• The New York Times, Friday, January 29, 2010 12:11 AM

Government subsidies have been crucial to American newspapers and magazines for more than two centuries, even if most journalists and readers don't realize it, according to a new report by the Annenberg School for Communication and Journalism at the USC. Government support for newspapers and magazines has fallen from more than $4 billion in 1970, to less than $2 billion.

Since 1792, publications have enjoyed discounted postage rates, but over the last 40 years, it's whittled down from 75% to 11%, a difference of about $1.7 billion in today's dollars. Local, state and federal laws require governments to publish notices - in effect, buying newspaper ads. But there is a growing movement to put such notices on their own Web sites. Value: $1 billion. Final category: special tax treatment for publications, like reduced sales tax rates on paper and ink. The tax breaks are worth at least $900 million.

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