Earlier this week Judy Woodruff of the “PBS NewsHour” reported on the demise of The Canadian Record, an independently owned weekly newspaper that served the community of Canadian, Texas. Woodruff hits on themes familiar to readers of this space, including the loss of more than 2,000 newspapers in recent decades as well as the rise of polarization and the decline in voter turnout, both of which are related to a lack of reliable news and information at the local level.
The news from Canadian turns out to be not quite as grim as most of the story would suggest. We learn toward the end that publisher Laurie Brown and others continue to post occasional stories to the website and to the Record’s Facebook page, and that she’s currently seeking a buyer for the paper. But it’s certainly grim enough, as neither she nor her contributors are getting paid.
As optimistic as I am about the future of local news, there are parts of the country that are just hard. Places like Canadian, a small town in the rural Texas Panhandle, are especially difficult, as they lack the population base to sustain a news outlet now that most advertising has migrated to the internet. Such places also frequently lack the social capital needed to launch a nonprofit news organization.
I hope the Record finds a buyer, although, if she does, the new owner is going to face exactly the same kinds of challenges that proved insurmountable for Brown.
Media Nation is back. It’s not quite where I want it to be yet, but it’s good enough to resume posting. Look for more improvements in the days to come.
Unfortunately, I’m here to report some sad news. The Portland Phoenix, the last of the Phoenix newspapers where I worked for many years, has ceased publication. Editor Marian McCue’s farewell editorial begins:
It was easy to have a sense of optimism in the spring of 2019. It was a different time, when former Forecaster publisher Karen Wood and I hatched a plan to launch a new version of the Portland Phoenix, which had folded in February of that year. We wanted to build a strong and independent news alternative to the media monopoly that controlled the Press Herald and many of Maine’s newspapers.
Our timing was not great. Five months after the launch, the pandemic struck with a vengeance. Few alive had seen such a cataclysmic event, much was unknown and everybody was fearful. The advertising relationships we had suddenly vanished. We tried to keep going, but the advertising was not there.
The flagship Boston Phoenix closed in 2013. At one time there were Phoenix papers in Providence, Portland, Worcester as well as Stuff magazine, Stuff@Nite and an alternative rock radio station, WFNX. The Portland Phoenix staggered on under new ownership until 2019, and was then relaunched by McCue and Wood. The new Portland Phoenix was redesigned and built a reputation for quality journalism. In the end, it wasn’t enough.
I hope someone else will give it a try. Portland is a medium-size, semi-isolated city with a strong arts community — exactly the sort of place where an alt-weekly can still find a niche. And let’s not forget that Portland recently got some very good news, as the state’s largest daily, the Portland Press Herald, and most of its affiliated papers will be acquired by the nonprofit National Trust for Local News.
The U.S. Capitol. Photo (cc) 2013 by Mark Fischer.
I’ve written quite a bit here about the possibility of government assistance for local news. Though it’s not an idea I’m enthusiastic about, I think the indirect assistance laid out in the Local Journalism Sustainability Act is worth trying. The LJSA, which would provide tax credits for subscribers (or donors), advertisers and publishers, died at the end of the last congressional session despite having some bipartisan support.
Now a new, similar measure has surfaced. The Community News and Small Business Support Act would create five years’ worth of tax credits for advertisers and publishers, but not for subscribers. The bill is being sponsored by Rep. Claudia Tenney, R-N.Y., and co-sponsored by Suzan DelBene, D-Wash. The trade publication Editor & Publisher has gone all out in covering the story, and I emailed a few of my thoughts to E&P’s Gretchen Peck.
As I told Peck, the new bill, like the LJSA, is worth supporting for two reasons: the tax credits are indirect enough not to interfere with the independence that news organizations need to hold government to account; and the publishers’ tax credit for hiring and retaining journalists gives even the giant chain owners like Gannett and Alden Global Capital some incentive to do the right thing.
That said, it’s hard to imagine the bill emerging intact from a House that just this week featured Rep. Marjorie Taylor Greene waving around revenge porn starring Hunter Biden and Robert F. Kennedy Jr., indulged by the Republican leadership, denying that he made the antisemitic and racist comments we had all heard him make.
