Excellent must-read on the fate of newspapers and news gathering

Long, but worth a read: http://www.american.com/archive/2009/february-2009/preparing-the-obituary

Essentially, the news was turned into a commons, and everyone was invited to drop in a fishing line and hook some advertising dollars. The problem is not that an advertising model cannot support the production of news content: pre-Internet, the industry had revenues of $1000 per subscriber, 80 percent of it from advertising, and the Internet can provide a vastly improved product. The problem is that no mechanism exists to channel the ad dollars back into the news production enterprises. So, inevitably, more and more people will launch their boats onto the ocean of content, and rising resources will be devoted to competitive efforts to attach advertising to that $14 per subscriber worth of AP content.
However, the whole structure of Internet sites still relies on the newspaper industry, including the AP. Since the newspapers support the wire services, the more the content leaks out the more they are supporting their competitors’ free ride, and the more they enable the entry of still more competitors for the advertising dollars.