"Although advertising revenue largely sustained the news media in the 20th century, it's been harder to come by in the digital age. News media outlets just aren't as important these days for advertisers when they can reach potential customers so many other ways, including through social media. Some news outlets are relying more on subscription revenue. But that can also be a tough sell when readers have so many alternatives - often free - finding news, if they're even looking for it at all."
"Increasingly, local news media outlets are adopting nonprofit models to be able to obtain grants from foundations and donations from individuals as new revenue sources. At the same time, some nonprofit news leaders have avoided selling ads because the IRS has said their organizations would have to pay taxes on that revenue. They have also heard that selling too many ads might jeopardize their tax-exempt status altogether."
Advertising revenue that sustained news media in the 20th century has declined in the digital age as advertisers use social media and other channels. Subscription revenue is growing but often struggles because readers have many free alternatives. Local news outlets increasingly adopt nonprofit models to access foundation grants and individual donations. Many nonprofit news leaders still depend heavily on foundations and donors despite encouragement to diversify into earned revenue. Concerns about IRS taxation and potential threats to tax-exempt status make some nonprofit leaders avoid selling ads, producing mixed feelings about ad-based revenue.
Read at Nieman Lab
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