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Richard Tofel asks some questions about the New York local news subsidies

Rube Goldberg drawing via Wikipedia

Richard J. Tofel has been looking into the details of legislation that created a $90 million fund to ease the local news crisis in New York State, and he has some questions. The two most important: Are newspapers owned by publicly traded companies truly excluded, as initial reports would suggestion? And what, exactly, is a newspaper?

As I wrote the other day, the program would seem to exclude Gannett, a publicly traded corporation that owns 12 daily newspapers in New York, including the Democrat and Chronicle of Rochester and the Times Herald-Record of Middletown. But Tofel isn’t sure of that, observing that “a separate provision makes all of the newspapers eligible, despite being owned by public companies, because their print circulation has declined by more than 20% in the last five years — as has that of almost every print publication in the country.”

The other major issue is whether digital-only outlets would be eligible. Tofel writes that “whether digital news organizations will be included within what the law refers to as ‘newspapers’” is still up in the air, adding that if “the regulatory definition of ‘newspapers’ excludes digital entrants and isn’t targeted at local news jobs, the bill will have amounted to a belated incumbency protection act for a failing field.”

Among the 200 members of the Empire State Local News Coalition who pushed for this legislation is The Batavian, a digital-only for-profit in western New York. I’ve already heard from Howard Owens, the publisher, who’s worried that his outlet may not be eligible for any subsidies unless the language is clarified.

The fund would set aside $30 million a year for three years to provide assistance to local news organizations that hire and retain journalists — although that, too, is unclear; it’s possible the money would be used for business-side employees, Tofel says. It could serve as a model for other states, but first the details have got to be nailed down.

In an appearance on Editor & Publisher’s vodcast earlier this week, Zachary Richner, the founder of the Empire State coalition, said that the final language had yet to be fully worked out. That will be done not through legislation but administratively, via a governmental agency called Empire State Development.

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Startup news leaders tell journalism students how to get that first job

Maya McFadden of the New Haven Independent interviews Victor Joshua, founder of the youth basketball program Respect Hoops. Photo (cc) 2021 by Dan Kennedy.

I’ll be part of a panel tomorrow discussing job opportunities for new and recent journalism graduates. My role will be to talk about opportunities at the rising generation of local and regional news startups. I am not quite sure what to tell them, but more than anything I want them to know that they need to be resourceful.

About a dozen years ago, Thomas MacMillan told me how he got hired at the New Haven Independent, one of the original nonprofit digital-only local news sites. He was working at a non-journalism job and started doing some interning. He asked the editor, Paul Bass, how he could turn that into a staff job, and Bass’ unconventional answer was that MacMillan should write a grant to fund his position. MacMillan did it, got hired and, in my 2013 book, “The Wired City,” talked about the rewards.

“It’s really fun for me to feel like we’re on a rising star rather than a sinking ship,” MacMillan said. “There’s just something exciting about feeling like you’re working on the new paradigm, where you can experiment and try different things and people will occasionally take notice of what you’re doing.”

What I will tell students is that jobs at these startups are few and far between, but if you can land one, they come with great mentoring and, in some cases, surprisingly good pay. From my conversations with people, I’ve found that nonprofit boards and independent operators take their obligation to provide a living wage and benefits seriously. At the very least, journalists at these organizations are often making more than they would at a chain-owned newspaper.

Students can’t just expect jobs to open up, because that doesn’t happen all that often. Identify two, three or five that you’d like to work at. Get in touch and stay in touch. Cover some news for them — not for free, of course, but in most cases they’re not going to hire someone they don’t have a prior relationship with.

To prepare for the panel, I contacted an array of startup news folks to see what advice they would give to students. I present their lightly edited answers in full.

Pioneering digital publisher Howard Owens tells us about a new idea for raising revenues

Howard Owens. Photo by Don Walker and used by permission.

On the new “What Works” podcast, Ellen Clegg and I talk with Howard Owens, the publisher of The Batavian, a digital news organization in Genesee County, New York, way out near Buffalo. When I first met Howard, he was the director of digital publishing for GateHouse Media, which later morphed into Gannett. Howard launched The Batavian for GateHouse in 2008. In 2009, GateHouse eliminated Howard’s job, but they let him take The Batavian with him, and he’s been at it ever since.

The Batavian’s website is loaded with well over 100 ads, reflecting his belief that ads should be put right in front of the reader, not rotated in and out. He’s also got an innovative idea to raise money from his readers while keeping The Batavian free, which we ask him about during our conversation with him.

We’re also joined by Sebastian Grace, who just received his degree in journalism and political science from Northeastern. Everyone in journalism is freaking out about ChatGPT and other players in the new generation of artificial intelligence. Seb wrote a really smart piece, which is up on the What Works website, assuring us all that we shouldn’t worry — that AI is a tool that can allow journalists to work smarter.

