A new study by the Tow Center at the Columbia School of Journalism has found that The Boston Globe was the top recipient of Facebook’s miserly efforts to help fund local journalism.
The study found that the Meta Journalism Project, announced in 2018 and now winding down, provided 564 news organizations with $29.4 million spread across 17 programs. Nearly half of them got the minimum of $5,000. The Globe, though, did considerably better, receiving three grants totaling $390,000, of which $240,000 was for assistance with building and retaining digital subscriptions.
No. 2 on the list is Long Island’s Newsday ($375,000) and No. 3 is The Seattle Times ($355,000). Coming in at No. 4 is a real head-scratcher — the Chicago Tribune, under the chaotic ownership of Tribune Publishing for many years and, since 2021, the notorious hedge fund Alden Global Capital. Rounding out the top five is the Star Tribune of Minneapolis.
The Globe, Newsday, the Times and the Star Tribune are all independently owned — although Newsday has received some unwelcome attention recently for being asleep at the switch while George Santos was lying his way into Congress last fall.
On the new “What Works” podcast, Ellen Clegg and I talk with Greg Moore, former managing editor at The Boston Globe and longtime editor of The Denver Post. During his 14 years at the Post, the paper won four consecutive Pulitzer Prizes. He’s led coverage of major stories, including the Aurora movie theater shooting in Colorado and the case of Charles Stuart in Boston. Greg is now editor-in-chief of The Expert Press, which helps connect specialists with media. He’s still in Denver.
As one of the most senior Black journalists in the country, Greg has been at the forefront of advocating for more diversity in the media and for a new path forward for local and regional news. In fact, Greg resigned his position at The Denver Post in 2016 after he decided he couldn’t tolerate any more cuts to his newsroom at the hands of the Post’s hedge-fund owner, Alden Global Capital. As he put it in an essay for the Pulitzer Prize board, of which he is the former chair:
Local journalism is where accountability journalism matters most. It is focused on how dollars are spent and how priorities are set on the local level. It is often that base level reporting that becomes the seed corn for bigger national stories with datelines from the heartland and the tiniest suburbs.
In the Quick Takes portion of the podcast, I’ve got some bad news: people don’t like us. There’s been yet another survey showing that public trust in the news media is at an all-time low. But there are some problems with the survey, as there usually are — and those problems underline why the trust issue isn’t quite the steaming pile of toxic waste that it might seem, especially for local news.
Ellen has some good news for folks in Akron, Ohio. A local news startup called the Akron Signal has launched with a $5 million grant from the Knight Foundation.
Back before GateHouse Media morphed into Gannett in 2019 and assumed its corporate identity, I believed the company was in it for the long haul. Don’t get me wrong — GateHouse was always obsessed with cost-cutting and was a fairly awful steward of the papers it acquired. But its executives seemed to have convinced themselves that ugly was the only way to win, and that winning meant surviving.
No longer. I couldn’t possibly tell you what Gannett is up to anymore other than squeezing its properties for every last drop of revenue. On Thursday, the company released its latest financial results. They were terrible for journalists and the communities they serve. For investors, though, they were pretty good.
Don Seiffert reports in the Boston Business Journal that Gannett slashed the number of journalists at its 200 or so newspapers (including the flagship USA Today) by 20% over the past year — no surprise to those of us who were following those cuts throughout the year. Seiffert paged through the annual report and found that Gannett employed 3,900 journalists at the end of 2022 (3,300 in the U.S. and 600 at a U.K.-based subsidiary), down from 4,846 a year earlier. At the same time, though, the company had achieved profitability, which sent the stock price soaring by 22%
Incredibly, some of those investors think Gannett has been too slow to cut. For instance, Seiffert said on Mastodon that, during Thursday’s earnings call, Leon Cooperman, CEO of the hedge fund Omega Advisors, which is among Gannett’s larger investors, told Gannett chair Michael Reed, the $7.7 million man: “I think it’s fair to say you couldn’t understand the impact of Covid and the recession on the company. Having said that, I think it’s a fair criticism to say we have been too slow in reducing costs.” As Seiffert noted: “This, despite the company reducing total headcount by more than half since 2019.”
So what’s ahead? You will not be surprised to learn that CFO Doug Horne told investors that Gannett’s going big-time into artificial intelligence to perform some of the work that used to be done by journalists. Just feed the audio from the planning board meeting into ChatGPT and see what happens, I suppose.
Over at Poynter Online, Angela Fu reports that Reed is wicked psyched about 2023, writing:
Reed said the company is entering 2023 with “a lot of optimism.” Inflation seems to have peaked, he said, and newsprint and distribution costs have largely stabilized. In response to a shareholder question about a possible recession, Reed said the company had not seen anything in the first quarter to indicate the country was moving in that direction.
