Proceedings of the 8th International Conference on Advanced Research in Management, Business and Finance
Year: 2024
DOI:
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The Role of Private Funding for Public Goods in a Competitive Market: Advancing the Diversity, Quality, and Innovation of News Reporting
Olivia Lu
ABSTRACT:
This research investigates the role of private funding in supporting diverse, high-quality, and innovative journalism across Africa, Europe, and the United States. Using the Diverse Case Study methodology, this paper argues that while news serves as a public good in democratic societies, relying solely on tax-based funding is not optimal. Instead, a diverse market-driven funding approach of private philanthropy, subscriptions, and advertising revenue is preferable, as it incentivizes innovation and high standards in news reporting while mitigating media bias. A series of case studies reveal that private funding fosters a competitive news ecosystem, encouraging diversified, in-depth, and quality content across platforms. This analysis incorporates public and private goods models to reveal how a predominantly private funding model, while not without risks, ultimately encourages a plurality of news sources and innovation by enabling news organizations to cater to specific audience interests and adapt quickly to changing market demands. While limited public subsidies may sometimes be necessary to ensure equitable access, a generally free-market approach to news provision helps maintain a diversity of perspectives, enabling consumers to verify information and identify biases. Furthermore, the integration of digital tools and new revenue models, such as subscriptions and paywalls, aids media outlets in innovating in a competitive digital landscape. This paper concludes that while some level of government intervention may help bridge access gaps, the privatized funding model more effectively meets the needs of a democratic society by supporting independent, high-quality journalism and boosting media adaptability in a rapidly evolving information economy.
keywords: free-market; investment; journalism; revenue; variety