Ellen has a Quick Take on Mississippi Today, which won a Pulitzer Prize for Local Reporting for stories that revealed how a former Mississippi governor used his office to steer millions of state welfare dollars to benefit family and friends. Including NFL quarterback Brett Favre! We interviewed Mary Margaret White, the CEO of Mississippi today, on the podcast in November 2022. And reporter Anna Wolfe has a great podcast about her prize-winning series.

I observe that journalism these days is often depicted as deep blue — something that liberals and progressives may pay attention to, but that conservatives and especially Trump supporters dismiss as fake news. But Steve Waldman, the head of the Rebuild Local News coalition, says it’s not that simple, and that the local news crisis is harming conservatives even more than it is liberals.

You can listen to our conversation here and subscribe through your favorite podcast app.

At The Batavian, an innovative paywall gives subscribers a four-hour head start

Photo (cc) 2009 by Dan Kennedy

Now, here’s an interesting idea. The Batavian, a for-profit digital news outlet located in Genesee County, in western New York, has begun charging readers who want to see stories as soon as they’re posted. Others have to wait four hours.

In a press release posted by the trade publication Editor & Publisher, Howard Owens, who has led The Batavian since its founding nearly 15 years ago, explained that the website has begun charging $8 a month, or $80 a year, for subscribers who don’t want to put up with the four-hour delay. He calls it an “Early Access Pass,” and he writes:

I’m not aware of any other news publication using a similar reader-revenue model. For 15 years, our news site has been supported by more than 150 locally owned businesses, and we had an obligation to our fellow small business owners to ensure The Batavian remains the first stop in our community for local news. A paywall like many newspaper sites erect would kill site traffic, but with this model, we anticipate our program will keep our market-dominating traffic numbers high.

In a post at The Batavian, Owens says that the Early Access Pass is off to a fast start. He quotes one couple who told him: “We believe that being connected to local news is important for a healthy community. Knowing what’s happening in our own backyards helps raise awareness of events that we can have an effect on. We appreciate having an unbiased news source, and that is still free for our neighbors who may frequently face difficult financial choices.”

The Batavian has been an innovative project since its founding, and I reported on it for my 2013 book “The Wired City.” Owens launched the site as a pilot project for GateHouse Media in 2008, when he was the chain’s head of digital publishing. After GateHouse eliminated his position the following year, he took The Batavian with him and has been at it ever since. (GateHouse, as you know, merged with Gannett in 2019 and took its name.)

You’ll be able to hear Owens talk about The Batavian on an upcoming episode of the “What Works” podcast.

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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The Batavian moves to bolster its ad-supported free site with a subscription-based app

The Batavian, a hyperlocal news project in western New York, has long been among the more successful independent for-profit ventures  in community journalism. Launched by GateHouse Media in 2008 and operated by former GateHouse executive Howard Owens after the company eliminated his job the following year, the free site is an intriguing jumble of news, press releases, photos, promotions and vast amounts of local advertising. (The Batavian is prominently featured in “The Wired City,” my 2013 book about new forms of online local and regional journalism.)

Now Owens is trying something new — an ad-free mobile app designed with the idea of signing up paid subscribers. In a recent interview with Tom Grubisich of StreetFight, Owens said it took him two years to hone the app. The challenge, he said, is that though The Batavian is profitable, it has stopped growing. His goal for the app is not only to come up with a new revenue stream but to expand into other communities. He told Grubisich:

I’m interested in building a more native experience, which means it’s built around the feed, allows for more personalization and makes engagement more seamless. I’ll either do that for The Batavian, or if I’m fortunate enough to acquire funding, we’ll look for ways to expand that model into other communities. I’m most interested in being able to help aspiring local publishers get into the game and providing them the resources to be successful but we’ll also look software as a service and whole ownership of local news businesses.

At a moment when big, sexy digital media projects such as BuzzFeed are facing possible financial troubles, it’s important to keep an eye on the go-it-slow approach taken by independent publishers like Owens.

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Hyperlocal news, civic engagement and spirituality

Banyan tree

Banyan tree

Is there a connection between hyperlocal journalism, civic engagement and spirituality? Not directly. But in “The Wired City” I argue that New Haven Independent editor Paul Bass’ emphasis on community and right actions are tied to his involvement in Judaism.

In Haverhill, Massachusetts, Banyan Project founder Tom Stites is working to launch Haverhill Matters, the first of what he hopes will be a network of cooperatively owned news sites, in line with the way Unitarian Universalist congregations govern themselves.

