New business models for news are not that new

With online ad revenue down for the second quarter in a row and newspaper industry indicators suggesting that 2008 is going be the worst year yet, the frenzy continues for a new business model for news publishing that will magically boost revenue and stop the financial bloodletting. But innovation is sorely lacking in the new business models proposed; the truth is that many of them have been around since the early 1900s. In 1923, historian James Melvin Lee outlined in his History of American Journalism alternative business models that newspapers had tried to remove themselves from dependence on advertisers and circulation growth and that now seem strangely prescient: the endowment model, the municipal news model, an adless newspaper, religious news, and what can only be called the "bazooka gum" approach to circulation.