Category: Local News

A chain of 14 weeklies in New Jersey will convert to nonprofit ownership

Bernardsville, N.J. Photo (cc) 2012 by Doug Kerr.

I love this. A small chain of 14 weekly papers in north central New Jersey is converting to nonprofit ownership. The New Jersey Hills Media Group will work with the Corporation for New Jersey Local Media in order to make the transition — and will immediately embark on a fundraising drive with a goal of $500,000. Co-publisher and business manager Steve Parker explains the move this way:

Our family has served as stewards of these newspapers for 66 years, and we are pleased that a nonprofit group based in our communities has come forward to ensure that they will continue their mission of community journalism far into the future.

The papers — some of which are more than 100 years old — serve 52 communities in Morris, Somerset, Essex and Hunterdon counties.

According to the announcement, the chain might become the largest nonprofit group of weeklies in the country. Among large daily papers, The Salt Lake Tribune has converted to nonprofit status, while there are a handful of for-profit papers owned by nonprofit organizations — a list that includes The Philadelphia Inquirer, the Tampa Bay Times, the New Hampshire Union Leader and The Day of New London, Connecticut. And, of course, public radio stations are nonprofit news organizations.

You sometimes hear that nonprofit ownership doesn’t solve all the problems faced by shrinking newspapers, since they still have to balance the books. That’s true. But it solves a lot of the problems. Tax-exempt status and ownership by people invested in the community rather than by corporate chains and hedge funds go along way toward ensuring the future of local news.

In Somerville, as elsewhere, tough times for local news

The Boston Institute for Nonprofit Journalism has an interview with Julia Taliesin, the only reporter at Gannett’s Somerville Journal, on what it’s like to work at an under-resourced corporate-owned newspaper. Key quote:

I am acutely aware that it is absolutely impossible for me to do justice to what the city deserves in terms of news. What Somerville deserves is a handful of reporters who watch every city council meeting, or at least 90% of them, because this city council is busy. When I think of what effective news looks like, it’s just that. It’s just enough people to cover the issues. Not the press conferences and the press releases, but the actual work and the legislating that goes on.

I should note that Somerville has more than 80,000 residents. Next door, the Gannett-owned Medford Transcript hasn’t had a full-time staff reporter to cover the city’s 57,000 residents since the fall of 2019.

The FT offers a close-up look at how Alden is destroying the Hartford Courant

The state capitol in Hartford, Connecticut. Photo (cc) 2009 by Dan Kennedy.

Not too many years ago, New England was home to a number of medium-size and smaller daily newspapers that did an excellent job of covering their communities. There are a dozen or so that come to mind. But among the largest and the best were The Providence Journal and the Hartford Courant.

The Journal, as we all know, has been decimated by its corporate-chain owner, Gannett, the successor to GateHouse Media. The Hartford Courant, which bills itself as the oldest continuously published paper in the country, has been battered for years under the ownership of a chain now known as Tribune Publishing. The Courant’s printing has been outsourced, and the newsroom was shuttered recently as well. There is no indication that reporters and editors will have a place to work other than their homes even after the COVID pandemic is behind us.

As I’ve written several times recently, the hedge fund Alden Global Capital, whose MediaNews Group is widely regarded as the worst newspaper owner in operation, controls 32% of Tribune — and is seeking a majority share.

The Financial Times recently published a lengthy article on the plight of local news focused on the Courant. There is nothing new in the story — we hear about the widespread closure of community newspapers, the rise of hedge-fund ownership and other familiar themes. Nevertheless, it’s a strong overview for anyone who’s unfamiliar with the tale of what happened to a key part of democratic life.

There are also a few points that deserve to be emphasized. At a time when profits in local news are elusive at best, Alden is living high:

The cost cutting is certainly working. MediaNews Group achieved about 20-25 per cent operating margins in 2019, according to people familiar with the matter, more than double that of peers such as Gannett or even The New York Times. In 2020, although the pandemic shattered advertising and MNG’s revenues fell by 20 per cent, the company was still on track to make a profit.

