Local News – Page 50 – Media Nation

Help local news? Sure. Force Google and Facebook to pay? Probably not.

Sen. Amy Klobuchar meets a fan in Iowa. Photo (cc) 2019 by Gage Skidmore.

For years now, news executives have been complaining bitterly that Google and Facebook repurpose their journalism without paying for it. Now it looks like they might have an opportunity to do something about it.

Earlier this week a Senate subcommittee chaired by Sen. Amy Klobuchar, D-Minn., heard testimony about the Journalism Competition and Preservation Act (JCPA), sponsored by her and Sen. John Kennedy, R-La. The bill would allow representatives of the news business to bargain collectively over a compensation package with Google and Facebook without running afoul of antitrust laws. If they fall short, an arbitrator would impose a settlement.

“These big tech companies are not friends to journalism,” said Klobuchar, according to an account of the hearing by Gretchen Peck of the trade magazine Editor & Publisher. “They are raking in ad dollars while taking news content, feeding it to their users, and refusing to offer fair compensation.”

There’s no question that the local news ecosystem has fallen apart, and that technology has a lot to do with it. (So do the pernicious effects of corporate and hedge-fund ownership, which has imposed cost-cutting that goes far beyond what’s necessary to run a sustainable business.) But is the JCPA the best way to go about it?

The tech giants themselves have been claiming for years that they provide value to news organizations by sending traffic their way. True, except that the revenues brought in by digital advertising have plummeted over the past two decades. A lawsuit brought by newspaper publishers argues that the reason is Google’s illegal monopoly over digital advertising, cemented by a secret deal with Facebook not to compete.

Though Google and Facebook deny any wrongdoing, the lawsuit strikes me as a more promising strategy than the JCPA, which raises some serious questions about who would benefit. A similar law in Australia has mainly served to further enrich Rupert Murdoch.

Writing at Nieman Lab, Joshua Benton argues, among other things, that simply taxing the technology companies and using the money to fund tax subsidies for local news would be a better solution. Benton cites one provision of the Build Back Better legislation — a payroll tax deduction for hiring and retaining journalists.

In fact, though, the payroll provision is just one of three tax credits included in the Local Journalism Sustainability Act; the others would reward subscribers and advertisers. I have some reservations about using tax credits in a way that would indiscriminately reward hedge-fund owners along with independent operators. But I do think it’s worth a try.

Even though local news needs a lot of help, probably in the form of some public assistance, it strikes me that the Klobuchar-Kennedy proposal is the least attractive of the options now on the table.

How local news helped Callie Crossley with her research for ‘Eyes on the Prize’

Callie Crossley of GBH News is a multitalented broadcast journalist and producer. She hosts “Under the Radar with Callie Crossley” and shares radio essays each Monday on GBH’s “Morning Edition.” She also hosts “Basic Black,” which covers news events that have an impact on communities of color. Crossley’s work on “Eyes on the Prize: America’s Civil Rights Years” won numerous awards.

In a wide-ranging conversation with Ellen and Dan, Crossley shares her views on the thinning out of local news outlets and offers sage advice for next-generation journalists. Callie and Dan were regulars on “Beat the Press,” the award-winning GBH-TV show that featured media commentary, which ended its 22-year run in 2021. In 2019, both of them received the Yankee Quill Award from the New England Society of Newspaper Editors.

In Quick Takes on developments in local news, Dan laments the rise of robot journalism, and Ellen reports on an effort by publisher Lee Enterprises to fight off a takeover bid by the hedge fund Alden Global Capital.

You can listen to our conversation here and subscribe through your favorite podcast app.

Exploring the limits of free speech in nonprofit editorial sections

Lately I’ve been trying to figure out the where the line is for free speech in the editorial sections of nonprofit news organizations. I know they can’t endorse political candidates lest they lose their nonprofit status, the result of a law rammed through the Senate by Lyndon Johnson back in the 1950s. And a few people have told me that nonprofits can’t endorse specific legislation, either.

