I’m of two minds about Substack. As a newsletter-and-blogging platform that is attractive and simplifies the task of writers charging readers for their work, it’s fine. As a venture capital-backed company whose leaders seem to have visions of world domination (and endless riches), well, I’m more than a little skeptical.
Which is to say that I’m dubious about Substack Local, a just-announced initiative under which 30 lucky local journalists will be able to get start-up funding and health insurance in order to cover their communities. Obviously the idea addresses the two biggest obstacles to going independent. And if it works, presumably there will be many more such Substack-backed local projects to come.
But is this really going to work? What happens when — as seems inevitable — the venture capitalists see no path to profitability and decide to cash out? I realize there may not be too many similarities, but this feels like Medium, with its ever-shifting business model, which has left many publishers holding the proverbial bag.
If I were starting such a site, I’d be much more interested in the Tiny News Collective, which is providing local news entrepreneurs with support for back-end services such as technology, business training and legal services for around $100 a month.
No, it’s not as lucrative as getting VC money via Substack. But as Sarah Scire points out at the Nieman Journalism Lab, the money isn’t all that much and is aimed at moving the sites toward sustainability — a goal that can be pursued without Substack’s help.
We seem to be moving toward peak Substack. My only advice to local news folks thinking about applying is that they should have a clear, detailed plan in place for how to move rapidly to a different platform if they wind up getting Medium’d.
Charlotte, Vermont. Photo (cc) 2014 by Rene Rivers.
Charlotte, Vermont, is an affluent community of 3,700 people about 13 miles south of Burlington that will soon be covered by three local news organizations.
Yes, you read that correctly. Last month, VTDigger reported on turmoil at the town’s nonprofit newspaper, The Charlotte News. The editor, Chea Waters Evans, resigned because of what she regarded as unethical interference by the publisher and the board.
Now Evans will serve as the editor of a startup nonprofit news project, The Vermont Bridge, whose journalism will be distributed via a free Substack newsletter. Evans tells VTDigger’s James Finn, though, that her intent is not to compete with her former employer:
Our main goal is transparency. And not in a way where we want to compete with The Charlotte News. Their focus is having community contributors, while I just want to focus on hard news. They can continue doing what they’ve done well for decades.
Among the Bridge’s board members are VTDigger founder and editor-in-chief Anne Galloway and several high-profile journalists who had quit the News’ board in support of Evans.
And about that third news source? There’s also The Citizen, a for-profit newspaper that’s part of a Vermont-based chain and that covers Charlotte and neighboring Hinesburg.
It is fair to say that Charlotte is not a news desert.
The information gap here in Medford is not much different when compared to the situation in hundreds, if not thousands, of communities across the country. Despite having a population of nearly 60,000 and five reasonably healthy business districts, our Gannett weekly has not had a single full-time staff reporter since the fall of 2019.
So we do what people do everywhere — we rely on a few Facebook groups, Nextdoor and Patch. Of course, there is no substitute for a news source that does the unglamorous work of sitting through governmental meetings (which the weekly does on a piecemeal basis), following neighborhood issues, and keeping tabs on the local police. A lot of times we simply ask questions. Why was a helicopter hovering over the Mystic Lakes? When will everyone be allowed back in the school buildings?
Earlier this week, Brandy Zadrozny wrote a lengthy feature for NBC News about what’s happened in Beaver County, Pennsylvania, where Gannett and its predecessor company, GateHouse Media, have decimated the The Times of Beaver County since acquiring it from local ownership in 2017.
In particular, residents have turned to a Facebook group called The News Alerts of Beaver County, an occasionally useful forum with 43,000 members that all too often devolves into a cesspool of false rumors about murders, human trafficking and child molesters. Zadrozny writes:
The News Alerts of Beaver County isn’t home base for a gun-wielding militia, and it isn’t a QAnon fever swamp. In fact, the group’s focus on timely and relevant information for a small real-world community is probably the kind that Chief Executive Mark Zuckerberg envisioned when he pivoted his company toward communities in 2017.
And yet, the kind of misinformation that’s traded in The News Alerts of Beaver County and thousands of other groups just like it poses a unique danger. It’s subtler and in some ways more insidious, because it’s more likely to be trusted. The misinformation — shared in good faith by neighbors, sandwiched between legitimate local happenings and overseen by a community member with no training but good intentions — is still capable of tearing a community apart.
Zadrozny also quotes Jennifer Grygiel, a communications professor at Syracuse University, who tells her: “In a system with inadequate legitimate local news, they may only be able to get information by posting gossip and having the police correct it. One could argue this is what society will look like if we keep going down this road with less journalism and more police and government social media.”
