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The meat: As newspapers go digital, their business model erodes. A 2008 research report from Sanford C. Bernstein & Company explained, “The notion that the eno

The meat: As newspapers go digital, their business model erodes. A 2008 research report from Sanford C. Bernstein & Company explained, “The notion that the enormous cost of real news-gathering might be supported by the ad load of display advertising down the side of the page, or by the revenue share from having a Google search box in the corner of the page, or even by a 15-second teaser from Geico prior to a news clip, is idiotic on its face.” [...] Aside from providing stability, an endowment would promote journalistic independence. The best-run news organizations insulate reporters from pressures to produce profits or to placate advertisers. But endowed news organizations would be in an ideal situation — with no pressure from stockholders or advertisers at all. How large an endowment would a newspaper need? The news-gathering operations at The New York Times cost a little more than $200 million a year. Assuming some additional outlay for overhead, it would require an endowment of approximately $5 billion (assuming a 5 percent annual payout rate). Newspapers with smaller newsrooms would require smaller endowments.

anamax 18y ago
> But endowed news organizations would be in an ideal situation with no pressure from stockholders or advertisers at all. Endowed organizations face pressures too. Maybe they're better pressures, but an account that fails to acknowledge that they exist doesn't strike me as one that is particularly trustworthy. As to the "enormous cost of newsgathering", didn't a past thread have staffing numbers for the NYT? IIRC, out of some 10k employees, 350 were reporters. At $300k/person, we're talking $100M. Since that 350 includes sports, society, and other fluff.... (Of course, sports pays its way.)
- gravitycop 18y ago
  Endowed organizations face pressures too. Yes. This (from Page 2 of the NYT article) is one of the many paragraphs I left out of my excerpt: http://www.nytimes.com/2009/01/28/opinion/28swensen.html?pagewanted=2&_r=1 http://www.nytimes.com/2009/01/28/opinion/28swensen.html?pag... One constraint on an endowed institution is the prohibition in the same law against trying to “influence legislation” or “participate in any campaign activity for or against political candidates.” While endowed newspapers would need to refrain from endorsing candidates for public office, they would still be free to participate forcefully in the debate over issues of public importance. The loss of endorsements seems minor in the context of the opinion-heavy Web.
anamax 18y ago
"The notion that the enormous cost of real news-gathering might be supported by the ad load of display advertising down the side of the page, or by the revenue share from having a Google search box in the corner of the page, or even by a 15-second teaser from Geico prior to a news clip, is idiotic on its face." The news-gathering operations at The New York Times cost a little more than $200 million a year. According to http://phx.corporate-ir.net/phoenix.zhtml?c=105317&p=irol-pressArticle&ID=1249232&highlight= http://phx.corporate-ir.net/phoenix.zhtml?c=105317&p=iro... "For the year, the Company’s Internet revenues increased 6.5 percent to $351.7 million from $330.2 million in 2007, and Internet advertising revenues increased 9.3 percent to $308.8 million from $282.5 million." In other words, internet revenues can cover the news-gathering costs. (It doesn't cost $150M to run the websites.) I wonder how much they paid Sanford C Bernstein and Company for that report.

anamax 18y ago

> But endowed news organizations would be in an ideal situation with no pressure from stockholders or advertisers at all. Endowed organizations face pressures too. Maybe they're better pressures, but an account that fails to acknowledge that they exist doesn't strike me as one that is particularly trustworthy. As to the "enormous cost of newsgathering", didn't a past thread have staffing numbers for the NYT? IIRC, out of some 10k employees, 350 were reporters. At $300k/person, we're talking $100M. Since that 350 includes sports, society, and other fluff.... (Of course, sports pays its way.)

gravitycop 18y ago
Endowed organizations face pressures too. Yes. This (from Page 2 of the NYT article) is one of the many paragraphs I left out of my excerpt: http://www.nytimes.com/2009/01/28/opinion/28swensen.html?pagewanted=2&_r=1 http://www.nytimes.com/2009/01/28/opinion/28swensen.html?pag... One constraint on an endowed institution is the prohibition in the same law against trying to “influence legislation” or “participate in any campaign activity for or against political candidates.” While endowed newspapers would need to refrain from endorsing candidates for public office, they would still be free to participate forcefully in the debate over issues of public importance. The loss of endorsements seems minor in the context of the opinion-heavy Web.

anamax 18y ago

"The notion that the enormous cost of real news-gathering might be supported by the ad load of display advertising down the side of the page, or by the revenue share from having a Google search box in the corner of the page, or even by a 15-second teaser from Geico prior to a news clip, is idiotic on its face." The news-gathering operations at The New York Times cost a little more than $200 million a year. According to http://phx.corporate-ir.net/phoenix.zhtml?c=105317&p=irol-pressArticle&ID=1249232&highlight= http://phx.corporate-ir.net/phoenix.zhtml?c=105317&p=iro... "For the year, the Company’s Internet revenues increased 6.5 percent to $351.7 million from $330.2 million in 2007, and Internet advertising revenues increased 9.3 percent to $308.8 million from $282.5 million." In other words, internet revenues can cover the news-gathering costs. (It doesn't cost $150M to run the websites.) I wonder how much they paid Sanford C Bernstein and Company for that report.