The Courant itself is doing well from a bottom-line perspective as well, earning a profit of $2 million a year, according to the FT’s reporting.

What this shows is that there is still an inflow of cash into even the most moribund newspapers. Readers buy them despite their ever-decreasing value. Businesses advertise in them. If you’re willing to gut the newspapers you own to keep expenses well below income, and to keep cutting as income continues to fall, well, yes, you can earn a profit. At some point, needless to say, you’ll reach the point at which you can no longer cut. And that’s when you shut your doors. (Oops. Bad analogy. They already have.)

Heath Freeman and other officials at Alden rarely speak for the record. When Freeman cooperated with a Washington Post reporter last year, it, uh, did not go well. So I was interested to see that the FT did manage to get a comment out of a company spokesperson named Chrissy Carvalho. It was a classic:

It’s a lot easier to make snippy anonymous comments than actually undertake the difficult task of making sure news organisations across America are able to serve their communities during a prolonged period of declining revenues.

As the FT notes, there are efforts to try to get Tribune to sell the Courant to local interests. But that’s going to be hard to do given the paper’s continued profitability. The tragedy is that the crisis afflicting local news is only partly related to external factors such as technology, the decline of advertising and the rise of Google and Facebook. Corporate greed is at least as responsible.

Previous coverage:

Saving local news: Some ideas from philanthropy, business and technology

Photo (cc) 2016 by Dan Kennedy

Could the example of the late Gerry Lenfest save Tribune Publishing’s newspapers from the avaricious clutches of the hedge fund Alden Global Capital?

About a half-dozen years ago, Lenfest, a billionaire investor, unexpectedly became the owner of The Philadelphia Inquirer and its related media properties. It’s an incredibly convoluted story that I tell in “The Return of the Moguls,” but essentially he had acquired a piece of the Inquirer with the intention of flipping it, and he ended up instead with the whole thing.

Lenfest’s next move saved quality journalism in Philadelphia: In early 2016 he donated his media properties to the Philadelphia Foundation, which in turn set up a nonprofit that, after his death, became known as the Lenfest Institute for Journalism. Today the Inquirer is in far better shape than many metro dailies.

Writing for the Columbia Journalism Review, Jim Friedlich, executive director and chief executive of the institute, argues that Tribune newspapers could be saved if deep-pockets philanthropists acquired them and then emulated Lenfest — or simply ran them as for-profit enterprises, as with John and Linda Henry at The Boston Globe and Patrick Soon-Shiong at the Los Angeles Times and The San Diego Union-Tribune. Friedlich writes:

An Alden purchase of all of Tribune doesn’t have to be a fait accompli. In fact, the threat of such a deal represents an opportunity for civic-minded local investors across the country, who could use this case not only to save a critical local news institution, but to reinvent it.

Soon-Shiong continues to be a major Tribune shareholder, and I recently wrote that he should consider rescuing the chain, which includes papers such as the Chicago Tribune, The Baltimore Sun and the Hartford Courant, the oldest continuously published daily newspaper in America.

***

As we know, local news is in crisis, and that has produced a considerable amount of ferment. Most of the attention right now is on Alden’s bid for a majority share of Tribune, which involves regional rather than strictly local news organizations. But there’s a lot happening at the grassroots as well.

For instance, Sarah Scire reports for the Nieman Journalism Lab on an ambitious effort to provide local news start-ups with the support they need to launch and continue operating. Imagine a journalist who’s been laid off by a corporate-owned newspaper and who wants to start something at the hyperlocal level. Where to begin?

According to Scire, the Tiny News Collective takes care of a lot of the back-end details that journalists are usually not trained to attend to themselves. “The project,” Scire writes, “will offer entrepreneurial journalists a tech stack, business training, legal assistance, and back-office services like payroll for around $100 a month.”

The Tiny News Collective, a collaboration between News Catalyst and LION (Local Independent Online News) Publishers, is hoping to have a hand in starting news projects in 500 communities, half of them covering underserved populations.