Steven Waldman, president of the Rebuild Local News coalition, has written an op-ed for E&P endorsing the Tenney-DelBene bill and hailing its emphasis on local news outlets and advertisers. “This will directly help the small businesses, many of which had to cut back on their marketing spending because of COVID and then inflation, to get customers in the doors,” Waldman writes. “It makes sense because saving local news should not be about saving journalism jobs per se. It should be about strengthening communities.”
The bill is also far better than the misguided Journalism Competition and Preservation Act, which would extract revenues from Google and Facebook as compensation for the news content they repurpose.
There is no substitute for news entrepreneurs on the ground, for-profit and nonprofit, doing the hard work of building sustainable local news organizations. But a little bit of indirect assistance from the government wouldn’t hurt.
Walter Robinson speaking at a New England First Amendment Coalition event
In the latest “What Works” podcast, Ellen Clegg and I talk with Walter Robinson, a longtime investigative journalist and editor of The Boston Globe’s Spotlight Team. Robby, as he is known, was instrumental in uncovering the clergy sex abuse scandal that rocked the Catholic Church in Boston and beyond. The series won the Pulitzer Prize for Public Service in 2003. The team’s work was captured onscreen in the movie “Spotlight,” where Robby was played by the actor Michael Keaton.
Robby is a former colleague — he was a Distinguished Professor of Journalism here at Northeastern. He was also a 1974 graduate of Northeastern’s journalism program and participated in co-op.
Robinson covered and edited local news at the Globe. But he ranged wide. He reported from 48 states and 33 countries. He covered the White House during the Reagan and George H.W. Bush administrations. He was also the Globe’s Middle East bureau chief and covered the first Persian Gulf War.
In recent years, Robby has been focused on the local news crisis in a big way. He has been deeply involved in the New Bedford Light, an impressive nonprofit digital news outlet. He lives in Plymouth, so it’s perhaps no surprise that he is a key adviser to the board of directors at the new Plymouth Independent.
I’ve got a Quick Take on developments in the junkyard known as Twitter. Ellen reports on a new podcast out of Memphis called “Civil Wrongs.” It’s produced by a Report for America corps member that examines a racist massacre in the aftermath of the Civil War.
Patrick Soon-Shiong. Photo (cc) 2014 by NHS Confederation.
Patrick Soon-Shiong, the wealthy surgeon who owns the Los Angeles Times, has delivered yet another daily newspaper into the greedy hands of the hedge fund Alden Global Capital. Soon-Shiong announced Monday that he’d sell The San Diego Union-Tribune to Alden’s MediaNews Group. By my count, the Union-Tribune becomes the 10th paper that Soon-Shiong has helped turn over to Alden. As Sara Fischer and Andrew Keatts report for Axios, the new owners immediately announced cuts to the newsroom.
When Soon-Shiong bought the LA Times in 2018, the Union-Tribune was thrown in as part of the deal. Soon-Shiong was hailed by optimistic media observers as someone who, like Jeff Bezos at The Washington Post and John Henry at The Boston Globe, would provide his papers with the runway they needed to become self-sustaining enterprises.
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It’s been a mixed bag. Soon-Shiong’s main interest has been the LA Times, but he’s gone back and forth between investing and cutting. By no means has the Times been hollowed out as if it had been owned by, oh, let’s just say Alden Global Capital. But he’s run a lean ship, with the Times announcing just a few days ago that the recent sale of its press meant that game stories, box scores and standings would be eliminated from its print edition, according to Andrew Bucholtz of Awful Announcing.
Selling off the San Diego paper to one of the worst possible buyers is reminiscent of John Henry’s decision to sell the Telegram & Gazette of Worcester to a Florida chain back in 2014. As I recount in my book “The Return of the Moguls,” folks at the T&G thought Henry had promised not to sell unless a local buyer could be found; Henry told me his only promise had been not to sell to GateHouse Media. In any case, GateHouse managed to acquire the T&G within months and immediately began hollowing it out. GateHouse later morphed into Gannett, the country’s largest newspaper chain with about 200 dailies, which is notorious for its cost-cutting.
