White knights for red-ink media

WHITE KNIGHTS FOR RED-INK MEDIA
[SOURCE: The Christian Science Monitor, AUTHOR: Dante Chinni, Project for Excellence in Journalism]
[Commentary] The newspaper industry is looking for a savior. After years of falling circulation, slumping ad revenue growth, and stumbling stock prices, we are now at that scene in the movie where things are heading south and everyone is wondering if and when a hero will show up. And while heroes are in relatively short supply these days, some in the industry think they might have found a white knight in local ownership. The storyline goes something like this: A wealthy pillar of the community buys the local paper, makes quality his goal, grows the staff, and brings back readers. But local owners may still have to borrow money, and industry experts say banks and other financial institutions who can invest elsewhere won't lend big sums in the name of charity. Also, local ownership may entail more local conflicts of interest and sacred cows - after all that's what it means to be a member of the community. And the limited resources of local owners could be a problem, too. They may not be as able to ride out regional economic swings as a chain might. The truth is there are good and bad owners in the newspaper industry among the big corporations and local individuals out there. And yes, a good one that wants to invest in quality can make all the difference. But the newspaper industry's problems at this point are a tangled mess. They range from Internet competition to sprawling metropolitan areas that are almost impossible to cover properly to the demise of local stores that used to buy ads. So no matter what anyone wishes, lone heroes riding in to save the day are likely to remain the stuff of matinees, not newsrooms.
http://www.csmonitor.com/2007/0109/p09s02-codc.html