Free markets don't allocate capital in the best way measured by societal goodness. They allocate capital in the most efficient way relative to the demands of other participants.

This means that goods/services are regularly not produced because it is unprofitable. If for some reason local news is profitable, then anyone that wants to consume it could easily step in to produce it.

Efficiency doesn't necessarily mean good. But it does prevent or at least minimize wasteful economic activity. Anything outside that realm is a good candidate for a hobby.