Alden Global Capital’s two newspaper chains, MediaNews Group and Tribune Publishing, make it the second largest owner with about 100 dailies. Alden is often described as the worst newspaper owner in the country, denounced as “vulture capitalists” who slash news coverage and sell off real estate in an attempt to squeeze out as much revenue as possible. Locally, Alden owns the Boston Herald, The Sun of Lowell and the Sentinel & Enterprise of Fitchburg.
Soon-Shiong was perhaps the central player in Alden’s acquisition of Tribune Publishing. Whereas MediaNews Group comprises mainly smaller papers, plus a few large dailies such as The Denver Post, Tribune owns eight of the largest, most iconic papers in the country, including the Chicago Tribune, The Baltimore Sun, the Orlando Sentinel and, closer to home, the Hartford Courant.
In the spring of 2021, Tribune, then comprising nine papers, was up for grabs, as it had been many times before. Stewart Bainum, a Baltimore hotel magnate, was attempting to buy the chain and sell off some of its properties to what he hoped would be public-spirited local owners. His main interest was in saving the Sun. Also bidding for the papers Alden. The hedge fund actually offered less money than Bainum, but its offer was reportedly less complicated as well.
The Tribune board ended up voting to sell the papers to Alden — a move that could have been halted by just one board member. Soon-Shiong, who was on the board, abstained, and he did so in a way that mean his vote essentially counted as a yes. As The Washington Post reported at the time, Soon-Shiong submitted his ballot without having checked the “abstain” box; if he had, his vote would have been counted as a “no.”
Bainum went on to found the nonprofit Baltimore Banner. Tribune, meanwhile, spun off one of its most prominent papers, the Daily News of New York, which remains part of the Alden empire as a separately owned entity.
So what’s next for The San Diego Union-Tribune? Nothing good, you can be sure. Voice of San Diego, a nonprofit news site, headlined its story “LA’s Richest Man Sells Union-Tribune to Feared ‘Chop Shop.’” Will Huntsberry and Scott Lewis interviewed the news-business analyst Ken Doctor, who predicted that San Diego will not be rid of Alden anytime soon.
“People get confused because these people are cut-throat capitalists,” Doctor told them. “But their papers are making money and they’re holding onto them for the time being.”
The news about the news doesn’t get much better than this: The National Trust for Local News will acquire Maine’s Portland Press Herald and its affiliated four daily newspapers and 17 weeklies. The deal was announced earlier today. Although not all details of the sale are known, early indications are that the papers will remain for-profit entities under nonprofit ownership. The papers, known collectively as Masthead Maine, will continue to be managed by chief executive officer Lisa DeSisto.
According to Rachel Ohm of the Press Herald, the National Trust emerged as the buyer after the recently formed Maine Journalism Foundation, or MaineJF, fell short in its efforts to raise enough money to buy the papers on its own. MaineJF, also a nonprofit, then started working with the National Trust. Elizabeth Hansen Shapiro, the co-founder and CEO of the National Trust, told the Press Herald that the two organizations are continuing to work together, although it was unclear what ongoing role the foundation might have. The foundation, by the way, would have reorganized the papers as nonprofits; based on Ohm’s story, it sounds like that’s no longer on the table.
The papers were purchased in 2018 by Reade Brower, a printer who acquired them from billionaire owner Donald Sussman. Brower built a reputation as a solid steward who nevertheless was not averse to making cuts in order to stave off losses. Hansen Shapiro would not disclose what the National Trust paid, but it’s likely that Brower could have gotten more from a corporate chain looking to swoop in, gut newsrooms and squeeze out revenues. If that’s the case, then Brower deserves credit for putting his legacy above making every possible dollar.
The independently owned Bangor Daily News remains the only daily in the state that isn’t part of Masthead Maine.
The governance structure of the new ownership has yet to be announced, and maybe even the principals don’t quite know what it will look like yet. The National Trust is best known for rescuing a group of weekly and monthly papers in suburban Denver back in 2021, and now owns them in conjunction with The Colorado Sun, a well-regarded for-profit digital startup.
