A deal in Denver’s suburbs points the way toward a solution for local news

This is one of the most exciting developments I’ve seen in local news in a long time — certainly more exciting than the news that Substack and Facebook were going to toss some spare change in a tin cup in the hopes of enticing community journalists to set up shop on their platforms.

Earliest this week David Folkenflik of NPR reported that The Colorado Sun, a digital startup that arose from the ashes of The Denver Post, would acquire a chain of 24 small newspapers in the Denver suburbs in partnership with a new nonprofit organization called the National Trust for Local News. As Sun editor and co-founder Larry Ryckman told Folkenflik:

These are the folks who are covering school boards, city councils, county commissions that no one else is covering. They provide unique local coverage. And we’re doing this so that we can preserve those voices.

Denver is the best-known example of the damage inflicted on newspapers by the hedge fund Alden Global Capital. Three years ago, journalists at The Denver Post rebelled at Alden’s brutal budget cuts. But guess who won? That led Ryckman and others to leave and launch the Sun. Ryckman described what happened last fall at the Radically Rural conference sponsored by the Keene (N.H.) Sentinel, which I covered for the Nieman Journalism Lab:

We endured cut after cut after cut. I had to lay people off. We were under assault, really, from our own owners, and nothing that we did — not being faster, smarter, more digital — none of those things really matter when a hedge fund doesn’t really care about the community or the journalism that the newspaper it owns produces. It’s really about this quarter’s return.

At one time, Denver’s newspapers employed about 600 journalists, Ryckman said. But the Rocky Mountain News shut down in 2009, and, as of last fall, Ryckman estimated the head count at the Post as being somewhere around 60. The Sun employs 10 people. But as a public benefit corporation, it can reinvest whatever money it makes in improving its journalism.

Could such a model work elsewhere? I don’t see why not. Take Eastern Massachusetts, whose weekly and daily community newspapers are nearly all owned by Alden’s rival in cost-cutting, Gannett. Could some sort of nonprofit entity be formed that would attempt to buy back Gannett’s properties in the Boston area? Gannett does sell papers from time to time. Maybe it’s possible to make them an offer they wouldn’t refuse.

The situation is dire. And what’s taking place in Denver suggests a possible way forward.

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Facebook joins Substack in tossing some peanuts to local news projects

Photo (cc) 2021 by Erich Ferdinand

All of a sudden, platform companies are deciding that local is the place to be.

Two weeks ago, Substack announced Substack Local, a program to seed $1 million worth of local news projects. It was a bit like Dr. Doom announcing he’d destroy the earth unless he was paid $1 million — the Substack initiative would only be enough to get 30 local journalists up and running. But no doubt there will be more to come if the first round proves successful.

Then, earlier this week, Facebook said it would pay $5 million to fund a similar program, with an emphasis on “Black, Indigenous, Latinx, Asian or other audiences of color.” You are free to conclude that this gives Mark Zuckerberg something positive to talk about the next time he gets dragged before a congressional committee. But I’m sure he’d like it to succeed as well, since anything that keeps people glued to Facebook is good for his bottom line.

In both cases, these are drops in the bucket — especially for Facebook, whose revenues in 2020 approached $86 billion. But even though the platforms themselves are paying next to nothing, it should help us find out whether they can help local news entrepreneurs solve some of the problems in building successful projects.

Is government-funded local journalism an idea whose time has come?

U.S. Treasury. Photo (cc) 2007 by Adam Fagen.

The local news crisis has some people talking seriously about government funding for journalism. The idea isn’t entirely new. Nonprofit news organizations enjoy tax benefits, and public broadcasters receive some federal money. As I recently reported for GBH News, federal pandemic relief actually meant that 2020 was a better year than 2019 for some media outlets.

But what comes next? Local media are being squeezed on one side by technology and on the other by avaricious chain ownership. Ideally, you would want to find ways to help independent news organizations without rewarding the corporations and hedge funds that are cutting newsrooms without conscience. But it’s hard to imagine how you would draw distinctions between the two.

Moreover, direct government assistance raises serious questions about how journalism can play its traditional watchdog role if it’s receiving money from the watchdog. It strikes me that it would be a hard sell with taxpayers, too. Nevertheless, some smart people are thinking about how we can provide communities with the news and information they need in an era of market failure.