***

Also worth watching is the Crosstown Neighborhood Newsletter project in Los Angeles — an effort to make smart use of data in order to produce a multitude of newsletters, each aimed at a tiny slice of the public. The editor, Gabriel Kahn, a professor at USC Annenberg, writes that Crosstown — “a collaboration between software engineers, designers and journalists” — recently launched 110 such newsletters in one day. He explains:

Our formula starts with data. We collect data about everything we can in Los Angeles, from traffic and crime to COVID-19 cases and building permits. Much of this data is hiding in plain sight, housed on local government dashboards that are hard to navigate. We divvy up the data by neighborhood. One citywide dataset about parking fines becomes 110 stories about how many more or fewer tickets were issued in each neighborhood during the COVID lockdown.

Crosstown reminds me of EveryBlock, a project started in 2008 by the pioneering data journalist Adrian Holovaty that was also heavily dependent on publicly available data. EveryBlock never really caught on, and it shut down in 2013. But far more information is online today than was the case a decade ago, and the tools for presenting it have improved considerably. It could be that the time for Holovaty’s idea has arrived.

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Proposal to create local news commission is sent to governor’s desk

I’m excited to report that the Legislature has approved the creation of a special commission to study the state of local news in Massachusetts and make some recommendations. This is an effort that has been two years in the making, and I’m looking forward to serving. Some background here. What follows is a press release from the co-sponsors, Rep. Lori Ehrlich, D-Marblehead, and Sen. Brendan Crighton, D-Lynn.

Legislature Sends Journalism Commission to Governor’s Desk
Commission language included in Economic Development  Package

BOSTON (1/8/2021) — State Representative Lori Ehrlich (D-Marblehead) and State Senator Brendan Crighton (D-Lynn) announced Thursday the inclusion of their journalism commission legislation, An Act establishing a commission to study journalism in underserved communities, as part of the Economic Development bill that was passed by the legislature and sent to the Governor’s desk.

This legislation, filed for the first time this session, would create a state commission to assess the state of local journalism in Massachusetts, including the adequacy of press coverage in the Commonwealth’s cities and towns and the sustainability of local press business models.

According to research at the University of North Carolina, almost 1,800 local newspapers have closed since 2004, creating growing “media deserts” with insufficient local news coverage. Hedge funds, which have higher profit margin requirements than journalism tends to generate, have recently purchased several news outlets in Massachusetts subsequently consolidating outlets and cutting staff.

“A lack of local news coverage is a fundamental threat to our democracy and civic society,” said Ehrlich. “Citizens rely on hardworking journalists to tell the stories that bind us together as communities. Trusted news sources provide a public square where shared facts and thoughtful opinion enable us to hold power to account and govern ourselves.”

“With this commission, the Commonwealth will facilitate a serious discussion among experts, reporters, and industry members about the state of local news in Massachusetts, and what fortification efforts can take place,” Ehrlich added.

“Now more than ever we need a strong and robust news media to keep our citizenry as informed as possible and to ensure accountability,” said Crighton. “It was great to work with Representative Ehrlich on this pivotal piece of legislation and I’m excited for the Commission to get to work.”

“I would like to thank Representative Ehrlich for her unremitting commitment to journalism within the Commonwealth,” said State Representative Edward F. Coppinger (D-Boston), House Chair of the Joint Committee on Community Development and Small Business. “Many communities here in Massachusetts both rely on and benefit from local news sources to obtain important information relevant to their livelihoods. These uncertain and trying times have had a significant impact on local news reporting agencies and their ability to disseminate necessary facts. We are honored to join Representative Ehrlich in combating these negative results through this crucial legislation.”

“This is great news for the future of local journalism in Massachusetts. It gives us an opportunity to study where the problems are, who’s doing it right and how we can encourage the growth of independent community news organizations,” said Dan Kennedy, Professor at the School of Journalism at Northeastern University.