Portland Harbor after dark. Photo (cc) 2021 by Paul VanDerWerf.
Brian MacQuarrie of The Boston Globe has an overview of efforts to sell the Portland Press Herald of Maine and its affiliated daily and weekly papers.
Back in April, I wrote about the establishment of a nonprofit organization, the Maine Journalism Foundation, known as MaineJF, which was hoping to purchase the papers from owner Reade Brower. MacQuarrie reports that yet another nonprofit group, the National Trust for Local News, “is believed to be in the running.” I assume that the trust is looking to work with the MaineJF rather than compete, so that is potentially a promising development.
Last August, Elizabeth Hansen Shapiro, the CEO and founder of the National Trust, was a guest on our podcast about the future of local news, “What Works.” Ellen Clegg and I spoke with her about her organization’s work in saving legacy newspapers from the depredations of corporate chain ownership.
The trust is perhaps best known for facilitating the sale of Colorado Community Media, a chain of weekly and monthly papers in the Denver suburbs. Hansen Shapiro is also an advisory board member of The Lexington Observer, a hyperlocal nonprofit startup.
Sue Cross at the recent INN Days gathering in Washington. Photo by Will Allen-DuPraw and used with permission.
On the latest “What Works” podcast, Ellen Clegg and I talk with Sue Cross, the veteran journalist who will step down as executive director and CEO of the Institute for Nonprofit News (INN) by the end of 2023. Sue has led INN since 2015, and has overseen a period of tremendous growth. There were 117 nonprofit newsroom members listed in the INN’s 2015 annual report. This year, INN has 425 member newsrooms.
She has also been a driving force in the NewsMatch program, a collaborative fundraising project that has helped raise more than $270 million for emerging newsrooms since its launch in 2016. Before joining INN, Cross was a journalist and executive at The Associated Press. Cross says we are in a golden age of news innovation, and she hopes to continue to lend her support. She also says she hopes to spend time on personal projects.
Ellen has a Quick Take on the launch of the Houston Landing, a nonprofit digital site serving Greater Houston. I provide an update on efforts to extract money out of Google and Facebook in order to pay for news.
Since early 2021, Google has faced legal challenges over its control of digital advertising. Essentially, the tech giant stands accused of violating antitrust law by controlling all aspects of the ad market. As Paul Farrell, the lawyer for a group of seven newspapers in West Virginia, told Gretchen A. Peck of the trade publication Editor & Publisher:
They [Google] have completely monetized and commercialized their search engine, and what they’ve also done is create an advertising marketplace in which they represent and profit from the buyers and the sellers, while also owning the exchange. Google is the broker for the buyer and gets a commission. Google is the broker for the seller and gets a commission. Google owns, operates and sets the rules for the ad exchange. And they are also in the market themselves.
The suit filed by Farrell on behalf of the West Virginia papers was later joined by about 200 papers and included Facebook, which was accused of colluding with Google in order to receive preferential treatment. Attorneys general in Texas and several other states filed a separate suit, with BuzzFeed News reporting that the CEOs of Google and Facebook “personally signed off on a secret advertising deal.” The Justice Department got involved, and the European Union is suing Google on similar grounds.
On Tuesday, Google’s legal woes grew that much more complicated as Gannett, the country’s largest newspaper chain, filed its own lawsuit against Google in federal district court. Writing in USA Today, Gannett’s flagship publication, chair and CEO Mike Reed accused Google of “monopolization of advertising technology markets and deceptive commercial practices.” He added:
The core of the case and our position is that Google abuses its control over the ad server monopoly to make it increasingly difficult for rival exchanges to run competitive auctions. Further, Google’s exchange rigs its own auctions so Google’s advertisers can buy ad space at bargain prices. That means less investment in online content and fewer ad slots for publishers to sell and advertisers to buy. Google always wins because it takes a growing share of that shrinking pie.
In addition to USA Today, Gannett owns about 200 daily papers and other publications across the country, including local papers such as the Telegram & Gazette of Worcester, The Patriot Ledger of Quincy, the MetroWest Daily News of Framingham and The Providence Journal.
