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Studies in Communication Sciences 17.1 (2017), pp. 99–106

The ripple effects of a partisan, free : Hayom as disruptive media actor Michael Dahan*, Sapir College, Public Policy and Administration and the School of Communication Mouli Bentman, The Hebrew University of Political Science AND Sapir College, Public Policy and Administration *Corresponding author: [email protected]

Abstract During its 10 years of existence, the free newspaper (Israel today) has come to play a pivotal role in national politics and to serve as what we define as a disruptive media actor among other, commercial, daily in Israel. The seemingly innocuous daily newspaper, founded in 2007 and distributed widely, has, since 2011, become the most widely read newspaper in Israel. We suggest that Israel Hayom be viewed as a “disruptive” actor in the areas of politics and the media in Israel. Adapted from Christensen’s (1997) concept of disruptive technology or innovation, we define as disruptive a media actor that significantly impacts the field of politics and media economy, essentially forcing a change, or changes, in the “rules of the game”. While this model is currently unique to Israel, it is likely that under similar condi- tions further cases shall present themselves in the future.

Keywords Israel Hayom, Israel, free newspaper, disruptive media actor, democracy

“Men, such as they are, very naturally seek money or power; and power because it is as good as money.” Ralph Waldo Emerson, 1837

1 Introduction sis of 2008, which led to a dramatic drop in the distribution of free newspapers along Over the last 20 years, free newspapers with the closure of many (Bakker, 2013). As have played a crucial and important role Bakker notes in relation to the printed press, challeng- ing existing press models and breathing “Free newspapers seem to follow a typical life life into a troubled sector. In an era where cycle pattern, moving from growth to maturi- print media is struggling to survive, the ty, and to saturation and decline.” (ibid, p. 1) free press helped expand newspaper dis- tribution in general. The primary business In this paper we present an alternative model: a “slim” editorial board with few model of free newspapers which has reporters, generally fewer pages, articles enjoyed success in Israel. Israel Hayom drawn largely from press agency reports (owned and controlled by American bil- and the international press, with profit lionaire ) is not only a free generated by heavy advertising within the newspaper with the widest distribution widely distributed newspapers in major of any newspaper in Israel; it is also a free cities and public transportation depots. newspaper that operates against all the For a while this model proved to be quite defining and common characteristics of successful, serving as a source of hope for free newspapers. As opposed to the “slim” print journalism, in terms of a new and vi- editorial board of a typical free newspa- able model – at least until the financial cri- per, Israel Hayom has a professional and

