The media landscape is ever-changing, most recently in the sense that numerous newsrooms have significantly shrunk. Perhaps no company had it as bad, though, as the Los Angeles Times. The newspaper announced this week it was laying off more than 20% of its total newsroom, just months after laying off another 13%, citing monetary concerns.
Numerous financial issues have plagued the paper, and many have also blamed poor direction from the Times' billionaire owner, Patrick Soon-Shiong. But is the culling of the LA Times a problem caused by mismanagement, or is it representative of a problem in the media industry that will continue?
What did the commentators say? These layoffs are "particularly brutal," but we've seen this story before, media correspondent David Folkenflik told NPR. He noted that The Washington Post — owned by another billionaire, Jeff Bezos — also made recent cuts. This "tells you that simply having passels of money" doesn't automatically make an outlet "financially viable."
Owners were trying to make ad money when they should have been securing paying subscribers, Folkenflik said. This "really undermined legacy media, particularly print publishers."
The Times "was really only hanging on due to the 'fickle billionaire patronage' model, so these events are not exactly surprising," Jack Crosbie wrote for the Discourse Blog Substack. While some institutions may survive, "the idea of an organized institution where a group of journalists all collaboratively publish under one masthead" is disappearing.
The issues may also stem from an "ominous trend: An increasingly large percentage of Americans have come to prefer ultra-biased, sensationalist media outlets to impartial, informative newspapers," Gary Dolgin wrote in the Times.
What next? There might be a saving grace on the horizon. A proposed bill in California would tax large companies like Google and Facebook on news advertising, driving salaries for newsroom employees.
While it may be an uphill battle, this type of legislation has worked overseas. A 2021 law in Australia made Google and Facebook negotiate contracts with media outlets. A government report a year later deemed the law a success, finding that it had "enabled news businesses to employ additional journalists and make other valuable investments," per Reuters. |