Unless it proves otherwise, though, Gannett should be regarded as nothing but a financial play at this point. The best thing it could do is offload its community papers to local owners who actually care about journalism, as it has done with a few weeklies Central Massachusetts as well as the Inquirer and Mirror of Nantucket, which I wrote about recently in an op-ed piece for The Boston Globe. Gannett has sold some of its papers nationally as well.
In many other cases, vibrant startups from The Provincetown Independent to several projects in the Boston suburbs are competing with vestigial Gannett papers, but more are needed. As Steven Waldman, president of the Rebuild Local News Coalition, has proposed, we need tax incentives aimed at persuading Gannett and other chains to get out of town — and to give committed local ownership a chance to revive grassroots news coverage.
As I wrote last week, the matter of how the Alliance for Audited Media counts paid digital subscriptions is something that has confused me for a long time. In September 2021, I sent an email to Erin Boudreau, AAM’s senior marketing manager in which I asked her some of the questions that I asked here. She responded with links to two fact sheets (here and here), neither of which struck me as especially helpful.
Because of that, I wrote last week’s item without checking in with AAM again. I immediately heard from Boudreau, but still without the information I was looking for. Now, I have no reason to believe that Boudreau was being deliberately obtuse, and I’m also aware that AAM is at the mercy of the newspapers that pay them. AAM’s job is to be accurate and rigorous, but they’re dependent on the data that publishers provide.
In any case, I decided to try again with Boudreau, asking her a series of specific questions expanding on what I asked her a year and a half ago.
The Burlington Free Press of Burlington, Vt. Photo (cc) 2019 by Dan Kennedy.
In reporting on the newspaper business, there are few matters more obscure or maddening than determining paid digital circulation. My example for this morning is the Burlington Free Press, a Gannett-owned daily that, I wrote recently, will soon be printed in either Auburn, Massachusetts, Worcester or Providence, hours away from its home base in northern Vermont.
The change is the result of the giant newspaper chain’s decision to shut its printing plant in Portsmouth, New Hampshire, which will affect several other papers as well. Gannett’s standard defense of moves like this is that they’re shifting to digital, so print doesn’t matter that much. But as I observed at the time, the Free Press sells more than twice as many print papers as it does digital subscriptions.
My item prompted someone to send me a “confidential and internal” Gannett circulation report.
On the latest “What Works” podcast, Ellen Clegg and I talk with Victor Pickard, a professor of media policy and political economy at the Annenberg School for Communication at the University of Pennsylvania. Before he was at Penn, he taught media studies at NYU. He is the author of several books, including “Democracy without Journalism,” which I reviewed a couple of years ago for GBH News.
Pickard has contributed to the debate about the local news crisis in many different settings. He worked on media policy in Washington at the New America Foundation, and he served as a policy fellow for former U.S. Congresswoman Diane Watson.
I’ve got a Quick Take on a legislative proposal that’s now being considered in Massachusetts, inspired by a federal bill that died in the last session. The proposal would provide tax credits to anyone who subscribes or donates to a local news organization.
Ellen’s Quick Take is on something close to home. She’s joined a group of Brookline residents who are launching an independent nonprofit news site called Brookline.News. The steering committee has been raising funds, and is recruiting for a founding editor-in-chief.
The Carlisle Mosquito, a free nonprofit weekly newspaper that has long stood as an example of how a community can take care of its own news and information needs, is in trouble. “We need at least $125 — at least $10 a month — from every household in town,” says a front-page editorial. “And we need those who can afford to give more to do so.”
The Mosquito spends about $44,000 a year on print and distribution, which adds up to about a fifth of its annual budget. “Ad revenues,” the editorial says, “have been declining for years.” I’m not sure why they’ve stuck with print, but they know their community better than I do. The editorial says that the paper’s top editors earn just $15,000 to $25,000 for what I have to assume are part-time positions.
I hope the Mosquito, which serves a wealthy rural community of about 5,000, can find a way forward. If it can’t, maybe The Concord Bridge, a well-funded nonprofit digital and print hybrid that was recently launched in a neighboring community, can provide some coverage.
The New Bedford Light is hiring an editor-in-chief. Congratulations to founding editor Barbara Roessner for getting this important project off the ground and moving in a good direction.
By now it is widely understood that local news is in crisis. The United States has lost a fourth of its newspapers since 2005, and the loss has led to such ills as lower voter turnout in local elections, more political corruption, and the rise of ideologically driven “pink slime” websites that are designed to look like legitimate sources of community journalism.
Even in the face of this decline, though, hundreds of local news projects have been launched in recent years, from Denver, where The Colorado Sun was launched by 10 journalists who’d left The Denver Post in the face of devastating cuts, to MLK50, which focuses on social justice issues in Memphis. Some are nonprofit; some are for-profit. Most are new digital outlets; some are legacy newspapers. All of them are independent alternatives to the corporate chains that are stripping newsrooms and bleeding revenues in order to enrich their owners and pay down debt.