So why did Reed decide to file his own lawsuit rather than joining antitrust efforts that are already under way? It’s a good question, and it’s one that Editor & Publisher’s Mike and Robin Blinder asked him about in their vodcast, “E&P Reports.” Reed’s answer: “You know, as far as us going by ourselves, we just felt like we had the right size, we had the right legal counsel, and we felt like we didn’t want to wait.”
Jeff Jarvis, a well-known digital media observer and director of the Tow-Knight Center for Entrepreneurial Journalism at the City University of New York Graduate School of Journalism, was critical of the Gannett suit, telling E&P:
It is tragic that once-great Gannett is resorting to protectionism and retribution against its competitors rather than have a strategy for innovation and growth in a changed marketplace. There are legitimate questions to be addressed regarding Google’s power in both sides of the advertising market and authorities in both Europe and the U.S. are investigating them. But for Gannett to blame Google’s alleged monopoly for its present troubles is just sad.
But you can disparage Gannett for decimating its newspapers while still supporting legal efforts to hold Google to account. Few media observers have been more critical of Gannett than my What Works partner Ellen Clegg and I. Greed and crushing debt have led the chain to cut its journalistic capacity far more deeply than would have otherwise been necessary. Yet it’s simply a fact that very little digital advertising money has flowed to the news business, and that lack of innovation on the part of the news business is only partly to blame. If news publishers and government investigators are able to show that situation is either partly or wholly the result of illegal practices on the part of Google (and Facebook), then there’s no reason why Gannett shouldn’t be one of the beneficiaries, regardless of the company’s otherwise loathsome behavior.
Moreover, the antitrust route strikes me as far more promising than congressional efforts to force Google and Facebook to pay for the news they repurpose. Last week, the Senate Judiciary Committee passed the Journalism Competition and Preservation Act on a bipartisan 14-7 vote, according to Ted Johnson of Deadline. The JCPA would allow the news business to bargain collectively with Google and Facebook for a share of their revenues. Even if the JCPA passes the full Senate, though, it seems unlikely to prevail in the Republican-controlled House. A similar law in Australia has served mainly to enrich press baron Rupert Murdoch, and there’s no guarantee that the JCPA would bolster journalism at the local level.
Regulating a monopoly often leads to unintended negative consequences. Breaking one up, as Gannett and its numerous co-plaintiffs would like to do, can spark innovation. Local news today is getting by through a combination of paywalls, low-value programmatic ads and — in the nonprofit sector — foundation grants, membership fees and events. Nothing would be more welcome than to see that bolstered by a reinvigorated ad market.
Andy Thibault and Billie Holiday delivering The Winsted Citizen
On this week’s podcast, Ellen Clegg and I talk with Andy Thibault, editor and publisher of The Winsted Citizen in Connecticut. The Citizen is a monthly print newspaper serving Litchfield County and the surrounding area. The paper’s digital presence is minimal, although it does publish The Winsted Citizen Blog. But that’s about to change, Thibault says. He’s going digital.
Starting a news organization is never easy, but the Citizen hit a brief speed bump. A speed bump named Ralph Nader, a native of Winsted who was initially the prime mover behind the paper but who got caught up in a dispute over how much financial support he was going to provide. According to Andy, he and Nader are now working together cooperatively and everything is moving ahead just fine.
Jack Walsh, a graduate student in Northeastern University’s School of Journalism, joins us to talk about his recent profile of the Chelsea Record, a 150-year-old weekly paper in the small city of Chelsea, Massachusetts. You can find Jack’s story on the What Works website and read his newsletter, Local News Matters, on Substack.
I’ve got a Quick Take on Gannett. Recently, many union journalists at Gannett staged a one-day strike over layoffs and cutbacks in benefits. Yet there are some interesting moves being made at the top of the company as well, with two news leaders being added to the senior executive team. Is the chain actually looking to bulk up its journalism?
Ellen discusses a recent poll about local news and accountability journalism. Surprisingly few Americans believe that local news media hold public officials accountable, according to a national poll commissioned by the Medill School of Journalism at Northwestern University. This shows the devastating impact of the hollowing out of community news. And it calls into question whether local journalism is fulfilling one of its primary missions.
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