https://doi.org/10.24434/j.scoms.2017.01.008 © 2017, the authors. This work is licensed under the “Creative Commons Attribution – NonCommercial – NoDerivatives 4.0 International” license (CC BY-NC-ND 4.0). 100 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106 well staffed editorial board, employs pro- established by Netanyahu benefactor and fessional and senior journalists, is a full financial backer Adelson to serve three length tabloid newspaper with a weekend primary purposes: first and foremost, to edition and weekend magazine, and it bolster Netanyahu’s image among the has operated at a continued financial loss public. Second, to eliminate via unfair since its inception in 2007. Rather than try- competition Israel’s other leading com- ing to justify its financial and commercial mercial daily newspaper, Yediot Ahronot, existence, the paper seems to do quite the which had adopted an anti Netanyahu opposite with its high salaries and below stance. Third, to destabilize the entire Is- market price for advertising1. It is estimat- raeli media economy. Adelson himself has ed that the newspaper has lost between been quoted as saying that “the paper was $200 to $300 million US dollars since 20072 created to balance the far left agenda of (Ha’aretz, 9.1.2017). Yediot Ahronot and other Israeli newspa- Unlike the majority of free newspa- pers4” (Ha’aretz, Nov. 2014). pers in the world, Israel Hayom has come In 2009, and later in 2014, members of to play a very significant role in both Israeli the Israeli , from both the opposi- national politics and, we claim, to serve as tion and coalition parties advanced a bill a disruptive media actor in relation to oth- (“Law for the Advancement and Protection er, commercial daily newspapers in Israel, of Written Journalism in Israel”) directed the media economy in general and the specifically againstIsrael Hayom in an at- political system. We thus suggest an alter- tempt to curb its perceived impact. Many native model of the free newspaper as dis- viewed the attempt to pass the bill as one ruptive media actor, whose sole purpose, of the main reasons for the dissolution of in the case at hand, is to support Israeli PM the parliament by Netanyahu and the sub- personally (Balmas, sequent 2015 national elections5 (Ha’aretz, et al. 2014) and destabilize the local me- Dec, 2014). Israel Hayom has been largely dia landscape, changing it beyond recog- successful on all points, bringing into light nition. While this is not the first case of a issues and questions related to political paper sacrificing profitability for political communication, democracy, politics, the influence (for example, Canada’s National media, and the relations between capital, Post), the sustained financial losses, the politics, and the press. This is reflected in paper’s support of a single politician (rath- the language of the proposed bill which er than a party or political line), together notes that “The inability [of the printed with its impact on the Israeli mediascape press] to compete in a real and fair way in make it unique. the market on the relative basis of journal- Israel Hayom, founded by Sheldon istic excellence is due to the distribution of Adelson in 2007 and distributed primarily free newspapers” (Israeli Bill 2464/19/P). on public transport and major road junc- The leaking of taped conversations be- tions has, since 2011, become the most tween Netanyahu and the publisher of widely read newspaper in Israel3. Fre- Yediot Ahronot, Arnon Mozes, in January quently referred to by the Israeli public 2017 strengthens this thesis. In the taped as the “Bibiton” (an amalgamation of the conversations, Netanyahu and Mozes are nickname of Israel’s Prime Minister Benja- heard bargaining for control of the con- min Netanyahu and the Hebrew word for sensus in Israel, with Netanyahu offering newspaper, “i‘iton”) the newspaper was to restrict Israel Hayom (via his relation- ship with Adelson and as minister of com- 1 http://www.the7eye.org.il/115594 (Hebrew). munication) in its competition with Yediot Accessed 31/5/16 Ahronot in return for favorable coverage of 2 http://www.haaretz.co.il/news/ education/1.3228188 (Hebrew) Accessed 4 http://www.haaretz.com/israel-news/. 21/3/17 premium-1.626053 Accessed 31/5/16 3 http://www.israelhayom.co.il/site/israel. 5 http://www.haaretz.co.il/news/politi/. php Approx. 38% on weekdays and almost premium-1.2504567 (Hebrew). Accessed 40% on weekends. Accessed 31/5/16 31/5/16 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106 101