“Local news outlets are the bedrock upon which American democracy is built, yet they are collapsing from the negative effects of decades of corporate media consolidation and now the coronavirus pandemic,” said Jason Pramas, Executive Director at the  Boston Institute for Nonprofit Journalism and Executive Editor and Associate Publisher at DigBoston. “The passage of the journalism commission language into law gives hope to Massachusetts journalists and the public-at-large that state government will take a serious look at this ongoing crisis and then take steps to support news organizations around the Commonwealth–in ways that keep the press free and independent, as the Founders intended.”

“Thanks very much to Representatives Ehrlich and Coppinger and Senator Crighton for their leadership on this signal piece of legislation and to all the dozens of journalists, journalism educators, and media activists that worked hard for its enactment,” he added.

The commission will conduct a comprehensive, non-binding study relative to communities underserved by local journalism,  including, but not limited to, the ratio of residents to media outlets, the history of local news in Massachusetts, print and digital business models for media outlets, the impact of social media on local news, strategies to improve local news access, public policy solutions to improve the sustainability of local press business models and private and nonprofit solutions, and identifying career pathways and existing or potential professional development opportunities for aspiring journalists in Massachusetts.

Hyperlocal outrage at the violence in Washington

I thought it was interesting that the folks at The Bedford Citizen, a hyperlocal community news site that I track, decided to editorialize about the violent pro-Trump insurrection in Washington. The editorial reads in full:

A Message of Deep Concern from The Bedford Citizen

Although The Bedford Citizen does not ordinarily comment on events happening outside of Bedford, we, the Editorial Committee, feel compelled to express our shock and dismay at the threat to our democracy witnessed at the US Capitol yesterday.

Whatever your political views, and we respect and acknowledge a range of opinions among our readers, we hope you will join with us in condemning the mob violence that threatens our democratic institutions. How can we teach our children to uphold the rule of law when the very heart of our government was held hostage yesterday?

The Citizen is a nonprofit, mostly volunteer project founded in 2012.

Also, Grafton Common reports that the town’s select board issued a statement denouncing the violence in Washington. The statement begins:

The Select Board denounces in the strongest possible terms the violence and destruction that took place at the Capitol Building in Washington, D.C. today.

A house divided against itself cannot stand. If voting is the lifeblood of democracy then the peaceful transition of power is the beating heart of the republic. Without it, the principles upon which this nation are founded are destroyed.

Local journalism and community life can be powerful forces in overcoming the polarization that has brought the country to such a low point. There are times, though, when it’s impossible not to speak out about national events.

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Can the union representing Tribune’s workers stop Alden Global Capital?

The union at most of Tribune Publishing’s newspapers are making a bold move to stop Alden Global Capital from destroying local journalism in their communities.

Lukas I. Alpert reports in The Wall Street Journal that the News Guild, which represents workers at seven of Tribune’s nine daily newspapers, is demanding that three of the members of Tribune’s seven-person board of directors step down for violating Securities and Exchange Commission rules. The three members were appointed by Alden, a New York-based hedge fund.

One of the three is none other than Randall Smith, the subject of a brutal takedown in The Nation several years ago for pillaging his newspapers and using the money to buy 16 homes in Palm Beach, Florida, for $57 million. (OK, you can’t prove that there was a direct transfer of funds. But money, as they say, is fungible.)

Alden denies any wrongdoing in the would-be Tribune deal, in which it would acquire a majority share of some of our most important newspapers, including the Chicago Tribune, The Baltimore Sun and the Hartford Courant, for an offer valued at $521 million.

Earlier:

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Ben Franklin would be horrified at what the Postal Service is doing to newspapers

Benjamin Franklin, publisher and postmaster general

As if local newspapers didn’t have enough to contend with, they are now being threatened by the Postal Service. According to Jacob Bogage of The Washington Post, newspapers are simply not being delivered in some parts of the country because of the recent mail meltdown. And publishers are facing a rate increase of as much as 9% in 2022, cutting deeply into their already precarious bottom lines.

