I'm not trying to beat you over the head with a dictionary, but I can understand when business models is used in places where it is not strictly accurate. I wouldn't personally say the Army or Government (providers of public goods) have a business model, but in the discussion of new agencies, there is enough overlap and history for the term to still hold its meaning.

Even then, using your definition, does not help us escape the point - there needs to be a source of funds for local news. I am perfectly fine with government money being used to pay for it.