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In my opinion the internet has been very damaging to quality journalism.
You have already mentioned that numbers of staffing is decreasing. This results in fewer journalists at work today compared to back in the days, when the internet has not been relevant yet. This shrink does not only limit coverage, but also reduces quality. Reporters have to meet numerous deadlines of online publishing.
Research found that fundamental values of journalism are changing. Standards are loosening and carelessness increases. The need for speed and immediacy does not allow thorough work anymore. ( http://tinyurl.com/pwuvsmk )
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