Netanyahu by Yediot Ahronot6 (Ha’aretz, and cross ownership is highly problematic 8/1/2017). This picture is further tainted in a democratic regime in terms of media by the fact that Netanyahu also serves as pluralism and the public sphere (Haber- minister of communication, responsible mas, 1991). As in many developed democ- for the regulation of the Israeli medias- racies, printed news has suffered the most. cape. In Europe, quality papers have moved to a We contend that Israel Hayom should tabloid format or have been trying to raise be viewed as a “disruptive” media actor in money from investors. The Israeli printed the area of politics and the media in Is- press has faced similar difficulties; with rael. We do not use the term “disruptive” only two mainstream daily newspapers lightly, or in the positive sense in this case. left: Yediot Ahronot and Ha’aretz. In 2014 Adapted from Christensen’s (1997/2006) Adelson bought Ma’ariv’s online presence, concept of disruptive technology or inno- NRG, as well as the leading niche right vation (a technology, in Christensen’s use, wing newspaper . In addi- that significantly disrupts the traditional tion to these activities, Adelson is devel- order, particularly at an economic lev- oping yet another mobile online presence, el, creating a new reality on the ground), 360.co.il, again drawing on Israel Hayom for the purpose of this paper we define as for content. disruptive a media actor that significantly The purchase of the NRG website is an impacts the arenas of politics and the me- important indication of Adelson’s inten- dia economy, essentially forcing a change, tion to become a dominant player in the or changes, in the “rules of the game” at a popular web based news industry in Isra- systemic level, creating a new, monopolis- el. The decision to buy a well established tic, media reality. We suggest here that the site and not to use the existing Israel Ha- disruptive media actor is not motivated by yom website or domain as a platform for profit. It will sacrifice the profitability of a expansion, raises serious questions about newspaper for wider and deeper political the purpose of the acquisition. The deci- and/or financial goals. The sole purpose of sion to obfuscate the working relationship the disruptive media actor is to intention- between Israel Hayom and the NRG and ally disrupt existing media structures and News 360 websites, considering that web politics. In Christensen’s model of disrup- based news, as most news outlets in Israel, tive technology, disruption is a byproduct is already very concentrated, and suffers of innovation, not the intended goal. Fur- from cross ownership is problematic to thermore, while the Israeli case may in say the least. (Schejter and Yemini, 2015). many ways be sui generis, we expect that In this case there are three distinct online the model presented here of disruptive media entities, all drawing content from media actor may be relevant, based on re- Israel Hayom. cent trends, and under certain conditions, It would seem that the use multiple to smaller countries in the Balkans, parts web based platforms by Adelson for es- of Eastern Europe, and in countries with a sentially the same content is an attempt similar political economy to that of Israel. to disguise the relationship between the In general, Israel suffers from a highly different sites. A possible explanation may concentrated media economy with strong be found in the fact that the Israeli public cross ownership and segmentation of is well aware of the relationship between the majority of the media outlets (Ezra- Netanyahu and Israel Hayom, and multi- hi, Leshem and Goshen, 2003; Limor and ple platforms with similar content shared Nossek, 2006; Katz, 1996), including the across social networks serves to mask the printed press, television, radio and Inter- provenance of the content, making them net based news sites (Schejter and Yemini, more effective as pro Netanyahu plat- 2015). This concentration of ownership forms. 6 http://www.haaretz.com/israel- news/1.763649 (English). Accessed 30/3/2017 102 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106

