Pew: Impact Of Billionaire Funded Journalism Is Tiny
Billionaire funded journalism has received a lot of media attention over the past year as EBay's Pierre Omidyar, Amazon's Jeff Bezos, and Berkshire Hathaway's Warren Buffett have invested hundreds of millions of dollars into newspapers and news sites.
Pew's "State of the Media" report this week added up all the revenues that flow into news media and found that the billionaires have made a barely measurable impact on the market amounting to just 1% out of a total market of about $65 billion a year. The majority of revenue comes from advertising.
Online advertising, however, is beset by fraud. As much as $18 billion is lost to fraudsters who put up news sites with content stolen from legitimate sites. This not only steals billions from the news industry but it reduces the value of all advertising, further compounding the losses for news media organizations.