Information Subsidies

The term information subsidies refers to the process of providing news stories, reports, facts, or other forms of information or intellectual capital to reporters or gatekeepers, with the intention of affecting the perceptions or actions of readers, viewers, or recipients of the information. This information is subsidized by the producer, typically making it less costly to the user than it would be were the user to gather it on his or her own. In turn, the subsidizing agency generally expects to gain a higher degree of influence or power over information consumers as well as advantage over competing information sources than would ensue were they not to provide the subsidy. Information subsidies are particularly important for science and technology news.

The value of subsidized information depends on two factors: how it may reduce the uncertainty in future decision making and how useful, credible, [Page 401]or reliable the source is judged to be. Information subsidies are valuable commodities because they reduce the amount of time and expense that reporters would otherwise spend gathering information. Information subsidies also provide opportunities for corporations, governments, or other entities to present their positions and thereby are involved directly in the news-making process. The process of wielding influence through the provision of information subsidies has been described as agenda building.

In 1982, Oscar Gandy defined an information subsidy as an effort to influence others by providing information in a controlled manner at a lower cost than were users to collect it themselves. Researchers have suggested that anywhere from 15% to 80% of news content is derived from information subsides. Nevertheless, debate continues as to the degree to which information subsidies influence reporters and gatekeepers and to how they affect media content.