Speaking at the Oxford Media Convention, Jeremy Dear said more independents would help counter the dominance of a number of regional media groups.
The online media, he added, is being dominated by the same companies as the traditional sector.
But pioneering individual news sites, such as Rick Waghorn's myfootballwriter.com, show that there is space and demand for something different, Dear told Journalism.co.uk.
More independents will also help established groups experiment with new commercial and editorial models, he said.
Responding to comments made by Ofcom and secretary of state for media, culture and sport Andy Burnham, Dear said the idea of local news consortia might not appeal to local newspaper groups.
But support shown by the BBC and Community Media Association for new local media partnerships suggests these proposals could go further, he said.
"There are going to have to be new business models or media companies will just be managing the decline," he said.
Finance reporter - property
