FTC runs defense on ‘How Will Journalism Survive the Internet Age?’
Saturday, June 5, 2010 at 12:17PM By Kay B. Day
The reporters' gallery of the House of Representatives in Washington, D.C., 1868/ sketched by Theodore R. Davis for Harper’s Weekly. [V. 12, no. 584 (1868 March 7), p. 145.] [Image from LOC digital collection.]The Federal Trade Commission will hold a series of taxpayer funded workshops June 15 at The National Press Club in Washington to tackle the question, ‘How Will Journalism Survive the Internet Age?’ The FTC has already issued a ‘staff discussion draft’ comprising “proposals and public comments articulated during previous panel conversations and in reports and articles about the future of journalism.”
As the blogosphere buzzed over possible repercussions of expanding federal intrusion into media, the government issued a news release the FTC said ‘corrects misinformation’ on the workshops.
The FTC news release explained the draft, “[T]hrough this document, we seek to prompt discussion of whether to recommend policy changes to support the ongoing reinvention of journalism, and, if so, which specific proposals appear most useful, feasible, platform-neutral, resistant to bias, and unlikely to cause unintended consequences in addressing emerging gaps in news coverage.”
And the FTC emphatically added: “The FTC has not endorsed the idea of making any policy recommendation or recommended any of the proposals in the discussion draft. “
There are a number of radical ideas in the draft. Among them are new taxes on electronic devices, creating a new type of nonprofit status for some news organizations, a 3 percent tax consumers would pay on cell phones each month, a 2 percent sales tax on advertising, a 5 percent tax on consumer electronics, and most controversial of all, a ‘News AmeriCorps.’
One suggestion involves yet another fee, more appropriately termed a tax: “Thus, this speaker suggests amending the copyright laws to create a content license fee (perhaps $5.00 to $7.00) to be paid by every Internet Service Provider on each account it provides.”
The government already controls sizable news entities such as the Corporation for Public Broadcasting, PBS, the Voice of America and the website America.gov, a site whose conceptual appearance is similar to sites operated by governments in countries such as Iran. America.gov content comes close to propaganda in some ways although links to portals of various government agencies are also included.
Those government entities are all funded largely by the taxpayer although some local affiliates of PBS raise private funds for special projects. Besides those entities, organizations such as the National Endowment for the Arts distribute millions of taxpayer dollars to academic nonfiction writers, poets and to creators of radio and television programs among others.
Some conservatives and libertarians question the validity of any taxpayer funding going to the arts and news organizations, other than those that distribute utilitarian information about taxes, legislation, health, immigration, defense and other relevant matters.
The question of abridging freedom of the press protected by The US Constitution will surely arise. If government controls funding, licensing or other aspects of media, will that not abridge the abilities of those who gather and disseminate news outside the government bureaucracy? Some believe the government has already overstepped boundaries.
Many independent publishers like The US Report face serious challenges over revenue. Third party ads pay a paltry sum and even if quality content is provided, most website visitors do not want to contribute to the costs. Yet the arena operates as a free market at present and as large media entities move to pay models, this should have a trickle down effect on indie blogs and websites. Indie operators also have options for product sales—books, white papers, even t-shirts and coffee cups as well as potential for selling ads directly to sponsors.
An editorial at The Washington Times likened one suggestion for a tax to a “Drudge Tax.” The editorial said, “Self-respecting journalists must reject this tempting government bribe as the FTC brings its proposals to a round-table discussion scheduled for June 15. When it comes to the media, consumers lose most when government suppresses innovation in the name of ‘saving old business models.'”
The FTC workshop will be broadcast on the Web. The government site said the link will be posted the day of the event. Those who wish to attend the journalism workshops in person should arrive early for screening. Admission is free.