One idea was offered recently by Osita Nwanevu in The New Republic. Under the headline “The Next Infrastructure Bill Should Save Local Journalism,” Nwanevu writes:

Really, the administration’s push for a more capacious definition of infrastructure should encourage us to think even more creatively about what else should qualify for the next package as it takes shape. Can it seriously be argued, for instance, that access to the news isn’t an important feature of any well-functioning society? We all depend upon a steady stream of accurate information; obviously, we owe much of our awareness that America’s infrastructure is crumbling to the work of journalists who helped alert policymakers and the public to the problem in the first place.

Nwanevu notes that the $3 per capita we currently spend on public broadcasting is a pittance compared to the $90 that is the average in many other developed countries. He also writes favorably of ideas that Andrew Yang put forth during his presidential campaign for a fellowship program for journalists and a “Local Journalism Fund” to help news outlets transition to sustainability. But Nwanevu is also thinking bigger than that, calling for $30 billion to $40 billion over the next 10 years.

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I’m not sold, though, mainly because Nwanevu only half-defines the problem. He cites the challenges posed by technology and the rise of Google and Facebook, but he makes no mention of corporate ownership, which has made the crisis much worse than it needed to be. With chains like Gannett and hedge funds like Alden Global Capital bleeding their newspapers dry, there is no money left over to invest in the future. Meanwhile, a number of independent news organizations across the country, for-profit and nonprofit, are doing a good job of serving their communities. We need more.

The Columbia Journalism Review recently published a conversation with the longtime media reformer Robert McChesney; Steve Waldman, the co-founder of Report for America; and the economist Andrea Prat. All of them offer their own ideas for providing some public assistance for news, with McChesney’s proposal for a “Green New Deal for journalism” being the most ambitious. He describes the challenge this way:

This is the public policy imperative facing the United States regarding journalism in 2021: we need the funding to support independent, competitive, professional local news media. That money must come from the government, but we cannot allow the government to pick and choose who gets the money. The policy must be like the postal subsidy of newspapers: large enough to get the job done, and it cannot discriminate on the basis of ideology or political viewpoint. Censorship is entirely unacceptable. It must allow the people to make of it what they will, and trust them in the process of self-government.

So how would McChesney accomplish that? Through elections at the county level (that wouldn’t really work in Massachusetts, which is pretty much county-free) to elect boards that would distribute between $32 billion and $35 billion a year over a five-year period to fund local news and foster the development of new nonprofit organizations. It’s pretty breath-taking, and McChesney admits there’s no support for such a plan in Washington at the moment. But the value McChesney has always brought to the table is that he thinks big and gives us a chance to wrap our minds around larger possibilities.

Waldman’s plan, by contrast, already has a great deal of support on Capitol Hill: a $250 refundable tax credit to pay for local news subscriptions or to donate to nonprofit media outlets. He would like to see a tax credit for hiring and retaining journalists as well, which is something currently being done in Canada.

Prat, though, argues that the tax credits would mainly benefit large news organizations, whereas “the most urgent problem is not the overall information level but its distribution across the population.” A voucher system, he says, “would give more access to information-poor people.”

So, has the moment come for government-funded news? My own guess is probably not, at least if we’re talking about the ambitious proposals put forth by Nwanevu and McChesney. But some modest assistance aimed at helping news organizations make the transition to a sustainable future might well be a good idea.

Waldman’s tax credits and Prat’s vouchers could be seen as extensions of the help we already provide through nonprofit tax incentives. And surely we can provide more funding for public media while broadening the definition to include community-based journalism.

Everything needs to be on the table.

In a Pennsylvania county, fear and rumor-mongering replace reliable local news

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.

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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.

Facebook could have made itself less toxic. It chose profit and Trump instead.

Locked down following the Jan. 6 insurrection. Photo (cc) 2021 by Geoff Livingston.

Previously published at GBH News.

Working for Facebook can be pretty lucrative. According to PayScale, the average salary of a Facebook employee is $123,000, with senior software engineers earning more than $200,000. Even better, the job is pandemic-proof. Traffic soared during the early months of COVID (though advertising was down), and the service attracted nearly 2.8 billion active monthly users worldwide during the fourth quarter of 2020.

