Category: Local News

The post-Trump media slump creates an opportunity for local news

A report from Axios on the end of the Trump effect is getting a lot of attention. What I’m referring to is the enormous boost that the Trump presidency gave the national media, especially in 2020 and into January 2021, as we tried to absorb a presidential election ending in insurrection, a global pandemic, an economic collapse, and a coming to terms with racial justice and police violence.

As I noted several months ago, news audiences were falling off as early as March. What’s notable about the Axios story is that the shrinkage has followed a pattern. Mainstream, relatively nonpartisan media outlets such as The New York Times, The Wall Street Journal, USA Today and Reuters experienced the lowest amount of deterioration, a relatively modest 18%. Liberal and progressive media such as Mother Jones and Raw Story were off by 27%. And right-wing media such as Newsmax and The Federalist dropped by 44%.

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There have been some complaints about methodology — especially the decision to label Mother Jones as “far left” but Fox News as merely “right-leaning.” Clara Jeffery, the editor-in-chief of Mother Jones, certainly has a legitimate complaint:

Still, the notion that quality news has suffered less than right-wing outlets promoting Trump’s Big Lie about his election defeat certainly has some merit. The mainstream media are far from perfect, but the journalism they practice is built to last.

Another point: What this really speaks to is the nationalization of the culture and the opportunity this moment might present. For the past five years, Donald Trump has sucked all the oxygen out of the room. This has coincided with the collapse of local news — a collapse that began around 2005, but that accelerated during the Trump years.

The decline of interest in national news documented by Axios ought to be seen as healthy. Quality local news outlets can take advantage of this moment to re-engage their communities. Of course, local newspapers owned by corporate chains will do no such thing. But the rising number of independent news projects are already finding ways of connecting with their audience.

What local news can offer is journalism that’s relevant to people’s everyday lives.

The Capital Gazette overcame mass murder only to be done in by corporate ownership

Photo via “On the Media”

The public radio show “On the Media” offered a terrific special hour-long broadcast over the weekend — a deeply reported piece on the Capital Gazette in Annapolis, Maryland, where five journalists were killed in a mass shooting three years ago today.

The story follows the newsroom through the shock of the shooting and the newspaper’s halting recovery. Sadly, as the last part of the hour unfolds, we learn that the journalists overcame the worst horror imaginable only to be done in by their corporate owner, Tribune Publishing. In the closing minutes, things go from bad to worse, as the hedge fund Alden Global Capital purchases Tribune.

By the way, what “On the Media” ran was a compressed version of a two-hour series that was part of the NPR podcast “Embedded,” which had not been on my radar until now. Outstanding and important work.

 

Soon-Shiong ducks question on why he didn’t move to stop Alden from buying Tribune

Patrick Soon-Shiong. Photo (cc) 2019 by the World Economic Forum.

Billionaire Los Angeles Times owner Patrick Soon-Shiong evaded the question when CNN’s Brian Stelter asked him on the new “Reliable Sources” podcast why he didn’t intervene to prevent Alden Global Media from acquiring Tribune Publishing.

Here’s the exchange:

Stelter: Patrick, there are people who want to know why, with the Alden deal, you didn’t step in. This is the deal where Tribune was being taken over by the hedge fund Alden Global Capital. You are the biggest outside shareholder. You could have stepped in. There’s questions about why you decided to abstain, why you decided not to stop that from happening. Can you share with us why?

Soon-Shiong: Well, look, you know, I was a passive shareholder, and it was really important for the board to do what it has to do with regard to the rest of the Tribune holdings. I’ve got my hands full and frankly, really committed to the LA Times and San Diego Union-Tribune.

A quick recap: Alden, the worst newspaper owner on the planet, paid $633 million last month to boost its share of Tribune’s nine major-market dailies from 32% to 100%. Soon-Shiong, who held 25% of Tribune’s shares, could have just said no and given Baltimore hotel magnate and philanthropist Stewart Bainum more time to pull together his own deal.

Instead, Soon-Shiong abstained, and he did it in such a way that the deal was allowed to go through. That is, if he had formally abstained, the sale would have been stopped.

And now Alden is decimating Tribune’s newspapers, just as it has with its 100-paper MediaNews Group chain.

Previous coverage.

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S.C. newspaper is being transferred from Gannett to local ownership

The weekly newspaper in Barnwell, South Carolina, is being acquired from Gannett by a local owner. The People-Sentinel reports:

Barnwell native Jonathan Vickery, who is currently the newspaper’s editor, has entered into an agreement with the current owner, a subsidiary of Gannett Media Corp., to take over ownership on July 1. The newspaper was last locally owned by the late Bob and Kathy Harris who sold the newspaper in 1983 to Community Communications Spartanburg and retired.

