Thursday
Sep242009
Newspaper Industry Expert Says No To Federal Bailout
Thursday, September 24, 2009 at 2:44PM
By Meagan Wiseley - University of New Mexico, Talk Radio News Service
Experts from the newspaper industry testified Thursday before the Joint Economic Committee to discuss the future of struggling newspapers and the possibility of government assistance.
Committee Chair Carolyn Maloney (D-N.Y.) introduced the Newspaper Welfare Act last week which would allow local newspapers to operate as non-profit entities while still generating advertising revenue.
John Sturm, President and CEO of The Newspaper Association of America, said that while he does consider the bill to be a step in the right direction, he does not believe the legislation is a "comprehensive solution to the problems in the industry at this time."
"The newspaper industry is not seeking a financial bailout or any other kind of special subsidy. We don't believe direct government financial assistance is appropriate for an industry whose core mission is news gathering, analysis and dissemination," said Sturm.
Competition with internet-based news services, the loss of nearly 40 percent in advertising revenue and the current economic recession have all taken a major toll on the newspaper industry.
Sturm added, "the [newspaper] industry is working on a variety of solutions to address these issues...[and] we expect that these solutions will be in the marketplace within the next six months."
Experts from the newspaper industry testified Thursday before the Joint Economic Committee to discuss the future of struggling newspapers and the possibility of government assistance.
Committee Chair Carolyn Maloney (D-N.Y.) introduced the Newspaper Welfare Act last week which would allow local newspapers to operate as non-profit entities while still generating advertising revenue.
John Sturm, President and CEO of The Newspaper Association of America, said that while he does consider the bill to be a step in the right direction, he does not believe the legislation is a "comprehensive solution to the problems in the industry at this time."
"The newspaper industry is not seeking a financial bailout or any other kind of special subsidy. We don't believe direct government financial assistance is appropriate for an industry whose core mission is news gathering, analysis and dissemination," said Sturm.
Competition with internet-based news services, the loss of nearly 40 percent in advertising revenue and the current economic recession have all taken a major toll on the newspaper industry.
Sturm added, "the [newspaper] industry is working on a variety of solutions to address these issues...[and] we expect that these solutions will be in the marketplace within the next six months."
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