The area does have an independent website, BeaverCountian.com, which took note of the NBC News story and has won a number of awards for its journalism. But it only posts once every couple of days or so, which isn’t enough for county with nearly 164,000 people. Something more comprehensive is needed.
What’s at stake is our civic live and our ability to function in a democracy. This is why the fight to save local news is so important.
Washington Post reporters Elahe Izadi and Sarah Ellison have a terrific account of how the campaign to save Tribune Publishing from Alden Global Capital got started.
It began with Save Our Sun, a group launched by several Baltimore Sun reporters. And as recently as a few weeks ago, it looked like they had won a significant but limited victory: Alden would take ownership of eight of Tribune’s nine major-market dailies, spinning the Sun and several affiliated papers off to nonprofit ownership.
That’s when things got more interesting. When Stewart Bainum, the hotel magnate behind the nonprofit plan, grew frustrated with Alden’s terms, he put together a group of billionaires and outbid Alden for the entire chain. Though Bainum’s victory is not yet assured, things are moving in the right direction. The papers would be spun off to local owners, some of them nonprofits, which would represent the biggest victory over chain journalism in many years.
Among the papers that would be saved from Alden’s clutches: the Chicago Tribune, New York’s Daily News and the Hartford Courant.
Meanwhile, Joshua Benton of the Nieman Journalism Lab explains how Alden can win even if it loses: the hedge fund already owns 32% of Tribune. So if the Bainum group ends up paying a premium, Alden will be among the beneficiaries.
Bad news about the media business is nothing new. From the moment that the commercial web slipped into view in the mid-1990s, news organizations have been on the losing end of a long war over how — and even whether — journalism should be paid for.
Some recent developments, though, offer reasons for hope amid the gloom. Consider:
• BuzzFeed recently acquired HuffPost and immediately took an axe to it, laying off 47 employees, with the threat of more cuts to come. I will concede there’s nothing positive about that. But the debacle points to the limits of media funded by venture capital and could encourage more sustainable models.
• The notorious hedge fund Alden Global Capital was on the verge of acquiring Tribune Publishing, whose nine large-market daily papers include the Chicago Tribune, New York’s Daily News and, locally, the Hartford Courant. But a group of billionaire investors led by Baltimore hotel magnate Stewart Bainum stepped forward to propose breaking up the chain and operating the papers locally, some of them on a nonprofit basis. And, at least at the moment, it looks like they might win.
• As media observers had long feared, the departure of former President Donald Trump from the White House led to an immediate decline in news consumption — not just at the cable news networks, but at national and regional newspapers too. Yet the post-Trump slump represents a chance to emphasize local news, which has more of an effect on readers’ actual lives and helps build community.
What a lot of this comes down to is the end of the idea that scale will save the digital news business. “Local doesn’t scale” has long been the motto of community-based entrepreneurs. But now it’s looking like scale doesn’t work at the national level, either, with a few notable exceptions like The New York Times and The Washington Post.
Josh Marshall, founder of a small but successful political website called Talking Points Memo that depends mainly on reader revenue, described the dilemma in a recent essay for The Atlantic. For years, he wrote, venture capitalists kept pouring more and more money into digital news outlets hoping that they would someday become large enough to dominate their rivals, rake in a bounty of ad revenues and give the investors a chance to cash in.
Instead, the digital ad money went to Google and Facebook, leaving these outlets without any way forward.
“The whole digital news industry has been based on lies,” Marshall wrote, adding: “Investors realized that the tantalizing prospect of ad revenue lock-in that had always appeared just over the horizon was an illusion, so they shut off the investment spigot … In digital publishing, scale was the god that failed.”
If bigger isn’t necessarily better, that points to an opportunity for local news, whose tribulations have been the subject of considerable discussion over the past several years. Last November, I wrote that reviving community journalism could help overcome the angry polarization of the Trump era. Now three scholars have conducted a study showing there may be something to it.
According to an overview by Joshua Benton of the Nieman Journalism Lab, the researchers — Joshua Darr of Louisiana State University, Matthew Whitt of Colorado State University and Johanna Dunaway of Texas A&M — conducted a survey of readers after The Desert Sun of Palm Springs, California, decided to drop from its opinion pages all syndicated columns and references to national politics for one month.
Darr, Whitt and Dunaway compared The Desert Sun’s readers to those of a control paper and found that polarization was less than what might otherwise have been expected. The numbers were small and didn’t really prove anything one way or the other. But, as the three wrote, the effect was notably salutary regardless of the actual numbers, since the experiment pushed the paper to pay more attention to what was taking place in its own backyard.