We need more of this. And check out the funky website.

Why revelations about Alden’s acquisition of Tribune should force a do-over

Photo (cc) 2012 by the Chicago Tribune

Could Alden Global Capital’s acquisition of Tribune Publishing be headed for a do-over? Julie Reynolds, who’s been reporting on the hedge fund’s evisceration of newspapers for years, has written a fascinating story for the Nieman Journalism Lab suggesting that the $633 million deal may have been illegal.

Alden, which already owned 32% of Tribune’s papers, pledged to pay $375 million in cash in order to bring its share up to 100%. But Reynolds reports that Alden didn’t actually have the cash, a fact that may have been known only to the three members of Tribune’s board who were affiliated with the hedge fund.

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As soon as the transaction was consummated, Alden forced the papers to borrow about $300 million. That included $60 million from Alden’s other newspaper chain, MediaNews Group, at an eye-popping interest rate of 13%. As everyone predicted, Alden has gone on a cost-cutting rampage, offering buyouts throughout the chain.

Nieman Foundation curator Ann Marie Lipinski, a former editor of Tribune’s largest paper, the Chicago Tribune, tweeted, “The scale of talent leaving the Chicago Tribune is staggering.”

Reynolds also reports that the full Tribune board may have been left in the dark about a private meeting that Tribune board member and Alden founder Randall Smith had with Baltimore hotel magnate Stewart Bainum last year.

You may recall that Bainum had initially worked out an agreement under which Alden would buy Tribune’s nine major-market dailies and then sell one of them, The Baltimore Sun, to Bainum, who planned to donate it to a nonprofit organization. After Bainum concluded that Alden was trying to gouge him, he tried to put together a bid for the entire chain. Most if not all of the papers would have been spun off to local buyers. But he was never able to put together a firm offer, and the board went with Alden instead. Alden is keeping all nine papers, including the Sun.

As Reynolds notes, the Tribune board spurned Bainum’s higher offer because the financing was not in place — and ignored the reality that Alden’s wasn’t in place, either. She writes:

Given the healthy profits Tribune has generated over the last several quarters, the cuts are there for just one reason: to achieve higher margins for Alden. Randall Smith will get richer while communities served by Tribune are starved of the information they need.

If Reynolds is correct in asserting that laws were broken in order to pave the way for Alden’s acquisition of Tribune, then the punishment ought to be more than a fine and a slap on the wrist. The sale should be voided and the Tribune board should be forced to vote again.

Maybe this time Patrick Soon-Shiong, the billionaire owner of the Los Angeles Times, can be persuaded to stop Alden. As a 25% owner of Tribune before the sale, Soon-Shiong could have said no. Instead, he abstained, and did it in a manner that allowed the transaction to go through.

I’m also lighting up the Bat Signal again for Jeff Bezos.

Previous coverage.

Are cooperatively owned news projects an idea whose time has finally come?

Kevon Paynter. Photo via Bloc by Block News.

Among the more intriguing business models for news organizations is the co-op. They’ve been slow to get started, but their time may finally be coming. For years I followed the Banyan Project’s efforts to launch a demonstration site in Haverhill, Massachusetts, which ended up falling short. The Mendocino Voice is transitioning from for-profit to a co-op that will be owned by employees and readers. And the Voice is not alone.

Last week I sat in on a webinar called “Cooperatives in a Changing Media Landscape,” part of the Next Gen Entrepreneurship online conference. Two people immersed in co-ops discussed their experience: Kevon Paynter, co-founder and executive director of a project called Bloc by Block News, which reports on news in Maryland and aggregates the work of other publishers; and Jasper Wang, the co-owner and vice president of revenue and operations at The Defector, a mostly sports site founded by former employees of Deadspin, which in its heyday was part of the Gawker network. The moderator was Olivia Henry, a graduate student at the University of California in Davis.

The two projects are very different. The Defector was born big, launching last year with 19 employees — 18 of them editors and writers — and 10,000 subscribers. It currently has 39,000 subscribers. According to Wang, everyone is being paid a salary. The lowest is $58,500, with the possibility of making more depending on how much revenue the site is generating. (It’s more complicated than that, but never mind.)

Jasper Wang. Photo via McSweeney’s.

“We’ve been financially sustainable since pretty early on,” Wang said. The site is owned by the employees, he added, with everyone participating in the governance of the site.