2 Israeli media landscape fact the current PM, Benjamin Netanyahu, also serves as minister of communication, The press in Israel pre- responsible for regulation of both media dates the establishment of the state in and infrastructure. The result, at least in 1948. Hebrew newspapers were seen as terms of print and broadcast media, is an integral part in the revival and mod- nothing short of a crisis. ernization of the Hebrew language, with In addition, one must take into ac- the first such paper established in Jeru- count a closely related phenomenon: the salem in 1863. Ha’aretz (Israel’s paper of impact of the personalization of politics record) was established in 1918. Yediot in general (McNair 2011, McAllister 2007, Ahronot, formerly the most popular paper Bennett 2012, Van Aelst et al., 2012) and in in Israel, was established in 1936. Political the Israeli case, the deep personalization movements and parties also had their own of politics, at the expense of both party newspapers which were widely read. To- and ideology (Rahat and Sheafer, 2007). day, there are only two commercial dailies This has been reflected very strongly in remaining: Yediot Ahronot and Ha’aretz, the election campaigns of the last decade both struggling. There are also three dai- (ibid.). On the part of Israel Hayom, this ly financial newspapers, and one other personalization is reflected in its support free newspaper, a cannibalization of the of Netanyahu specifically – not his Li- remains of Ma’ariv under the ownership kud party, and not necessarily right wing of , a very thin Ma’ariv politics, as differing views are expressed Haboker, (Morning Ma’ariv) with insignifi- within its editorial pages. Content analysis cant distribution. shows that the news content itself tends Beyond the printed press, Israel has to support the general Israeli consensus, a fairly saturated media landscape, with more or less in line with main stream me- 1 public TV station and 2 commercial TV dia outlets, with a center right slant, yet stations, cable and satellite services, two is consistent in its very positive portrayal public radio networks and 14 regional of Netanyahu, his wife, his family and his radio stations, which tend to encourage policies (Balint, 2015). segmentation (Katz, 1996) rather than na- In spite of the crisis and the deficits tional integration. This is matched with a noted above, the printed press in Israel significant and popular online presence of remains a central and important source media (Gilboa, 2008). And while the land- for news and the generation of public dis- scape is rather rich, Israel is also known for course. The printed press remains one of its high levels of media concentration and the primary gate keepers and mediators cross ownership of media and infrastruc- of the news, alongside television and ra- ture (content and platform), in spite of dio. The entry of a new and crushing actor attempts at anti trust and anti monopoly into this saturated, crumbling arena would actions (Schejter and Yemini, 2015). This thus seem strange if the purpose of the can have harsh consequences for any de- newspaper was to generate profit, as there mocracy, as noted by Baker (2002, 2006) is little left of the pie – yet as we will see and McChesney (1995, 2015). As in other in the next section, the intentions of Israel countries, advertising revenue has migrat- Hayom go far beyond mere profit, having ed from the printed press to online media. actively sought and succeeded to impact Essentially, much of the media landscape both the media landscape and the political in Israel is controlled by five family based system at various levels. local media conglomerates (Schejter and Yemini, 2015). This is matched by increas- ing levels of politicization of public broad- 3 Israel Hayom casts, and political interventions and pres- sures directed against TV channels, media Israel Hayom, a free daily paper with a cir- outlets, and journalists (Caspi, 2008). Ex- culation of 400,000 copies on the weekend acerbating these structural lacunae is the (275,000 weekdays) in a country of 8 mil- Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106 103 lion citizens stands firmly at the nexus of weapon, whose sole purpose is to support issues related to democracy, the media, the Netanyahu and destabilize the local media personalization of politics, media concen- landscape, changing it significantly. tration and cross ownership as well as the political economy of the media in Israel. While one could easily conduct a political 4 Israel Hayom as disruptive economy based critique and analysis of Is- media actor rael Hayom, providing insight into capital, the media and politics in Israel, we pro- As noted above, we suggest applying the pose viewing the paper in a different light model of disruptive media actor to the free entirely, that of disruptive media actor. newspaper Israel Hayom, due to its signifi- Israel Hayom was founded in 2007 by cant impact at a systemic level, essentially the American billionaire and Netanyahu forcing the closure of a veteran commer- benefactor, Sheldon Adelson. It is one of cial newspaper (Ma’ariv) while destabi- the first free newspapers in Israel, and by lizing the media landscape on the whole far the most successful. The paper enjoys with the introduction of an owner-subsi- the highest circulation of a newspaper dized business model. Since its inception in Israel, commercial or otherwise, with in 2007, it has been estimated that the close to 40% readership on weekdays (ac- newspaper loses on average $2.5 million tual readership is a bit higher – the paper is US dollars for each month of operation, often left on the bus for future passengers, or $30 million US per year, and has been thus one paper is read by many passengers actively and openly seeking the weakening over the course of the day). Readership on and destruction of existing media struc- public transportation are primarily young tures8, in this case, Yediot Ahronot. In ad- soldiers, setting future reading