Their job is to make people feel informed without actually informing them, the company that's best at deluding people and keeping viewers while doing it will get the most advertising revenue.
It's more than just the media. The media is a symptom and valuable tool of a much bigger problem, one which questions the fundamentals of western society, so don't expect much else.
It's possible to learn alot about what really goes on but you have to dig for it. I mean, a rag like The Economist is filled with loads of garbage about what should be in America or whatever, but it has to have some truths about what goes on the world, or they would lose their reader base, right, so it at least reports well in areas involving actual investment. You just have to take anything involving free trade agreements, domestic policy, etc with the giant grain of salt that you should.
A huge problem with making your own news source wouldn't even be funding, it's sources. Often times newspapers rely on government reporting. The government tends to give news late to people who report with anything but a pro-US slant, which of course if you're reporting 3 days behind the NY Times you will not get many readers.
Sensationalism is an interesting way to put it, and that is more of a recent phenomenon with the increasing blend of entertainment and news television. There are people out there who, you know, watch the news to gain information about the world. Of course most of them probably aren't watching TV news anymore and have switched to internet news sources.
I still want to understand to what goal television news has failed. Failed to do what? To educate and inform? That has clearly not been it's purpose.