CCompare and contrast: what happens in the United States when tough economic conditions and growing competition from other media hit the free-to-air television industry? They cut back and rethink their product. Yesterday, one of the doyens of mainstream, respectable “old’ media ABC News, revealed plans to slash 25% of its existing workforce. Reports said the cuts would happen in the US and internationally among ABC’s 1500 news employees.

Rival CBS revealed plans to cut “dozens’ of employees from its own news division a few weeks ago.

ABC News president David Westin told his staff the cutbacks were a “fundamental transformation” for the division that would result in a leaner, smaller organization” and said “these are forces larger than any of us — business forces, just the realities of broadcast versus digital, as well as financial forces, given the advertising market.”

What have our free-to-air networks done to transform themselves in the face of difficult economic conditions? Well, they’ve boned a few executives. They’ve tried a half-baked attempt to merge their Press Gallery bureaux. They’ve moved some newsreaders around. And they’ve done what they always do, which is run to the Federal Government for help, confident they’ll get it.

Meantime, the Australian newspaper industry, which is facing up to similar problems to the US networks, is left to get on working out how to adjust its business model and cut costs to deal with the “business forces” and “financial forces” that confront them.

Who needs to make hard-nosed business decisions when the taxpayer will look after you?