How Revenue Sources Can Affect Trust in News

All newspapers are, at their heart, a business. Therefore they require a certain level of funding to continue circulating. Several costs come with running these companies, and to stay afloat, a news organisation will have several options to pay expenses.

Some newspapers are run by the government. As such, they are paid for by the state in question. This will mean, that as long as the economy of a country is healthy, then the newspaper will have no financial difficulty.

However, this method will call into question the validity of the newspaper. If the government is paying for it, then it seems unlikely that the news organisation will be permitted to report any stories that give their sponsors a negative image. Therefore, government-sponsored papers are considered unreliable as a news source.

Often readers can determine the editorial independence of a newspaper by researching its funding methods. Just because an organisation has no advertisement or government sponsorship, it does not necessarily mean that it can be trusted. There are other ways that the freedom to report can be suppressed.

This can be seen in news organisations that are run by wealthy individuals. These people independently fund companies, using their own personal money. The issue is that the political stance of the organisation will often be dictated by these individuals. In recent years, we have undoubtedly seen a number of these news organisations being used to promote the interests of billionaires. Other times, they are a tool to influence political opinion, in times of elections and referendums.

Biased journalism is becoming a significant issue in the world of up-to-date news. Sometimes, members of a political party will fund a news organisation to influence how they are represented. The organisations need to both find a sustainable funding source and maintain reliability and trust with its readership.