to the public and integrity should be at the top of their priorities.
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