patterns for dition to these losses, the paper charges this population. As Lamour (2016) notes, only half of the market rate for advertise- “circulation strategies within space are ment9, raising serious questions as to its certainly central to an explanation of the financial goals and its business model. We success of this medium”. The other free thus contend that the disruptive media ac- newspaper, Ma’ariv Haboker, is distribut- tor operates to pursue a goal that has little ed in a similar fashion, but has an insignif- to do with profit. The goal is disruption icant distribution. itself. It will sacrifice the profitability of a Adelson also owns a newspaper in Las newspaper for wider and deeper political Vegas run at a loss, the Las Vegas Review and/or financial goals – in the Israeli case, – yet in this case both the ownership and the strengthening of Netanyahu’s public lack of profit are understandable – Adel- image, entrenching him as the only viable son has many business interests in Las political candidate. What was initially con- Vegas, and owning a major newspaper in jecture was made clear with the release of a city where one operates commercially the Netanyahu-Mozes tapes noted earlier. is understandable, even if the newspaper We thus propose an even wider view, is run at a loss. In the case of Israel Hay- beyond that of the destabilization of the om, Adelson is not involved or invested in media landscape, and suggest considering any significant way in the Israeli economy the impact of such an actor at the social beyond his involvement with the press7, and political levels. Israel Hayom contrib- suggesting an alternative model of the free utes to the devolving political discourse newspaper as a disruptive media actor, in in Israel by blindly and uncritically sup- this case being used as a tactical media porting Netanyahu, it damages the public sphere by monopolizing printed media 7 Map of the ownership and cross ownership and attempting to dominate online media, of media organizations in Israel, produced by the 7th Eye, a media watchdog publication, 8 http://www.the7eye.org.il/115594 (Hebrew). published by the Israel Democracy Institute Accessed 31/5/16. (Hebrew). http://www.the7eye.org.il/50534 9 http://www.the7eye.org.il/102339 (Hebrew). Accessed 31/5/16 Accessed 31/5/16 104 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106 serves to damage liberal values related to was supported by a report produced by the press and democracy, and serves as media researcher Dr. Anat Balint from a platform for political struggles and the University. Her report concluded de-legitimization of traditional gatekeep- “theoretically and empirically that Israel ers in Israeli politics such as the supreme Hayom has a strong positive bias towards court. Netanyahu, his family and his immedi- On the 17th of March, 2015 general ate circles, attempting to whitewash any elections were held in Israel – in which public or media criticism”12 (Balint, 2015). Netanyahu was once again successful in The Committee denied the appeal (, forming a ruling coalition. The previous 11.2.2015). In addition to this, the 2016 parliament was dissolved two years early Freedom House report on press freedom by Netanyahu for one primary reason: to lowered Israel’s rank from free to partially derail attempts to legislate a law directed free, primarily due to “the growing impact against the Israel Hayom newspaper – a of Israel Hayom, whose owner-subsidized law that would essentially force its closure. business model endangered the stability During the coalition formation process of other media outlets, and the unchecked following the 2015 elections, it was widely expansion of paid content – some of it gov- reported that one of the conditions posed ernment funded – whose nature was not by Netanyahu for joining the coalition clearly identified to the public13.” The re- was acceptance by potential partners of port also notes that “Economic pressures a clause that would give the communica- have undermined the sustainability of key tion minister (a position eventually held outlets in recent years, threatening long- by Netanyahu himself) the power to de- term media pluralism”, in direct relation to cide which media laws and reforms would Israel Hayom (ibid.). To this one may add be advanced and which would be buried10 the recent expansion of web based news (Ha’aretz, 29.4.2015). Similar language was outlets by Adelson. later used in the signed coalition agree- The paper itself brushes away any ments11, essentially leaving Netanyahu to- criticism – whether in regard to its edito- tal control of the regulation of the media, rial stance and slant, the close relationship telecommunications and the Internet in between the managing editor and Net- Israel as minister of communication. anyahu, its blatant support of Netanyahu, Furthermore, considering the fact or the logic behind its business model – that the paper has maintained a consis- as either political attacks or as slander of tently pro Netanyahu stance, while there competing newspapers. are stringent restrictions on contributions The dissolution of the parliament by to politicians under the election laws, a Netanyahu, less than two years after its newspaper like Israel Hayom, whose only formation, together with Netanyahu’s in- real purpose as we have seen would seem sistence on the above mentioned clause to be to support Netanyahu, is a sophis- during subsequent coalition negotiations, ticated way to bypass fundraising restric- the taped conversations between PM Net- tions. Indeed, prior to the 2015 elections, anyahu and Mozes, the publisher of Yediot an appeal was made to Central Election Ahronot, all serve as indicators of the im- Committee to prevent the distribution of portance of Israel Hayom, and when tak- Israel Hayom close to elections because en together with other aspects, serves to the newspaper should be considered as strengthen our view of Israel Hayom as a forbidden party propaganda. The appeal disruptive media actor.