So employees are understandably reluctant to demand change from their maximum leader, the now-36-year-old Mark Zuckerberg, the man-child who has led them to their promised land.

For instance, last fall Facebook tweaked its algorithm so that users were more likely to see reliable news rather than hyperpartisan propaganda in advance of the election — a very small step in the right direction. Afterwards, some employees thought Facebook ought to do the civic-minded thing and make the change permanent. Management’s answer: Well, no, the change cost us money, so it’s time to resume business as usual. And thus it was.

Joaquin Quiñonero Candela is what you might call an extreme example of this go-along mentality. Quiñonero is the principal subject of a remarkable 6,700-word story in the current issue of Technology Review, published by MIT. As depicted by reporter Karen Hao, Quiñonero is extreme not in the sense that he’s a true believer or a bad actor or anything like that. Quite the contrary; he seems like a pretty nice guy, and the story is festooned with pictures of him outside his home in the San Francisco area, where he lives with his wife and three children, engaged in homey activities like feeding his chickens and, well, checking his phone. (It’s Zuck!)

What’s extreme, rather, is the amount of damage Quiñonero can do. He is the director of artificial intelligence for Facebook, a leading AI scientist who is universally respected for his brilliance, and the keeper of Facebook’s algorithm. He is also the head of an internal initiative called Responsible AI.

Now, you might think that the job of Responsible AI would be to find ways to make Facebook’s algorithm less harmful without chipping away too much at Zuckerberg’s net worth, estimated recently at $97 billion. But no. The way Hao tells it, Quiñonero’s shop was diverted almost from the beginning from its mission of tamping down extremist and false information so that it could take on a more politically important task: making sure that right-wing content kept popping up in users’ news feeds in order to placate Donald Trump, who falsely claimed that Facebook was biased against conservatives.

How pernicious was this? According to Hao, Facebook developed a model called the “Fairness Flow,” among whose principles was that liberal and conservative content should not be treated equally if liberal content was more factual and conservative content promoted falsehoods — which is in fact the case much of the time. But Facebook executives were having none of it, deciding for purely political reasons that the algorithm should result in equal outcomes for liberal and conservative content regardless of truthfulness. Hao writes:

“They took ‘fairness’ to mean that these models should not affect conservatives more than liberals. When a model did so, they would stop its deployment and demand a change. Once, they blocked a medical-misinformation detector that had noticeably reduced the reach of anti-vaccine campaigns, the former researcher told me. They told the researchers that the model could not be deployed until the team fixed this discrepancy. But that effectively made the model meaningless. ‘There’s no point, then,’ the researcher says. A model modified in that way ‘would have literally no impact on the actual problem’ of misinformation.”

Hao ranges across the hellscape of Facebook’s wreckage, from the Cambridge Analytica scandal to amplifying a genocidal campaign against Muslims in Myanmar to boosting content that could worsen depression and thus lead to suicide. What she shows over and over again is not that Facebook is oblivious to these problems; in fact, it recently banned a number of QAnon, anti-vaccine and Holocaust-denial groups. But, in every case, it is slow to act, placing growth, engagement and, thus, revenue ahead of social responsibility.

It is fair to ask what Facebook’s role is in our current civic crisis, with a sizable minority of the public in thrall to Trump, disdaining vaccines and obsessing over trivia like Dr. Seuss and so-called cancel culture. Isn’t Fox News more to blame than Facebook? Aren’t the falsehoods spouted every night by Tucker Carlson, Sean Hannity and Laura Ingraham ultimately more dangerous than a social network that merely reflects what we’re already interested in?

The obvious answer, I think, is that there’s a synergistic effect between the two. The propaganda comes from Fox and its ilk and moves to Facebook, where it gets distributed and amplified. That, in turn, creates more demand for outrageous content from Fox and, occasionally, fuels the growth of even more extreme outlets like Newsmax and OAN. Dangerous as the Fox effect may be, Facebook makes it worse.

Hao’s final interview with Quiñonero came after the deadly insurrection of Jan. 6. I’m not going to spoil it for you, because it’s a really fine piece of writing, and quoting a few bits wouldn’t do it justice. But Quiñonero comes across as someone who knows, deep in his heart, that he could have played a role in preventing what happened but chose not to act.

It’s devastating — and something for him to think about as he ponders life in his nice home, with his family and his chickens, which are now coming home to roost.