“These are little, tiny rural communities, and typically papers like mine are the only sources of information about that community,” Brett Wesner, chair of the National Newspaper Association and publisher of 12 papers in Texas, Oklahoma and New Mexico, told Bogage. “Most don’t have digital coverage of any kind. Most don’t have radio stations. We are the source of community information, both in terms of covering community events but also the city council, the school board, the county commission.”

It’s not an exaggeration to say that American newspapers were built on reliable postal service and affordable rates. As the Post notes, the first postmaster general was Benjamin Franklin, who was himself a newspaper publisher. Paul Starr, in his sweeping history of journalism, “The Creation of the Media” (2004), wrote that newspapers were given a boost starting in Colonial times through postal subsidies. By contrast, European governments, more wary of the press, kept postal rates artificially high.

In his book “Democracy without Journalism?” (2019), Victor Pickard put it this way:

Because the postal system served a higher civic purpose as a news and information infrastructure upon which a self-governing populace depended, policymakers determined that the state would directly subsidize the dissemination of newspapers with low postal rates.

That policy, Pickard wrote, was supported by founders such as George Washington and James Madison and prevailed until the “market fundamentalists” of the Reagan era began to argue that the Postal Service should be run like a business and turn a profit. And, of course, that move was hypercharged under President Donald Trump, who appointed an unqualified (at best) postmaster general, Louis DeJoy, who undermined postal operations in what may have been an attempt to suppress mail-in voting and help Trump win re-election.

So why not shift to digital delivery? That option is available to larger daily papers, especially as the steep decline of advertising takes away one of the last remaining reasons for having a print edition. The Salt Lake Tribune, our only nonprofit major metro, is moving from daily to weekly print in order to save money.

But the tiny newspapers, mostly weeklies, to which Brett Wesner refers most likely don’t have that option. Their communities may not have broadband, and the papers themselves may not even have websites. Print is vital for them to be able to serve the public. Unfortunately, it looks like one of Trump’s final legacies will be to make it that much harder for them to survive.

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In year-end message, Linda Henry announces that the Globe is expanding

The Boston Globe is expanding, according to chief executive officer Linda Pizzuti Henry.

The news comes in the form of a full-page ad in Sunday’s print edition — an odd choice, given that the Globe has about 220,000 digital-only subscribers and, according to the Alliance for Audited Media, has a Sunday print circulation of about 140,000. But maybe a lot of those digital subscribers use the e-paper and saw it anyway. (Update: I’m told Henry’s message was emailed to digital subscribers last week. I can’t imagine why I didn’t see it, but there you go.)

Henry begins by thanking readers following a difficult year of pandemic, economic collapse and “an overdue reckoning around race, equity and social justice.” And, of course, she praises the Globe as a “local, independent news organization,” citing highlights such as the paper’s COVID coverage, Mark Shanahan’s article and podcast about recovering from prostate cancer and “A Beautiful Resistance,” a celebration of Black life in New England by culture columnist Jeneé Osterheldt.

Now about the expansion:

  • Reporters and editors will be added to beef up the paper’s innovation, political and investigative beats.
  • A new Health and Science section will be launched, featuring coverage from Stat News and the Globe’s staff. (Perhaps something to keep an eye on: Stat News is non-union, whereas the Globe’s union and management have been at loggerheads over a new contract for several years.)
  • The Rhode Island bureau is being expanded, an initiative that had been announced previously.

Particularly welcome is the news that the Globe will be “improving our mobile app experience.” I hope those improvements extend to tablets as well as phones.

We all have our quibbles with the Globe, but the past few years have been extraordinary in putting the paper on a sustainable financial footing.

Publisher John Henry announced in late 2018 that the Globe had become profitable after years of losses and cost-cutting. The paper passed the 200,000 digital-subscription mark in early 2020, a long-sought measure of viability. And when Linda Henry was made CEO of Boston Globe Media Partners in November, the company said it currently employs more than 300 full-time journalists across its three platforms — the Globe, Stat News and Boston.com.

That is an impressive number at a time when The Denver Post’s newsroom, to cite just one example, has been slashed to about 60 by its hedge-fund owner, Alden Global Capital.

The full-page ad appears below.

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