10 http://www.haaretz.com/israel-news/. premium-1.654009 Accessed 31/5/16 12 http://www.globes.co.il/news/article. 11 Current coalition agreements with all parties, aspx?did=1001008640 (Hebrew). The appeal, including the relevant clause (Hebrew): which is presented here, also links to the full http://main.knesset.gov.il/mk/government/ report (Hebrew) by Balint. Accessed 31/5/16 Pages/CoalitionAgreements.aspx Accessed 13 https://freedomhouse.org/report/freedom- 31/5/16 press/2016/israel Accessed 31/5/16 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106 105

5 Conclusion of professionalization; and the role of the state in relation to the media system. We Israel Hayom is an excellent, if sui generis find these dimensions useful for identifi- example of the impact that a free, own- cation and comparison, in particular due er-subsidized, partisan newspaper can to the presence of the political context, have, even in an era where both commer- which we view as crucial for the under- cial and free press are struggling to survive. standing of the Israeli case, or any other As we have shown, the newspaper has im- future case for that matter. pacted many levels of Israeli society – from Further cases are necessary of course the heavily concentrated and cross owned in order to qualify and demonstrate the ef- media landscape, to the very stability of ficacy of the disruptive media actor model a ruling coalition – to the detriment of – yet we are certain that similar cases will the media, the public sphere and liberal present themselves in the future – most democratic values. All this, in the service likely in the smaller Eastern European and of Prime Minister Benjamin Netanyahu’s Balkan states, and in countries close to the political career (now the longest reign- polarized pluralist model (a dual or multi ing Prime Minister in Israeli history), his party system with high polarization) sug- family and his cohorts. As we have noted, gested by Hallin and Mancini (2004), cor- the business model of the paper lacks any relating for smaller population size. coherent, financial logic beyond that of consistently losing substantial capital on a monthly basis. References A disruptive media actor significant- ly and intentionally impacts the arenas Balmas, M., Rahat, G., Sheafer, T., & Shenhav, S. of politics and the media economy, forc- R. (2014). Two routes to personalized poli- ing systemic changes in the “rules of the tics Centralized and decentralized person- game”, creating a new, monopolistic me- alization. Party Politics, 20(1), 37–51. dia reality. The disruptive media actor is Bennett, W. L. (2012). The personalization of not motivated by profit or financial gain, politics political identity, social media, and rather it is focused on a larger and singular changing patterns of participation. The goal – the disruption of both the political ANNALS of the American Academy of Polit- system and the existing media economy. ical and Social Science, 644(1), 20–39. Disruption is the goal, not a byproduct of Baker, C. E. (2006). Media concentration and the introduction of a new model. As we democracy: Why ownership matters. Cam- have shown, Israel Hayom has dedicated bridge University Press. significant resources to bolstering Ben- Baker, C. E. (2002). Media concentration: Giv- jamin Netanyahu’s public image, his po- ing up on democracy. Fla. L. Rev., 54, 839. litical career and his continued reign as Bakker, P. (2013). The life cycle of a free news- prime minister, first with a free newspaper paper business model in newspaper-rich and now expanded to online media sites. markets. Journalistica-Tidsskrift for forsk- In this sense Israel Hayom can be viewed ning i journalistik, 2013(1). as a tactical media weapon. Attempts by Balint, A. (2015). Israel Hayom as forbidden legislators on both the left and right of the election propaganda. Report submitted political spectrum to restrain the newspa- to the Central Election Committee, Israel. per were met by Netanyahu with the dis- (Hebrew). solution of a stable government coalition Christensen, C. M. (2006). The ongoing process and new elections in which Netanyahu of building a theory of disruption. Journal was re-elected. of Product innovation management, 23(1), We suggest that future comparisons 39–55. (should they arise) be based on Hallin and Christensen, C. M. (1997). The innovator’s Mancini’s (2004) framework, with four dilemma. Harvard Business School Press, primary dimensions for comparison: me- Cambridge, MA. dia systems; political parallelism; degree 106 Dahan & Bentman / Studies in Communication Sciences 17.1 (2017), pp. 99–106

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