But what else? When Ellen Clegg and I asked Art Cullen, editor of Iowa’s Storm Lake Times, on the “What Works” podcast if he’d considered taking the Times nonprofit, he said he hadn’t because he was afraid he wouldn’t be able to write editorials. Cullen won the Pulitzer Prize for editorial writing in 2017.

Well, here’s a concrete example. The Salt Lake Tribune — the first major daily newspaper in the U.S. to become a nonprofit — recently ran a tough editorial holding state leaders to account for their failures in responding to COVID-19. It began:

That wan fluttering noise you hear coming from the direction of the Capitol building is the sound of the state of Utah waving the white flag of surrender in the battle against the COVID-19 pandemic.

It’s tragic. It’s disgraceful. And there is lots of blame to go around.

Naturally, the editorial led to death threats, as Erik Wemple reports in The Washington Post. Although the threats came after Fox News host Sean Hannity denounced the Tribune for advocating vaccine mandates, what Hannity said, in Wemple’s recounting, wasn’t even remotely a call for violence or threats. It’s just America in 2022.

The death threats notwithstanding, the Tribune’s editorial is an indication that nonprofits can in fact take a strong editorial stand on matters of public interest, including governmental actions, without risking their tax-exempt status. They should be able to endorse candidates and advocate for legislation if they so choose. But at least they are not entirely prohibited from exercising their freedom of speech.

The latest bad idea for chain newspapers: Robot reporting on real estate

Tom Breen of the New Haven Independent covers real-estate transactions the old-fashioned way. Photos (cc) 2021 by Dan Kennedy.

At least two New England newspaper publishers have begun using artificial intelligence rather than carbon-based life forms to report on real-estate transactions.

The Republican of Springfield, online as MassLive, and Hearst Connecticut Media, comprising the New Haven Register and seven other daily newspapers, are running stories put together by an outfit called United Robots. MassLive’s stories are behind a hard paywall, but here’s a taste from the Register of what such articles look like.

United Robots, a Swedish company, touts itself as offering “news automation at massive scale using AI and data science.”

Last year I wrote about artificial intelligence and journalism for GBH News. I’m skeptical, but it depends on how you use it. In some ways AI has made our lives easier by, for instance, enhancing online search and powering the inexpensive transcription of audio interviews. But using it to write stories? Not good. As I wrote last year:

Such a system has been in use at The Washington Post for several years to produce reports about high school football. Input a box score and out comes a story that looks more or less like an actual person wrote it. Some news organizations are doing the same with financial data. It sounds innocuous enough given that much of this work would probably go undone if it couldn’t be automated. But let’s curb our enthusiasm.

Using AI to produce stories about real-estate transactions may seem fairly harmless. But let me give you an example of why it’s anything but.

In November, I accompanied Tom Breen, the managing editor of the New Haven Independent, as he knocked on the doors of houses that had been foreclosed on recently. The Independent is a digital nonprofit news site.

A note Breen left behind asking the resident to call him. (Phone number removed.)

Breen has spent a considerable amount of time and effort in housing court and poring through online real-estate transactions. From doing that, he could see patterns that had emerged. Like Boston and many other cities, New Haven has experienced an explosion in real-estate prices, and a lot of owners are flipping their properties to cash in. In too many cases there are victims — low-income renters whose new landlords, often absentee, jack up the rents. Breen takes the data he’s gathered and rides his bike into the neighborhoods, knocking on doors and talking with residents. It’s difficult, occasionally dangerous work. Once he was attacked by a pit bull.

We didn’t have much luck on our excursion. No one was home at either of the two houses we visited, so Breen left notes behind asking the residents to call him.

“If investors are swapping properties at $100,000, $200,000 above the appraised value and tens of thousands of dollars above what they bought it for two days prior,” Breen told me, “all that can do is drive up costs that are passed down to the renters — to the people actually living in the building.”

The result of Breen’s enterprise has been a series of stories like this one. The lead:

Tenants of a three-family “lemon” of a house on Liberty Street are wondering how two landlords managed to walk away with $180,000 by double-selling a property that they say remains a dump.

You’re not going to get that kind of reporting from artificial intelligence.

