Category: Local News

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

Photo (cc) 2011 by Seth Anderson

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:

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

Photo (cc) by Fir0002/Flagstaffotos

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

Photo (cc) 2011 by Michael Licht

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

Why The New York Times’ acquisition of The Athletic could create an existential crisis for local news

Previously published at GBH News.

Imagine that you’re the editor of a big-city daily newspaper whose reporting staff has been slashed by its corporate owner. You struggle to cover the basics — local politics, business, the arts. But you’ve managed to preserve a fairly robust sports section. After all, a lot of your readers are avid fans. If they no longer needed to come to you for coverage of their favorite teams, then your circulation, already sliding, would fall off a cliff.

Well, your worst nightmare just came true. The New York Times Co.’s announcement last Thursday that it was buying The Athletic represents nothing less than an existential crisis for regional newspapers.

The Athletic is a five-year-old website that covers sports — not just national sports, but local sports as well. If sports is the only reason you haven’t stopped subscribing to your local newspaper, that’s about to change. You’ll soon be able to buy a digital subscription to The New York Times that includes The Athletic’s coverage.

“This acquisition should make mid-market metro newspaper publishers shudder,” wrote David Skok, a former top editor at The Boston Globe who’s now the editor of a Canadian business website he founded called The Logic. “The Times can now offer a unique bundle of international, national and local news that offers readers a value proposition better than that of many local newspapers with eroding sports coverage and whose news sections largely consist of wire copy from The Associated Press, Reuters and even The New York Times’ syndication service.”

The Times Co.’s acquisition of The Athletic was a certified big deal. The company paid $550 million in cash, making it the Times’ largest takeover since it purchased The Boston Globe for $1.1 billion in 1993, according to Alex Webb of Bloomberg Businessweek. (The Times Co. sold the Globe to Red Sox principal owner John Henry in 2013 for $70 million — among the more devastating markdowns in media history.)

The Athletic, with 1.2 million subscribers, will help push the Times’ paid circulation for all of its projects from about 8 million closer to its goal of 10 million. The Athletic is currently a money-loser, but, as Webb writes, the Times Co. will seek to close the gap by selling more advertising and by “cross-selling the products: persuading existing Times subscribers to pay for the Athletic and vice versa.”

That strategy has already proven successful with other Times products such as its Cooking app and Wirecutter, a consumer recommendation site that it acquired several years ago. Although the Times Co. hasn’t announced exactly how The Athletic will be priced, it seems likely that it will be included with its All Access digital subscription and sold separately to those who have a cheaper Basic subscription, or no Times subscription at all.

It’s the attractiveness of getting The Athletic bundled with an All Access subscription to the Times that has got to be causing local newspaper executives to break into a cold sweat. You might think that the best way for local newspapers to fight back is by offering quality. And, of course, there’s something to that. But cultural changes, not just newsroom reductions, put local news at an enormous disadvantage.

We are living at a moment when national trends trump anything taking place at the local level. We follow national news avidly — if not quite as obsessively as we did during Donald Trump’s presidency — while paying less and less attention to what is going on in our communities. Even local school committee races are dominated by national issues such as critical race theory rather than math scores and who can most effectively negotiate a new contract with the teachers union.

Given those trends, a high-quality regional paper like the Globe may not be safe from the Times-Athletic juggernaut. The economies of scale being what they are, an All Access subscription to the Times is actually a little bit cheaper than a digital subscription to the Globe. In addition, surely there is a contingent of Globe readers who come for the sports and don’t care all that much about the paper’s comprehensive regional coverage. It’s a good thing that the Globe’s sports reporting continues to be as strong as it is.

Aron Pilhofer of Temple University puts it this way: “The Times has placed itself in direct competition with every local news site for the same pool of subscribers. And since the average number of news sites people will pay for is one, that is very bad news indeed for local legacy news organizations.”

What’s especially disconcerting is that the Times is pulling away from the journalistic pack to an extent that couldn’t have been imagined a few years ago. Since the late aughts, the paper has avoided a close call with bankruptcy, moved far ahead in its competition with the resurgent Washington Post and now is threatening to overwhelm large swaths of the regional media ecosystem.

At a time when local news is in crisis, with newsrooms downsizing and papers closing, the Times’ dominance is starting to look like a threat to our ability to inform ourselves about what’s taking place in our communities and neighborhoods.

The acquisition of The Athletic may be good for the Times. It remains to be seen whether it’s good for democracy.

How local news can ease polarization: Our conversation with Joshua Darr

Joshua Darr

Joshua Darr, a professor at Louisiana State University, is right in the “What Works” sweet spot: His research delves into the divisive partisan rhetoric that infuses our national political debate and whether communities with a vibrant local news source experience less polarization.

In the latest “What Works” podcast, Ellen Clegg and I talk with Darr about his research, as well as the Trusting News project report on how local and regional news organizations can do a better job of connecting with conservative audiences.

In addition, I offer a quick take on plans by Axios to expand local news sites into 25 cities in 2022, and Ellen looks at a promising network of nonprofit newsrooms planned across Ohio.

You can listen here or on your favorite podcast app.

Why Phil Balboni has turned his attention to local news

Phil Balboni. Photo (cc) 2016 by Sylvia Stagg-Giuliano.

Phil Balboni is a journalistic legend. His latest venture is DailyChatter, a nonpartisan newsletter that covers international news. The newsletter’s staff of experienced journalists based in Europe, Asia and the United States searches for “meaning and context in this immensely complex world.”