“Local newspapers are uniquely positioned to unite communities around shared local identities, cultivated and emphasized through a distinctive home style, and provide a civil and regulated forum for debating solutions to local problems,” they wrote. “In Palm Springs, those local issues were architectural restoration, traffic patterns and environmental conservation. The issues will differ across communities, but a localized opinion page is more beneficial for newspapers and citizens than letters and op-eds speckled with national political vitriol.”
It’s worth noting, too, that The Desert Sun — a Gannett paper — is small enough to be regarded as a truly local paper. According to the Alliance for Audited Media, the Sun’s combined digital and print weekday paid circulation is 15,862, and 16,993 on Sundays. But will the experiment have a lasting impact?
According to Julie Makinen, the paper’s executive editor, the answer is yes. Although the ban on national politics lasted only lasted for a month, she wrote approvingly about the study last week and added that it “is useful to us in that it helps point the way for further improving our opinion pages as we bring on a new editor for the section.”
Which brings me back to where I started. If scale is “the god that failed,” as Josh Marshall puts it, and if local news and opinions are an answer to rebuilding both journalism and civic engagement, what should come next?
Damon Kiesow of the Missouri School of Journalism, whose professional stops include a stint on the digital side at The Boston Globe, recently tweeted out a link to a piece he wrote more than a year ago that seems even more relevant now than it did then.
Because most local newspapers are owned by national chains, he wrote, those papers often end up getting caught in a strategy of pursuing scale even though it makes no sense for them. Journalistically, it means loading up on syndicated content. On the business side, it means chasing advertising dollars — or pennies — that are going to go to Google and Facebook in any case.
“To succeed,” he wrote, “local media have to abandon scale and refocus on community. Advertising remains part of the equation. But reader revenue, donations, foundation funding — yard sales if necessary — are all in the mix.” He concluded that “the internet is infinite; your community is not. Go small, or we are all going home.”
For a generation now, much of the news media have been seeking magical one-size-fits-all solutions to the economic destruction created by technology and out-of-control capitalism. The problem is that there are no easy answers, and scaling up has only made things worse. Those who have succeeded have done so through the hard work of figuring out what their communities need — and then going about the business of serving those needs.
MediaNews Group, the newspaper chain owned by Alden Global Capital, has named a new senior editor at The Sun of Lowell and the Sentinel & Enterprise of Fitchburg: Bruce Castleberry, who will remain as regional sports editor for Massachusetts.
Castleberry replaces Tom Shattuck, who left late last month.
The group of billionaire investors headed by Baltimore hotel magnate Stewart Bainum has pulled out ahead of the hedge fund Alden Global Capital in the bidding for Tribune Publishing’s nine daily newspapers. The Bainum group would split the chain apart and run at least some of the papers as nonprofits. Cara Lombardo and Lukas I. Alpert report in The Wall Street Journal:
If Alden loses the deal, it would mark a stunning, 11th-hour turnaround for the New York hedge fund, and a major victory for critics who say its model of aggressive cost-cutting has hurt the local news industry. Alden had spent nearly a year-and-a-half positioning itself to take over Tribune, publisher of nine large-market daily newspapers including the Chicago Tribune, New York Daily News and the Baltimore Sun.
The Orlando Sentinel — one of nine Tribune Publishing newspapers that are either on the verge of being bought and destroyed by Alden Global Capital or rescued by a group of would-be billionaire saviors — has published a remarkable editorial about its fate.
“Alden’s history with newspaper ownership is akin to a biblical plague of locusts — it devours newsroom resources to maximize profits, leaving ruin in its wake,” the editorial says. Indeed, Alden, the hedge fund behind MediaNews Group, has destroyed papers from coast (the Orange County Register) to coast (the Boston Herald) and at various points in between (The Denver Post).
The Sentinel’s local and regional coverage would be valuable to its community in any case. But as the editorial notes, it’s the paper’s reporting on indicted former elected official Joel Greenberg that led the national press to U.S. Rep. Matt Goetz, a Florida Republican whose meltdown encompasses so much alleged wrongdoing that it can’t be easily summarized here.