Now, of course, you might argue — and some have, as I noted in my GBH News piece — that AI saves journalists from drudge work, freeing them up to do exactly the kind of enterprise reporting that Breen does. But story ideas often arise from immersion in boring data and sitting through lengthy proceedings; outsource the data collection to a robot, and it’s likely that will be the end of it.

Bad sign: Here’s how Breen and I were greeted at one foreclosed-upon property. (Names removed.)

At the corporate chains that own so many of our newspapers, there’s little doubt that AI will be used as just another opportunity to cut. Hearst and Advance, the national chain that owns The Republican, are not the worst or most greedy newspapers chains by any means. But both of them have engaged in more than their share of cost-cutting over the years.

And it’s spreading. United Robots’ U.S. clients include the McClatchy newspaper chain and The Atlanta Journal-Constitution, part of the Cox chain. No doubt the Big Two — Gannett and the groups owned by Alden Global Capital — won’t be far behind.

Northeastern’s Myojung Chung and John Wihbey on attitudes about regulating social media

In the latest “What Works” podcast, Professors Myojung Chung and John Wihbey, colleagues from Northeastern University’s School of Journalism, share the findings from their new working paper, published by Northeastern’s Ethics Institute.

They and their colleagues examined attitudes about the regulation of social media in four countries: the U.K., Mexico, South Korea and the U.S. With Facebook (or Meta) under fire for its role in amplifying disinformation and hate speech, their research has implications for how the platforms might be regulated — and whether such regulations would be accepted by the public.

John Wihbey

In Quick Takes, Ellen Clegg and I kick around WBEZ Radio’s acquisition of the Chicago Sun-Times, which will result in the newspaper’s becoming a nonprofit organization. We also discuss an announcement that a new nonprofit news organization will be launched in Houston with $20 million in seed money. Plus a tiny Easter egg from country artist Roy Edwin Williams.

You can listen to our conversation here and subscribe through your favorite podcast app.

Houston becomes the latest city to announce a nonprofit news project

Downtown Houston. Photo (cc) 2018 by David Daniel Turner.

Big news out of Houston, where several major philanthropies have announced they intend to raise $20 million to start a nonprofit news project — just the latest major metropolitan area to embrace nonprofit journalism.

What makes it a bit unusual is that the Houston Chronicle, the legacy daily, is owned by Hearst, generally regarded as one of the better newspapers chains. Of course, all corporate chains are problematic, but Houston is not like Baltimore, where hotel magnate Stewart Bainum is launching the nonprofit The Baltimore Banner after losing out to the hedge fund Alden Global Capital in his bid to buy The Baltimore Sun.

The Houston effort is being led by the American Journalism Project, whose chief executive, Sarabeth Berman, told the Columbia Journalism Review:

Local news is a public service — one that’s been in sharp decline. This project demonstrates that local philanthropies can, and need to, play a transformative role in rebuilding and sustaining independent, original reporting in service of communities.

Here’s an excerpt from the press release:

With an anticipated launch in late 2022 or early 2023 on multiple platforms, the new nonprofit news organization will elevate the voices of Houstonians and address the needs of the community as identified in the American Journalism Project’s extensive research. Its wide-ranging coverage will be available for free to readers as well as other news organizations.

I wish them well, of course. Still, it’s hard not to wonder if the money could go to better use elsewhere. Greater Houston residents already get first-rate coverage of state politics and public policy through The Texas Tribune, which is also a nonprofit, and the Chronicle is presumably doing a better job than your typical Alden or Gannett paper.

Click here to read the full press release.

With Chicago Public Media’s acquisition, the Sun-Times will soon go nonprofit

There’s been some confusion over Chicago Public Media’s acquisition of the Chicago Sun-Times, a tabloid that is the city’s number-two daily newspaper. For example, The New York Times reported that “the ownership structure would be similar to that of The Philadelphia Inquirer, a big-city paper that the nonprofit Lenfest Institute for Journalism has run since 2016.”

Well, no. The Inquirer is a for-profit newspaper owned by a nonprofit organization. If the Inquirer itself were a nonprofit, it would be barred from endorsing political candidates. In fact, the paper continues to endorse candidates and published an “Endorsement Guide” as recently as last fall.

