Media's death by a thousand cuts

Press freedom advocates are sounding the alarm following Paramount's $16 million settlement with President Trump, arguing the deal sets a dangerous new precedent, particularly for smaller outlets with fewer legal resources. Why it matters: A steady decline in media trust, coupled with enormous financial challenges, has made the press more vulnerable to political pressure campaigns than ever before. Between the lines: The deal has drawn outrage from critics who believe Paramount could have won what they believe is a frivolous lawsuit. While the size of the agreement is nearly identical to ABC's settlement with Trump last year, Paramount is under fire because its deal comes as the company seeks regulatory approval for its $8 billion merger with Skydance Media.Democratic Sens. Ron Wyden and Elizabeth Warren both called the settlement "bribery."The Knight Institute said Paramount's legal exposure was "negligible," and argued it should've fought the case in court. PEN America, another press freedom group, said Paramount "caved to presidential pressure" and "chose appeasement to bolster its finances."Reality check: The Wall Street Journal editorial board on Wednesday noted that this moment feels like a turning point for press freedom. "President Trump has taunted the media for years, and some of his jibes are deserved given the groupthink in most newsrooms. What's happening now, though, is different: The President is using government to intimidate news outlets that publish stories he doesn't like. It's a low move in a free country with a free press," it wrote. Zoom out: The settlement comes as the administration ramps up its efforts to target the press. Most recently, Trump and Department of Homeland Security Secretary Kristi Noem have endorsed the idea of prosecuting CNN for its critical coverage of U.S. strikes in Iran and its immigration reporting. Trump also suggested he could demand journalists reveal their sources in light of the Iran intel leak. In April, the Justice Department repealed protections for journalist-source confidentialityThe White House has already banned the AP over its editorial standards. It's also pushing Congress to gut funding for public media. The FCC has launched investigations into the DEI policies of Comcast/NBCU and Disney/ABC. The big picture: The Paramount settlement is the latest in a slew of recent examples that show just how desperate media companies are to survive political and economic pressure.Disney, Warner Bros. Discovery, Paramount, Gannett and other major media companies have all rolled back diversity, equity and inclusion policies to mirror the administration's new mandate on DEI.The vast majority of America's largest newspapers by circulation are no longer doing presidential endorsements.PBS member WNET cut 90 seconds from a documentary last month, in which the film's subject, author and cartoonist Art Spiegelman criticized Trump, per The Atlantic.ABC News dropped longtime correspondent Terry Moran after he criticized Trump and top aide Stephen Miller in a since-deleted tweet, drawing swift criticism.What to watch: Those concessions are happening amid a historic drop in trust of mainstream media, making it harder for newsrooms to rally public support. Only 31% of Americans say they have a great deal or a fair amount of trust in the mass media, down from 50% 20 years ago and 40% a decade ago, according to a Gallup survey.

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