This is not a story that can be understood from headlines alone, partly because in Britain the headlines have so often wildly distorted the truth. Despite what you may have read, there is no threat by British politicians to interfere with press freedom. There is, however, a powerful consensus for change.
In the digital age newspapers are out of date by the time they are published. This is one of the reasons why publishers are investing more in their wider media strategy, with the Evening Standard recently announcing the forthcoming launch of a television channel. One side effect has been the rise of some very successful online publications, but most blogs are volunteer run and don't have enough resources or attract a broad enough readership to compete with the established media in quality terms.
There is nothing in any of the proposals aired at the inquiry or in Leveson or in the hubbub since that will make regulatory issues any more tractable than they have been for over the last two decades. Heaven knows, the PCC needed more muscle and more independence. But, there is no half-decent system of press regulation in the world that does not begin with the taking of complaints from the public. Yet Leveson rejected the notion that a complaints-driven system could justify calling itself a regulator.