What’s happening in Chicago is different. The ownership of the Sun-Times will be converted to nonprofit with its own board, according to WBEZ, the broadcast arm of Chicago Public Media. The Sun-Times itself reports that the paper will “convert from for-profit to nonprofit status.” That would make it the second major daily paper to become a nonprofit, following The Salt Lake Tribune. Recently the executive editor of the Tribune, Lauren Gustus, reported that the paper is healthy and growing under nonprofit ownership.

As I mentioned, there is one disadvantage to nonprofit ownership: news organizations can’t endorse candidates or advocate for certain legislative actions without endangering their tax-exempt status. Of course, there are plenty observers who see that as a feature rather than a bug. For instance, David Boardman, chair of the Lenfest Institute, greeted the news that the Sun-Times will no longer be able to endorse with this:

Not making endorsements is a plus. One of the great albatrosses of the newspaper business.

— David Boardman (@dlboardman) January 19, 2022

But endorsements can be useful, especially in smaller races to which voters may be paying minimal attention. Besides, it’s an infringement on free speech. Such a rule didn’t even exist until Lyndon Johnson rammed it through the Senate in order to silence political opponents back home in Texas.

In any event, with Alden Global Capital disemboweling the long-dominant Chicago Tribune, the announcement that WBEZ and the Sun-Times will soon be covering the region with a combined newsroom is good news. And it shows that people and institutions are willing to step up when market failure undermines local news coverage.

Jaida Grey Eagle on Sahan Journal, Report for America and telling the stories of Native American women

Jaida Grey Eagle. Photo via Indigenous Goddess Gang.

Our latest “What Works” podcast features Jaida Grey Eagle, a photojournalist working for Sahan Journal in Minneapolis through Report for America. She is Oglala Lakota and was born in Pine Ridge, South Dakota, and raised in Minneapolis.

Launched in 2019, Sahan Journal covers immigrants and communities of color in Minnesota. Report for America places young journalists at local news outlets across the country for two- and three-year stints.

Grey Eagle’s photography has been published in a wide range of publications and featured on a billboard on Hennepin Avenue in downtown Minneapolis. She is also a co-producer of “Sisters Rising,” a documentary film about six Native American women reclaiming person and tribal sovereignty in the face of sexual violence.

Ellen Clegg and I also offer our quick takes on paywalls and media companies that target well-heeled readers, and on Evan Smith’s announcement that he’s stepping down as chief executive officer of The Texas Tribune.

You can listen to our conversation here and subscribe through your favorite podcast app.

Antitrust suit brought by states claims Google and Facebook had a secret deal

There’s been a significant new development in the antitrust cases being brought against Google and Facebook.

On Friday, Richard Nieva reported in BuzzFeed News that a lawsuit filed in December 2020 by Texas and several other states claims that Google CEO Sundar Pichai and Facebook CEO Mark Zuckerberg “personally signed off on a secret advertising deal that allegedly gave Facebook special privileges on Google’s ad platform.” That information was recently unredacted.

Nieva writes:

The revelation comes as both Google and Facebook face a crackdown from state and federal officials over antitrust concerns for their business practices. Earlier this week, a judge rejected Facebook’s motion to dismiss a lawsuit by the Federal Trade Commission that accuses the social network of using anticompetitive tactics.

The action being led by Texas is separate from an antitrust suit brought against Google and Facebook by more than 200 newspapers around the country. The suit essentially claims that Google has monopolized the digital ad marketplace in violation of antitrust law and has cut Facebook in on the deal in order to stave off competition. Writing in Business Insider, Martin Coulter puts it this way:

Most of the allegations in the suit hinge on Google’s fear of “header bidding,” an alternative to its own ad auctioning practices described as an “existential threat” to the company.

As I’ve written previously, the antitrust actions are potentially more interesting than the usual complaint made by newspapers — that Google and Facebook have repurposed their journalism and should pay for it. That’s never struck me as an especially strong legal argument, although it’s starting to happen in Australia and Western Europe.

