I have really appreciated all of the contributions to this thread. As Dan
Rather has been pointing out on his Facebook page, few things are likely to
be more important over the next few years than a resurgence of journalistic
resources, skill and courage.

This is important enough that I think it worth summarizing and restating
what the WaPo case *could* mean for the near future. What several have
pointed out here so well is the baseline or current context for news:
Technological changes have had the newspaper business on the ropes for a
while now, and the Great Recession almost delivered a knockout blow, that
most papers have still not recovered from. In 2015 US newspapers suffered a
7% decline in circulation, the worst single year decline since 2010 (this
and other facts related to this discussion from the very helpful Pew “State
of the News Media 2016” summary - most recent data 2015):

http://www.journalism.org/2016/06/15/state-of-the-news-media-2016/

TV news is better off than newspapers, but only relatively. Cable news
audiences were up 8%, network news about flat (local news down 5% at
night). Ad revenue for cable (10%) and network(6%) tv news was also up.
2015 was not an election year, but they classify it as a “primary year”,
and there was some improvement over the previous primary year as well -
though this may be the Trump effect.

It is against this backdrop that we get the news at the end of 2016 that
the WaPo is actually significantly increasing its newsroom staff (again,
that was an 8% increase for 2017, compared to a 10% cut industry wide in
newsroom jobs in 2014). Yes - perhaps Bezos is overplaying a good election
year Trump Bump; perhaps anything more than that is unique to the WaPo’s
local industry being of national importance. Perhaps Bezos’ financial
autonomy makes his case non-generalizable to more corporate settings, where
profit targets have to be met and put into executive compensation and
investor returns, not reinvested in the product (these are all good points
contributors to this thread have made). But maybe (again, this is by way of
a spark of hope, not a QED), just maybe, Bezos’ formula is onto something,
which can be applied by other papers, and in TV News.

The formula again has, I think, three parts:
1) Investing in (and then delivering) quality, original journalism -
especially investigative journalism.

2) Delivering high demand features and general interest (gossip) news in a
package attractive to internet consumers, especially young adults, but with
limited bleed-over to the hard news.

3) Charging a relatively small fee for annual subscriptions ($36/year)
after a liberal free trial period. This is consistent with the long term
newspaper model of the daily paper being a cheap and essential commodity,
affordable by even low wage earners. Unless you are the Wall Street
Journal, which I guess has some legitimate other interests in its model, I
think you want a lot of people paying a little for your paper, not a few
people paying a lot. When I was in grad school I paid about $26/month in
inflation adjusted terms for the LA Times at the newsstand (including the
Sunday paper) - that is $312/year. If other news sources used the WaPo
model, I could subscribe to the WaPo, NYT, LAT, and my small local paper
and still be at half the cost.

Again the headline here is not that Bezos is willing to lose money with
this approach on a bet that it will pay off later; the headline is that
using this formula, he has already turned a profit, and is doubling down
for 2017.

Yes, there are lots of people who only want confirmation of their own
biases, or gratification of their titillation needs, from their news. But
my sense, consistent with both the WaPo case, and the stunning popularity
of Dan Rather’s FB page itself, is that there is still, and perhaps
growing, a real demand out there for actual news, not bias-free, but
competent and credible. I don’t pretend that credible news is the pathway
to maximum profit for media conglomerates, but I no longer accept the
assumption that it is not possible to make a fair profit reporting credible
news, if that is the business you are committed to.

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