There’s no reason to think that a Nextdoor-like service would have saved local news

Every so often, media observers berate the newspaper business for letting upstarts encroach on their turf rather than innovating themselves.

Weirdly enough, I’ve heard a number of people over the years assert that newspapers should have unveiled a free classified-ad service in order to forestall the rise of Craigslist — as if giving away classified ads was going to help pay for journalism. As of 2019, Craigslist employed a reported 50 full-time people worldwide. The Boston Globe and its related media properties, Stat News and Boston.com employ about 300 full-time journalists. As they say, do the math.

Sometimes you hear the same thing about Facebook, which is different enough from journalism that you might as well say that newspapers should have moved into the food-services industry. Don Graham’s legendary decision to let Mark Zuckerberg walk away from an agreed-upon investment in Facebook changed the course of newspaper history — the Graham family could have kept The Washington Post rather than having to sell to Jeff Bezos. As a bonus, someone with a conscience would have sat on Facebook’s board, although it’s hard to know whether that would have mattered. But journalism and social media are fundamentally different businesses, so it’s not as though there was any sort of natural fit.

More recently, I’ve heard the same thing about Nextdoor, a community-oriented social network that has emerged as the news source of record for reporting lost cats and suspicious-looking people in your neighborhood. I like our Nextdoor and visit it regularly. But when it comes to discussion of local news, I find it less useful than a few of our Facebook groups. Still, you hear critics complain that newspapers should have been there first.

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Well, maybe they should have. But how good a business is it, really? Like Craigslist, social media thrives by having as few employees as possible. Journalism is labor-intensive. Over the years I’ve watched the original vision for Wicked Local — unveiled, if I’m remembering correctly, by the Old Colony Memorial in Plymouth — shrink from a genuinely interesting collection of local blogs and other community content into a collection of crappy websites for GateHouse Media’s and now Gannett’s newspapers.

The original Boston.com was a vibrant experiment as well, with community blogs and all sorts of interesting content that you wouldn’t find in the Globe. But after the Globe moved to its own paywalled website, Boston.com’s appeal was pretty much shot, although it continues to limp along. For someone who wants a free regional news source, it’s actually not that bad. But the message, as with Wicked Local, is that maybe community content just doesn’t produce enough revenue to support the journalists we need to produce actual news coverage.

Recently Will Oremus of a Medium-backed website called OneZero wrote a lengthy piece about the rise of Nextdoor, which has done especially well in the pandemic. Oremus’ take was admirably balanced — though Nextdoor can be a valuable resource, especially in communities lacking real news coverage, he wrote, it is also opaque in its operations and tilted toward the interests of its presumably affluent users. According to Oremus, Nextdoor sites are available in about 268,000 neighborhoods across the world, and its owners have considered taking the company public.

There’s no question that Nextdoor is taking on the role once played by local newspapers. But is that because people are moving to Nextdoor or because local newspapers are withering away? As Oremus writes, quoting Emily Bell:

In some ways, Nextdoor is filling a gap left by a dearth of local news outlets. “In discussions of how people are finding out about local news, Nextdoor and Facebook Groups are the two online platforms that crop up most in our research,” said Columbia’s Emily Bell. Bell is helping to lead a project examining the crisis in local news and the landscape that’s emerging in its wake.

“When we were scoping out, ‘What does a news desert look like?’ it was clear that there’s often a whole group of hyperlocal platforms that we don’t traditionally consider to be news,” Bell said. They included Nextdoor, Facebook Groups, local Reddit subs, and crime-focused apps such as Citizen and Amazon Ring’s Neighbors. In the absence of a traditional news outlet, “people do share news, they do comment on news,” she said. “But they’re doing it on a platform like Nextdoor that really is not designed for news — may be in the same way that Facebook is not designed for news.”

Look, I’m glad that Nextdoor is around. I’m glad that Patch is around, and in fact our local Patch occasionally publishes some original reporting. But there is no substitute for actual journalism — the hard work of sitting through local meetings, keeping an eye on the police and telling the story of the community. As inadequate as our local Gannett weekly is, there’s more local news in it than in any other source we have.

If local newspapers had developed Nextdoor and offered it as part of their journalism, would it have made a different to the bottom line? It seems unlikely — although it no doubt would have brought in somewhat more revenues than giving away free classifieds.