The antitrust claims, on the other hand, are pretty straightforward. You can’t control all aspects of a market, and you can’t give special treatment to a would-be competitor. Google and Facebook, of course, have denied any wrongdoing, and that needs to be taken seriously. But keep an eye on this. It could shake the relationship between the platforms and the publishers to the very core.

Most Gannett dailies will cut their Saturday print editions

On Wednesday afternoon a source sent me a memo from four top Gannett executives announcing that Saturday print editions will be eliminated at daily papers in 136 of the chain’s markets across the country.

I don’t know why they didn’t just say “136 dailies,” but maybe there’s a nuance that I’m missing. It sounds like the edict will pertain to pretty much all of Gannett’s dailies except for a few of the larger ones (I hear that The Providence Journal and the Telegram & Gazette of Worcester will be exempted) and those that already have just one weekend edition (like The Patriot Ledger of Quincy).

Among the local papers that will be affected, Adam Gaffin notes at Universal Hub, are the MetroWest Daily News of Framingham and the Milford Daily News. Also affected, according to announcements I found, are The Standard-Times of New Bedford, The Herald News of Fall River and the Cape Cod Times. But obviously there are many, many more.

Amusingly enough, the memo refers to this as “a new Saturday experience.”

Now, I’m a frequent critic of Gannett, but this doesn’t strike me as a terrible move — even though the price of a subscription is not being cut. The dailies already offer an e-edition that looks like print, and that will continue on Saturdays. The move cuts costs on a day when advertising is minimal. It seems likely that, eventually, all dailies, not just Gannett’s, will offer one big print edition on the weekends and go digital-only the rest of the week. This is an incremental step in that direction.

The problem, needless to say, is that Gannett has a record of cutting for the sole purpose of cutting — laying off journalists and shutting down smaller weeklies in order to bolster its bottom line and pay down its debt. The salaries it pays its reporters are a disgrace. Take, for instance, this tweet from Bethany Freudenthal, a veteran reporter for The Newport Daily News in Rhode Island, whose weekly take-home pay is just under $400 a week.

https://twitter.com/BethanyFreuden1/status/1481674340496289793

Given all that, it’s hard to credit Gannett’s elimination of Saturday print as a forward-looking move — even though it may turn out to be exactly that.

The memo, by the way, is a model of corporate-speak. Here it is in full.

Dear team,

As we kick off the new year energized with a keen focus on our North Stars, we are working collaboratively to enable our growth and further accelerate our digital strategy by evolving the print delivery experience.

To make bold progress toward our goal of 10 million digital subscribers requires that we embrace the multi-platform, connected experiences our audiences and customers expect. Our customer-obsessed approach will ensure we remain a vital part of the communities we serve across the country.

As more of our readers engage with our content online, we are introducing a new Saturday experience in 136 of our markets which transitions from delivering the Saturday print edition to providing exclusive access to the full Saturday e-Edition. Committing to our digital future ensures our resources are laser-focused on delivering unlimited access to the premium news, sports, events, and information our loyal subscribers value most. A number of markets will not be included in this transition based on specific market data. Details will be included by local managers in the coming weeks. In addition, we plan to introduce different delivery models in select markets to stimulate further learning and insights as we address the rapidly evolving digital landscape to provide our subscribers with the best experience.

We recognize the importance of Saturday for our advertising clients, and our advertising sales and service teams will be working closely with our customers to provide them with innovative, impactful digital and print options for their Saturday investment. These solutions include high impact and targeted digital display campaigns on our local websites, opportunities within our e-Editions, our industry-leading LOCALiQ digital marketing solutions, as well as alternative print advertising programs.

Our mission is unwavering: to empower communities to thrive by delivering impactful, trusted news coverage and best-in-class marketing solutions for our customers.

Thank you for being part of this team as we work together to serve our customers, execute our digital strategy, and prioritize community-focused journalism in the year (and years) ahead.

— Mayur, Maribel, Kevin & Bernie

Mayur Gupta, Chief Marketing & Strategy Officer
Maribel Perez Wadsworth, President/News at Gannett & Publisher/USA TODAY
Kevin Gentzel, Chief Revenue Officer
Bernie Szachara, President of U.S. Publishing