The MSM has bumped up against the internet – and lost.
Clay Shirky called it a while ago in Here Comes Everybody: The Power of Organizing Without Organizations
but big media, if they wish to make the leap to to Web 2.0 life, have to leverage the one thing they do better than everyone else, original investigative reporting, that’s where they create value. Instead they are looking for government protection, subsidies or both.
Rupert Murdoch envisions a walled garden strategy but news has a brief shelf life. A high price on all content is a barrier to entry for older news items that just interest a few people. A flat rate drives down their market share for attention, their traffic and in turn, the market value of all the content they own. A sliding scale would be needed that rapidly discounts toward free as public attention on a news item waned.
Right now the media are like a brontosaurus that has just realized it waded into a tar pit.