Before creating DailyChatter, Balboni was the founder, president and CEO of GlobalPost, the highly acclaimed international news site he launched in 2008. He was also the founder and president of New England Cable News, and was vice president of news and editorial director for WCVB-TV (Channel 5) in Boston. He has been awarded almost every major honor in broadcasting, including the Peabody, Murrow and Emmy.

In our latest “What Works” podcast, Balboni talks with Ellen Clegg and me about his passion for local news as well as his hopes for a newly created professorship at the Columbia School of Journalism that was endowed in his honor.

In Quick Takes, I analyze the danger to the First Amendment posed by a New York court judge who ordered The New York Times to stop publishing confidential documents it had obtained about the notorious right-wing organization Project Veritas.

Ellen weighs in with news from Texas, where a right-wing activist named Frank Lopez Jr. is flooding the zone with disinformation about immigration, taking advantage of the void created when the local newspaper shut down.

You can listen here or on your favorite podcast app.

The Bedford Citizen’s ad-rich annual guide gets a shoutout from Editor & Publisher

Over the past few years, revenues at The Bedford Citizen, a nonprofit community website in the Boston suburbs, have ramped up from zero to more than $100,000 a year. The Citizen has done it through voluntary memberships, sponsors, grants, the NewsMatch program and — perhaps most significant — an annual glossy publication called The Bedford Guide.

The Guide is a 64-page magazine that serves as an introduction to the town. It is loaded with ads, and from what I can tell, all of them are local, from life sciences giant Millipore Sigma, which has a facility in Bedford, to the Cat Doctor. According to the Citizen’s executive director, Teri Morrow, the 2022 Guide (the third) which came out in December, will produce about $40,000 in revenues.

Now Gene Kalb, a Citizen board member who’s the main force behind the Guide, has been recognized by the trade magazine Editor & Publisher as one of its “Sales Supernovas.” He told E&P’s Robin Blinder that flexibility is a key to the Guide’s success, explaining:

The pandemic hit us just as we started our second annual Bedford Guide. The initial strategy was to approach retail establishments in town. During 2020 with almost all restaurants and retail establishments closed, we shifted our focus to larger corporate industries in town. Our publication is all about supporting our community, and the corporate neighbors in town stepped up to help us. With the retail landscape improving this year, we had a nice combination of retail and corporate advertisers.

Such revenues have allowed the Citizen to grow from an all-volunteer project to a news organization with paid employees — a managing editor, a part-time reporter and a part-time operations manager — as well as freelance fees for contributors.

Founded in 2012, the Citizen continues to grow in other ways as well. According to Google Analytics, the site had more than a million page views in 2021. Those of us who follow such things know that’s a statistic of limited value, but here’s another that’s rock-solid: about 2,200 people have subscribed to the Citizen’s free daily newsletter in a town with fewer than 5,400 households, for a penetration rate of more than 40%. (Caveat: Email being what it is, no doubt there are a number of families with more than one subscription.)

The Citizen is one of the projects that Ellen Clegg and I are tracking for our “What Works” book project. It’s encouraging to see how people in the community have come together to create a vibrant and sustainable source of local news.

WHAV Radio takes note of the 200th anniversary of The Haverhill Gazette

The Haverhill Gazette in the early 1900s. Photo via WHAV.

The Haverhill Gazette marked its 200th anniversary in 2021, and WHAV Radio has taken note of the occasion in a lengthy tribute. The Gazette, an independently owned daily for most of its existence, launched WHAV in 1947 under the auspices of a publisher who was distantly related to the Taylor family, which then owned The Boston Globe. The station was revived about 15 years ago and converted to a nonprofit, low-power FM station (it also streams) by local advertising executive Tim Coco, who continues to run it as an independent source of news.

Coco and David Goudsward trace the Gazette from its founding in 1821 to the present day. I had no idea that Haverhill’s favorite son, the poet John Greenleaf Whittier, was the editor for a brief period in the 1830s.

A long series of events that led to the shrinkage of the Gazette began in 1957, when William Loeb, the notorious right-wing publisher of the Manchester Union Leader (now the New Hampshire Union Leader), took advantage of a strike at the Gazette by starting a competing paper, the Haverhill Journal. Coco and Goudsward write that the Gazette was sold to a consortium comprising The Eagle-Tribune, then of Lawrence, now of North Andover; The Sun of Lowell; and Vermont’s Burlington Free Press.

John Greenleaf Whittier. Image via the National Portrait Gallery.

Although the arrangement somehow managed to pass antitrust muster, I’m old enough to recall stories that The Eagle-Tribune and The Sun weren’t going to let the Gazette get too good. The Gazette changed hands several more times and in 1998 was sold to The Eagle-Tribune. Today, the Gazette is a weekly. Both the Gazette and The Eagle-Tribune, which remains a daily, are owned by CNHI, a corporate newspaper chain based in Montgomery, Alabama. As Coco and Goudsward write of the Gazette:

It is better off than the thousands of newspapers that have succumbed in recent years, but still a shadow of its former self — the victim, first of consolidation that reduced it from a robust daily to a weekly, and then of the loss of its advertising base to electronic media.

For several years, I followed news coverage in Haverhill quite closely, as it was the first community chosen by the Banyan Project in which to launch a cooperatively owned news organization, to be known as Haverhill Matters. The idea never came to fruition despite years of planning. During those same years, Coco was building WHAV into a vital source of local news and information, both over the air and online.