He is correct in this on some level. You can call in the BuzzFeed effect. Clip bait has changed things significantly for media, but its effects hit newer and less established media outlets than established ones (though they are also embracing some of these techniques). The MSM plays a bit of this game, mostly in newspapers. The big three American networks (ABC, NBC, CBS) don't really do that. Cable does. Fox News has been doing this for 20 years where they stoke outrage.I see where you are coming from and that may play a part. But just watch the first minute or so of this clip. I think he nails it.
A couple of things:
Headlines. Very few reporters write a headline. It's the copy editor that does it. So, the headline can be sensationalized to catch eyeballs. This is not a new thing, it's been like this for probably 100 years or more. So, the article could be straight-forward and balanced, but the headline is designed to cause an emotional reaction and hopefully cause someone to read it. Which leads me into...
Analytics: The online world has changed the business model. Papers at one point just put stories on the web with no paywall. Then they wanted people to pay, which was difficult. But, the biggest thing in all this is they can now accurately see which stories are the most read, have the most shares, likes or comments. They can use this data to justify ad rates from Google or the other online ad companies and make a lot of cash. It also influences how papers (and TV channels) decide on what to cover. For example, if stories about Trump & Russia are getting a lot of interactions, they will dedicate more coverage to it. For the NYT, this might mean looking at other angles for this. For a far-left publication, they will devote space to spreading rumours or innuendos about what Trump did, the pee tape etc (with little to no evidence), while a right-wing publication will focus on defending Trump and trying to knock down the stories (again, with little to no evidence).
Now, as I said, most MSM outlets have changed things because of this new reality. However, they still have journalistic integrity and really try to cover all sides of the story. They are not always successful in that, or they make errors that can be embarrassing (some due to faulty info, rarely due to maleficence). But what separates them from propaganda outlets it they will acknowledge the errors and write a correction.
There are many reasons why the media is going through a lot of changes. They have competition from unlikely sources. I mean, who in their right mind would get news from Alex Jones and InfoWars....but it's happening. As Taibi said, 30 years ago everyone got the same news. Now you can get coverage on things from so many different perspectives, some which are just blatantly false or inaccurate. Having different views is important, but having alternative facts is where things get messy, and this is where the mistrust happens.
And about that distrust, it stems from right-wing news outlets. There is something called the Fox effect. Basically, it works like this. Fox makes a mountain out of a molehill on something a Democrat says. Wall to wall coverage,"experts" and commentators saying it is the biggest scandal in the world. But the MSM isn't covering it at all (because it isn't really a story). The right-wing viewer/reader sees this and instead of thinking Fox is going off the rails, they think the MSM is covering it up or ignoring a serious things.Then they start to wonder what other important stories do they bury? This causes centrist news organizations to start and cover some of these stories.
Now, what this does to the lefties, they see this and start to wonder why the MSM is giving air to something so silly and trivial. Then they start to question why the MSM seem to be so easy on the GOP for stuff they do, yet crucify Democrats for similar transgressions.
Basically, the news industry is facing challenges like never before. There are so many outlets all competing for eyeballs and attention for those sweet, sweet a dollars. And, because of this, all are sort of dumbing down their content, or stoking outrage to grab more eyeballs. I don't claim to have the answer to this, but it is something that is really destructive.