This trend is happening in the Boston suburbs, too, as Gannett, the country’s largest newspaper chain, has closed many of its weekly newspapers and shifted most of those that remain from local to regional news. Affluent communities such as Marblehead, Concord, Bedford, and Lexington are all home to startups, with more scheduled to come online this year. So, too, is New Bedford, a gritty, working-class city where the nonprofit The New Bedford Light is filling much of the gap created by the shrinkage of Gannett’s daily The Standard-Times. (I’m also hoping to help facilitate a news startup in the community where I live.)
But these projects all must deal with the headwinds of chain owners. Gannett, a publicly traded company that controls about 200 daily papers, and the hedge fund Alden Global Capital, with about 100, have a stranglehold on readership and advertising in many communities, even where they offer little in the way of news and information.
Which raises a question: What if corporate chain ownership could somehow be made to disappear? As it happens, there are several Massachusetts examples that offer lessons for what happens when the slash-and-burn out-of-town owner sells to local interests.
Take Nantucket. Marianne Stanton, editor and publisher of The Inquirer and Mirror, purchased the weekly from Gannett in 2020 with the help of David Worth, a local businessman. Since then, she said in an interview, she’s expanded the editorial staff from four to seven full-time positions, upgraded the computer system, and boosted marketing and circulation efforts.
“We are doing this off of the revenues we earn,” she said, adding that Gannett had been planning to cut the budget and replace much of the local coverage with regional news even though “we were profitable, we were doing well.”
In Pittsfield, the story is similar. In 2016, a group of four local business leaders bought from Alden three small papers in southern Vermont as well as The Berkshire Eagle, once one of the most respected small dailies in the country, which had to slash much of its coverage following repeated budget cuts by Alden. They added staff, increased the size and improved the quality of the newsprint, and expanded coverage in areas such as investigative reporting and culture.
The upward trajectory has been somewhat uneven. In 2020 the Eagle cut back the number of days it offers a print paper from seven to five, a move that Fredric Rutberg, president and publisher, said was accelerated because of the challenges posed by the COVID-19 pandemic. The following year, the owners sold the Vermont properties. Still, there is little question the Eagle is doing far better than it would have under continued Alden ownership.
Rutberg said he believes that many more newspapers may be acquired by local owners as the chains realize that the economies of scale they hoped for may not exist. But what if that process could be speeded up? What if chain owners could be given incentives to unload their papers?
It’s something that Steven Waldman has been thinking about. The founder of Rebuild Local News, a coalition of more than 3,000 news and civic organizations, Waldman has put together a plan called Replanting Newspapers into Communities aimed at making it easier for the chains to sell and for local interests to buy. One of its goals is proposed federal legislation that would provide tax credits, pension relief, and loan guarantees for buyers that have a public service mission, and a range of tax incentives for chain newspaper owners to sell to such buyers. The proposal would also impose limits on new acquisitions by chain owners.
“I think we are in a new era where people understand that public policy has to be an important part of the discussion about how to save local news,” Waldman said in a recent podcast interview.
At a time of intense polarization at the national level, local news can be a way to bring us together — but overcoming the pernicious effects of corporate chain journalism is essential to providing the news and information we need to for self-governance. Independent local ownership is proving it can be done, one community at a time.
Dan Kennedy is a professor of journalism at Northeastern University. His latest book, “What Works in Community News,” coauthored with former Globe editorial page editor Ellen Clegg, who is launching a nonprofit news startup in Brookline, is scheduled to be published in 2024.
There is no substitute for journalism. For-profit legacy newspapers may no longer muster enough reporting capacity to cover their communities — especially if they’re owned by a corporate chain or a hedge fund. But independent journalism with reporters, editors and ethical standards are fundamental to providing the public with the news and information it needs to govern itself in a democracy.
Today we are seeing an explosion of independent local news outlets, mostly digital, mostly nonprofit. It’s happening in the Boston area and across the country. Yet a different kind of vision, stretching back to the earliest days of the web, persists: that members of the public can take charge of at least some of their own information needs. We used to call these people citizen journalists, and it became fashionable to sneer when that vision fell short of its most idealistic expectations. Yet it persists in some quarters and — harnessed properly — could still prove useful to grassroots democracy and storytelling.
Last week a report called “The Roadmap for Local News: An Emergent Approach to Meeting Civic Information Needs” was released by three respected media thinkers — Elizabeth Green of Chalkbeat, Darryl Holliday of City Bureau and Mike Rispoli of Free Press. Based on interviews with 51 thought leaders in local news, the report calls for reorienting ourselves from journalism to civic information in solving the local news crisis.
Because of that, I wrote last week’s item without checking in with AAM again. I immediately heard from Boudreau, but still without the information I was looking for. Now, I have no reason to believe that Boudreau was being deliberately obtuse, and I’m also aware that AAM is at the mercy of the newspapers that pay them. AAM’s job is to be accurate and rigorous, but they’re dependent on the data that publishers provide.