For those of us who are concerned about the local news crisis, Bloc by Block is intriguing. Paynter said the spark for it came during the 2016 election. When he went home to New Jersey to vote, he said, he knew who he would cast his presidential ballot for — but he didn’t have a clue about many of the other offices that were also being contested.

“I had no idea who to vote for when it came down to the local issues,” he said. He added that when he started talking with people after the election, many told him they simply vote for one party, Google the candidates or “we kind of make a guess the night before.”

Bloc by Block is supported by nonprofit foundation money, including Maryland Humanities; Paynter sees covering the arts and culture as part of his local news mission. The project is developing a mobile app that will allow users to see news from multiple publishers. Noting that there are more than 130 newspapers in Maryland, Paynter said, “There’s a discoverability issue, and we want to solve for that.”

Unlike The Defector, Bloc by Block is what Paynter calls a “multi-stakeholder cooperative,” with ownership shared among readers and the publishers whose news is being aggregated. Readers themselves can cover local governmental and neighborhood meetings, he added.

“It’s really about civic engagement as well as news,” he said, explaining that he wants his audience to “not simply be passive consumers of information but active participants.”

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Bringing a new Light to the undercovered community of New Bedford

Palmer’s Island Lighthouse in New Bedford Harbor. Photo (cc) 2010 by the Massachusetts Office of Travel and Tourism.

The New Bedford Light, a nonprofit news project launched recently, could lay claim to being the most highly touted community journalism organization in quite some time. Today, The New York Times weighs in. Previously, The Boston Globe and CommonWealth Magazine ran profiles.

As the Times’ Katharine Q. Seelye notes, the Light’s model is to run one significant story a day in the hopes of filling the gap created by the implosion of The Standard-Times, a venerable New Bedford daily that has been ripped apart under the ownership of the Gannett chain.

“We cannot go down the route of the daily newspaper that tries to do all things for all people,” the editor, Barbara Roessner, told Seelye. “The challenge for us is to stay disciplined to do the deeper work and not be caught up in the daily news cycle.”

I’m not so sure about that. As I’ve written previously, what the city might need more than anything is daily accountability journalism. It can be done effectively with a small staff, as the New Haven Independent, to name one example, has been demonstrating for nearly 16 years.

Still, the Light is attractive and has published some significant stories since its debut. Leading the site right now is a story by Will Sennott on the city’s looming eviction crisis. Other recent stories include a look at the effects of rising real-estate prices and racial and ethnic patterns of where COVID-19 hit the New Bedford area the hardest.

The leadership of the Light is unusually high-powered. Roessner is a former managing editor of the Hartford Courant and former executive editor of the Hearst Connecticut Media Group. The publisher is Stephen Taylor, a former top executive of The Boston Globe as well as a member of the family that used to own the Globe. Walter Robinson of “Spotlight” fame is a board member.

It looks like the Light should go a long way toward changing New Bedford’s status as an undercovered community.

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Bipartisan federal legislation would provide tax credits to ease the local news crisis

Bipartisan legislation has been introduced in Congress that would provide some government support for local news. The ubiquitous Steve Waldman, the co-founder of Report for America and the chair of the Rebuild Local News Coalition, writes that the bill “would provide more help for local news than any time in about a century, yet it’s done in a very First-Amendment-friendly way.”

Waldman has the details, so I’ll just hit the highlights:

  • It would provide a tax credit of up to $250 each year for subscriptions or donations to local news — a measure Waldman has been talking about for quite a while.
  • Payroll tax credits would be available to publishers for hiring or retaining journalists.
  • Small businesses would receive a tax credit for advertising in local news outlets.

The bill, known as the Local Journalism Sustainability Act, is co-sponsored by Reps. Dan Newhouse, R-Wash., and Ann Kirkpatrick, D-Ariz.

My reservation about this legislation is that would benefit chain-owned papers as much as it would independent papers and websites. I guess that’s OK, and it’s hard to imagine how to cut out the corporations while keeping benefits for independents. But I’m concerned that the legislation might freeze in place the advantage already held by corporate-owned legacy outlets without providing them much in the way of an incentive to improve their journalism.

On the other hand, I agree with Waldman that the legislation is ingenious in the way that it would provide government support for local news without making news organizations dependent on currying favor with the very people they’re covering. Another smart move: benefits would be limited to organizations with fewer than 750 employees, which would leave out the large national newspapers.

Overall, it’s a pretty interesting step that might help ease the local news crisis. I don’t see this as a comprehensive solution, but even a boost on the margins would help.