FTC draft study proposes massive bailout of newspapers

American Thinker | June 5, 2010
Joseph Smith

The FTC has issued a discussion report on rescuing the failing newspaper industry, labeled as "The Reinvention of Journalism," Fox News reports.

An NYU journalism source speaks for critics of the FTC draft:

The problem with this is that the FTC is trying to set an agenda here, that some sort of government intervention is necessary. It's a power grab by the FTC and it's also an example of one old power structure circling its wagons around another.

The FTC draft covers the well-trod ground of declining newspapers, the rise of the internet and the concern that a sustainable business model for newspapers is not on the horizon.

Just before leaping into the waters of government-knows-best intervention, the FTC authors ask a series of rhetorical questions:

How susceptible is the proposal to creating bias - in terms of news platforms or government interference? How likely is the proposal to create unintended consequences?

Uh, well, let me count the ways...

The FTC rescue proposal includes changes in copyright and anti-trust laws:

· Tighten copyright law on news aggregators and fair use restrictions

· Strengthen laws on the "hot news doctrine" whereby facts gathered at considerable expense are protected from "free-riding"

· Expand antitrust exemptions to allow news organizations to jointly agree to build copyright or licensing walls

New funding sources suggested include:

· Expand the copyright office to enforce a license fee on content downloads, similar to that in the recording industry

· Increase funding for public broadcasting

· "Establish a ‘journalism' division of Americorps," complete with cub reporters on the government payroll

· Add a tax return check box, a fund for local news, increased postal subsidies and university grants for investigative journalism

Naturally there are a slew of new tax proposals, including taxes of five per cent on consumer electronics, seven per cent on broadcast spectrum, two per cent on advertising sales and three per cent on cell phone ISPs. The draft estimates those taxes combined would raise $20 billion or more annually.

Full article here