Nextdoor, like Facebook, makes money by offering low-cost ads and employing as few people as possible. It may add up to a lot of cash in the aggregate. At the local level, though, I suspect it adds up to very little — and, if pursued by newspapers, would distract from the hard work of coming up with genuinely sustainable business models.

The New York Times has a David Brooks problem

David Brooks. Photo (cc) 2011 by the Miller Center.

The New York Times’ David Brooks problem has ratcheted up from “uh, oh” to “holy cow.”

Craig Silverman and Ryan Mac of BuzzFeed News reported on Wednesday that Brooks, a prominent Times columnist, is getting paid for his work at Weave, a civic-engagement project that’s part of the Aspen Institute. Among Weave’s funders is Facebook.

A week earlier, BuzzFeed reported that Brooks had written a post on Facebook’s blog singing the praises of Facebook Groups without letting his editors at the Times know about it. That was bad enough. But now that there’s money involved, the Times is going to have to take action.

It’s unclear whether the Times knows he’s been getting a second salary. If they do, then perhaps Brooks can avoid being disciplined. But whether they know or not, what about the rest of us? Every time Brooks writes about an organization in which he has a financial stake, that needs to be appended to the bottom of his column. Needless to say, the problem with that is it would look ridiculous. I’m sure the Times doesn’t want to run a piece by one of its own staff columnists that reveals he’s in the tank to someone else.

As someone who has worked in opinion journalism for many years, and who teaches it, I feel like I have a stake in calling out Brooks’ misbehavior. I stress to my students repeatedly that we have the same ethical obligations as straight-news reporters. We don’t make political contributions. We don’t put signs on our lawns. And we maintain our independence.

One of the four tenets of the Society of Professional Journalists’ Code of Ethics is to “act independently.” The code explains further: “Avoid conflicts of interest, real or perceived. Disclose unavoidable conflicts.” Brooks’ conflict seems avoidable enough, but at the very least he should have disclosed it.

A summary of Bill Kovach and Tom Rosenstiel’s “The Elements of Journalism” has this to say about independence and opinion journalism:

Journalistic independence, write Kovach and Rosenstiel, is not neutrality. While editorialists and commentators are not neutral, the source of their credibility is still their accuracy, intellectual fairness and ability to inform — not their devotion to a certain group or outcome. In our independence, however, journalists must avoid straying into arrogance, elitism, isolation or nihilism.

I assume the Times is going to take this seriously. It may be bad for Brooks that the Times’ opinion editor, Kathleen Kingsbury, is just a few weeks into her job and may want to send a message to the rest of her staff.

But I’m troubled by a statement BuzzFeed got from Times spokeswoman Eileen Murphy. Silverman and Mac write: “Murphy said other Times columnists have roles outside the paper. When asked for an example, she cited Paul Krugman, who was a professor of economics at Princeton and is currently a distinguished professor at the Graduate Center of the City University of New York.”

Seriously? Krugman is not a columnist who scored an academic gig. He’s a professor who was so highly regarded that the Times hired him as a columnist. The Times is his second job (or was; he seems to be semi-retired now), just as the Aspen Institute is Brooks’ second. And everyone knows about Krugman’s academic background. It was hardly a secret when he won the Nobel Prize in Economics.

I hope this can be resolved. Brooks is reviled in many circles, but I value his work. He often shows himself to be out of touch, and he can drive me crazy sometimes. But at his best he’s very good, and I’d hate to see him go, or set up a Substack.

It will be interesting to see what happens when Brooks and Washington Post columnist Jonathan Capehart kick the week’s news around on the “PBS NewsHour” tomorrow evening. Brooks should address it.

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Rep. Cicilline to push bill allowing news publishers to negotiate with Big Tech

Could Australian-style rules to force Google and Facebook to pay for news be coming to the United States?

U.S. Rep. David Cicilline, D-R.I., told the CNN program “Reliable Sources” over the weekend that the House will soon take up legislation that would give news publishers an antitrust exemption allowing them to bargain collectively with the Big Tech platforms. The purpose would be negotiating a compensation system.

“Local news is on life support in this country,” said Cicilline, who chairs the House Judiciary Antitrust Subcommittee. “The monopoly power of these two platforms is resulting in a significant decline in local journalism.”

