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To be blunt, I'm a lot more likely to pay for a feed into the citizen journalism network I'm a member of than I am for one of Murdoch's sites.
There are plenty of ways to handle distributed networks reporting news, with various trust models. Croudsourcing of this sort needs a good mathematician setting it up to resist malicious attacks, sure, but there's nothing that complex about it. You can also use public sources as inputs to avoid the issue of community-bias.
(There are also ways to recombine news using "reflections" off blogs, but as far as I know that paper's still unpublished so I won't discuss details)
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