"If it were left to me to decide whether we should have government without newspapers or newspapers without government, I should not hesitate a moment to prefer the latter."
It seems clear to me that the media is at the core of democracy, but, as in other areas of the real economy, monopolies seldom act for the benefit of customers or, in the case of News Corp, for the benefit of democracy. So, the emergent political will to stand up against the real or imagined power of News Corp is probably a good thing.
But Interactive Democracy offers a whole new necessity for news. Based on the demand for newspapers in Switzerland, I would expect that the introduction of ID would be a boon for newspapers. Perhaps then they wouldn't feel the need to snitch and snicker about celebrities' personal lives in order to fund their existence.