More broadly, he said his committee will also take up parts of a 450-page report, compiled over 16 months, to rein in the power of the giant platforms. He told host Brian Stelter that many of the recommendations in the report have bipartisan support and are aimed at breaking up the tech companies’ monopoly power.

The most intriguing of those ideas, according to a recent story by Cat Zakrzewski in The Washington Post, involves “interoperability and data portability, which would make it easier for consumers to move their data to new or competing tech services.”

Facebook has massive market dominance, and it would be difficult for a competitor to get a toehold in the market in any case. But it would be at least somewhat more feasible if users could easily transfer all their data over to a new service and delete it from Facebook, something that is almost impossible to do at the moment.

Regardless of what happens, it seems that Google and Facebook may soon no longer be able to operate with impunity. I’m far from certain that the Australian system is the best way to go given that it privileges entrenched publishers like Rupert Murdoch. But the idea that the platforms should pay something for what they use is long overdue.

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Facebook to fund revenue models for community news projects

When Facebook has announced various initiatives to help news organizations, they have tended to benefit larger newsrooms that are less in need of assistance. For instance, when the News Tab was unveiled a year and a half ago, it was explicitly designed to benefit behemoths like The New York Times, The Washington Post and BuzzFeed.

As I wrote then: “At a time when local news is under unprecedented economic pressure, the News Tab will only widen the gap between relatively well-off, highly visible national news organizations and small local projects. The national sites will get paid; the local sites will be billed monthly.”

On Wednesday, though, LION (Local Independent Online News) Publishers announced a $1 million, two-year initiative funded by the Facebook Journalism Project to help its members develop their revenue models. Anika Anand, deputy director of LION Publishers, writes:

Through an application process, we will select a group of LION member organizations that will receive up to two years of funding to hire someone who will focus primarily on revenue generation with the goal of making their position self-sustaining at the end of the two years. For our first cohort, we will prioritize news businesses pursuing sustainability through a revenue strategy focused on readers, major donors or advertisers. Every LION member will be considered eligible for this program — their tax status will not matter.

In other words, the program is open to for-profit and nonprofit ventures alike.

News organizations that are part of LION are sources of reliable journalism, and they’re providing it on the community level, where the news implosion has hit the hardest. With 262 members, $1 million isn’t going to go a long way. But we do seem to be at a moment at which Facebook and Google understand that they are going to have to pay for the news they’ve been using. The LION program is exceptionally worthy.

Let’s call this a good start.

Can Gannett and McClatchy’s joint venture reinvigorate national advertising?

At root, the debate over whether Google and Facebook should pay for news is about how their duopoly destroyed the value of digital advertising and then kept most of the revenues for themselves.

News, which is expensive, can’t survive on the pennies brought in by Google’s programmatic ads. That’s why there’s been so much emphasis in recent years on reader revenue — an emphasis that, at least in a few places, is starting to pay off.

Still, it would surely be a positive if news organizations could develop a revenue stream other than digital subscriptions. When readers are empowered, they expect their preferences and prejudices to be catered to. You need a balance. That’s why it’s interesting to see Axios’ recent report that Gannett and McClatchy will combine forces to sell national advertising for their hundreds of local and regional papers.

Can Gannett and McClatchy’s efforts drive up the price of digital ads? That’s the real issue, and without that their effort is not going to have much of an effect. Of course, it also does nothing to boost ad sales at the local level, which have been on the decline for years. Yes, local businesses have gravitated to Facebook just like everyone else. But local newspapers aren’t exactly known for being aggressive and creative about selling to the local hair salons, pizza restaurants and funeral homes, either. It can be done. Just ask Howard Owens, publisher of The Batavian in western New York state.

The partnership shows why I differentiate between Gannett and Alden Global Capital, even though their nuke-the-newsroom approach to the bottom line looks very much the same on the ground. Alden, by all appearances, is trying to squeeze as much money as it can out of the newspapers it’s killing and then get out. Gannett, on the other hand, is hoping to build a community news chain that can be sustainable in the long run.

Gannett’s biggest mistake, carried over from its predecessor company, GateHouse Media, is that its executives think they can build for the future while failing to provide enough journalism to retain readers. No matter how smart your business model, it’s not going to work if all you’re offering your audience is a shell.

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