A related point is raised at The Economist, "A special report on the news industry: Bulletins from the future." There's a huge graphic at that link, and some background information, and then this summary:
Clearly something dramatic has happened to the news business. That something is, of course, the internet, which has disrupted this industry just as it has disrupted so many others. By undermining advertising revenue, making news reports a commodity and blurring the boundaries between previously distinct news organisations, the internet has upended newspapers’ traditional business model. But as well as demolishing old ways of doing things, it has also made new ones possible. As patterns of news consumption shift, much experimentation is under way. The internet may have hurt some newspapers financially, but it has stimulated innovation in journalism.And check GigaOm for an analysis with lots of links to The Economist's report: "Back to the future: Is media returning to the 19th century?" This one, from The Economist, gets to the nub of things, "Coming full circle: News is becoming a social medium again, as it was until the early 19th century—only more so." And from the conclusion there:
The biggest shift is that journalism is no longer the exclusive preserve of journalists. Ordinary people are playing a more active role in the news system, along with a host of technology firms, news start-ups and not-for-profit groups. Social media are certainly not a fad, and their impact is only just beginning to be felt. “It’s everywhere—and it’s going to be even more everywhere,” says Arianna Huffington. Successful media organisations will be the ones that accept this new reality. They need to reorient themselves towards serving readers rather than advertisers, embrace social features and collaboration, get off political and moral high horses and stop trying to erect barriers around journalism to protect their position. The digital future of news has much in common with its chaotic, ink-stained past.Be sure to read that whole thing. Arianna Huffington's point is especially interesting, considering how well she's made out with new media. But most important is how everyday people are producers of news. That's one of great things about blogging. I like sharing my life and politics and sometimes I've not only offered original reporting on the news, but I've also become part of the news.