As I wrote earlier this week, a group led by the hotel magnate Stewart Bainum, who hopes to take Tribune’s Baltimore Sun nonprofit, has offered Tribune’s board slightly more money than Alden ($650 million to $630 million). But the board has been leaning Alden’s way because the Bainum group hasn’t pulled its financing together yet. The Sentinel editorial puts it this way:
This is the kind of principled ownership the Sentinel and other Tribune papers like the Chicago Tribune and South Florida Sun Sentinel need to survive and thrive, investors who see not just an opportunity to make money (because many papers, ours included, still make money) but also a way to strengthen their communities.
With chains of varying levels of greed such as Gannett, Advance and McClatchy controlling almost everything else, the fight of Tribune really feels like it’s the last battle in a long war for the soul of American newspaper journalism.
If the Bainum group loses, the only thing left will be the hard work of building an alternative local news ecosystem.
As Love Live Local points out, the Cape’s legacy newspapers are now owned by Gannett, which, along with its predecessor company, GateHouse Media, has cut them repeatedly over the years. If residents really want to be informed about what’s going on in their communities, they need to seek out independent sources of news.
So what is Love Live Local? Here is what the About page says:
When Love Live Local started in 2013, how it would evolve was a bit of an unknown. The intention was to highlight positive stories, Cape Cod happenings and connect local businesses with customers and supporters. As the founders began to appreciate not only how important small business was to the region, but also how much they were struggling, the messaging evolved, and they began to advocate much more strongly on behalf of small, local businesses — the backbone of this community.
Locally owned media and other types of businesses are all part of the same ecosystem that makes for a vibrant community. It’s good to see that there’s an organization on the Cape dedicated to helping them thrive.
Less than a week ago, efforts to keep Tribune Publishing out of the clutches of the hedge fund Alden Global Capital appeared to be faltering.
The hotelier Stewart Bainum, who originally got involved so that he could acquire Tribune’s Baltimore Sun and its affiliated papers in order to turn them over to a nonprofit, was seeking to outbid Alden’s $630 million offer. But according to Rick Edmonds of Poynter, the Alden deal was a simple cash offer that could be consummated quickly, which meant that Bainum was likely to lose out.
On Saturday, though, Marc Tracy of The New York Times reported that a Swiss billionaire named Hansjörg Wyss had teamed up with Bainum, with each man pledging to put up $100 million apiece.
Then, on Monday, we learned from Lukas I. Alpert of The Wall Street Journal that yet another wealthy patron, the technology investor Mason Slaine, had also agreed to put up $100 million. Slaine, who already owns a small chunk of Tribune, wants to acquire Tribune’s two Florida papers, the Orlando Sentinel and the South Florida Sun Sentinel of Fort Lauderdale.
Also over the weekend, Gary Lutin, a Manhattan investment banker, revealed that he wants to buy The Morning Call of Allentown, Pennsylvania, telling the paper: “There are many encouraging examples of both large global news organizations as well as small community news organizations that survive and eventually prosper based on improving the quality of the news service.” Lutin’s interest is not dependent on the Bainum group’s success — he says he’ll attempt to cut a deal with whoever the eventual buyer turns out to be.
Meanwhile, Patrick Soon-Shiong, the possibly reluctant owner of the Los Angeles Times and The San Diego Union-Tribune, remains in a position to veto any deal with Alden, though Edmonds has speculated that Soon-Shiong would be happy to cash in.
“Hope is what Tribune staffers are feeling,” writes CNN media reporter Kerry Flynn, “as it looks more and more feasible that local ownership could be in their futures — instead of Alden.”
The Tribune saga has been years in the making as the chain — which currently consists of nine papers — has lurched from one ownership melodrama to another. There was the epic era of Sam Zell, the foul-mouthed Chicago real-estate magnate who hated newspapers, documented memorably by the late David Carr. There was the rudderless period when the company was known as tronc.
Now the struggle over Tribune may represent the last best chance to stop Alden from destroying what’s left of some of the most important papers in the country — among them the Chicago Tribune, New York’s Daily News and, closer to home, the Hartford Courant.
“Maybe I’m naive,” Wyss told the Times, “but the combination of giving enough money to a professional staff to do the right things and putting quite a bit of money into digital will eventually make it a very profitable newspaper.”
Wyss isn’t being naive at all. Not only have The New York Times and The Washington Post shown it can be done, but regional papers such as The Boston Globe, the Star Tribune of Minneapolis and The Seattle Times are all doing well under local ownership committed to the transition from print to digital and from a mostly advertising-based model to one mainly supported by reader revenue.
Journalism is too important to be left to the whims of unbridled capitalism. We shouldn’t be reduced to having to root for one group of rich guys over another. But that’s where we’re at. In that spirit, may Bainum, Wyss, Slaine and Lutin win.