Stites, among other things, is the retired editor of the UU World, the denomination’s quarterly magazine. In the current issue, I write about my fellow UU Stites:

Although both Haverhill Matters and the Banyan Project are purely secular endeavors, Stites sees some parallels between his idea and Unitarian Universalism’s Fifth Principle: “The right of conscience and the use of the democratic process within our congregations and in society at large.” “If you think of news communities and religious communities — meaning congregations — as comparable, the authority of the congregation comes from its members,” says Stites. “It’s a democratic institution, things are decided by discussion and vote. With the co-op model it’s the closest in all possible ways to the congregational polity model. There really is a real congruence there.”

I also offer some thoughts about the New Haven Independent and community-building as well as The Batavian, whose publisher, Howard Owens, sees a strong, locally owned business community as a key to fostering civic engagement. I hope you’ll take a look.

Photo (cc) by McKay Savage and published under a Creative Commons license. Some rights reserved.

Return of hometown news: Indy, local and online

70-Cover-LARGE

This article appears in the Summer 2014 edition of Yes! magazine and is (cc) by Yes! Republished under a Creative Commons license. Some rights reserved.

On a cold night in January, eight people gathered in a harshly lit classroom at Northern Essex Community College in Haverhill, Mass. Over cookies and bottled water, they discussed their latest plans for a project that has been years in the making—a cooperatively owned online news operation to cover their working-class city of 60,000.

The site, set to launch by the end of 2014, will be known as Haverhill Matters. It is the fruition of an idea called the Banyan Project, developed by Tom Stites, a retired journalist whose career included stops at The New York Times and the Chicago Tribune. As with food co-ops, the site will be owned by the members, who will be able to join by contributing money or labor—perhaps by writing a neighborhood blog or covering governmental meetings. If it is successful, Stites hopes to roll out similar news co-ops around the country.

The goal is to serve “news deserts,” a term Stites adopted from “food deserts.” Although Haverhill is covered by a daily and a weekly newspaper, they do not compete: Both are owned by an out-of-state corporate chain that has cut its staff significantly in recent years. The papers no longer have an office in Haverhill. Stites believes that just as a lack of fresh, nutritious food can be harmful to personal health, so, too, can a lack of fresh, relevant news be harmful to civic health.

How would Haverhill Matters make a difference? Mike LaBonte, who co-chairs the planning committee, cites the voluminous coverage given to the 1971 opening of a farmers market by the independent daily that then covered the city. Forty years later, he says, an attempt to revitalize the market received minimal attention.

“There are some aspects of the news that are simply not covered,” LaBonte says. “What I’m hearing from an awful lot of new people is ‘How do I find out what is going on in Haverhill?’”

The Banyan Project may prove to be one way of revitalizing civic engagement through local journalism, but it is far from the only way. Across the country, as traditional news organizations have shrunk, independent online news organizations have sprung up, sparking renewed interest in community not just through news coverage, but also by creating a conversation around that coverage.

Ongoing dialogue with readers

One of the oldest of these online news communities is the New Haven Independent, founded in 2005 by Paul Bass, former star reporter and political columnist for the alternative New Haven Advocate (killed off by its corporate owners). The Independent is staffed by four full-time journalists and is supported through foundation grants, donations from wealthy individuals, sponsorships by large institutions such as colleges and hospitals, and reader contributions.

From the beginning, Bass has carved out a niche that is distinct from the local daily newspaper by fostering an ongoing conversation with his community. Examples range from the ambitious, such as citywide forums on education reform and local politics, to the accidental, such as a mayoral candidacy that played out in the Independent’s comments section in 2007. In that instance, a local real-estate agent announced he was running, only to face a barrage from other commenters after he expressed ignorance of the city’s African American neighborhoods. To his credit, he withdrew shortly thereafter, writing that he realized he had much to learn about his adopted city.

Bass takes comments seriously. Pseudonyms are allowed so as to protect police officers, teachers, parents, and other city stakeholders who would be uncomfortable speaking out under their real names. But every comment is screened by someone on the Independent’s staff before it is posted—or rejected. Bass had to tighten up the rules following an outburst of online sociopathy sparked by an unusually contentious mayoral campaign in 2011. Among other things, would-be commenters now have to register using their real names, though Bass still allows them to post under their pseudonyms. Overall, though, the comments are far more civil and substantive than is the case at most news sites.

Civic engagement at the Independent can also take the form of day-in, day-out news coverage of relatively small quality-of-life issues that larger media can’t be bothered with. For instance, in 2010 the Independent reported on two incidents in which city police confiscated cell phones from bystanders so they couldn’t take video of officers as they made arrests.

The Independent flogged the issue for months. The result: statements from the mayor and the police chief affirming the right of the public to take video of police actions; an internal investigation that found officers had mishandled the two incidents; a mandatory training session at the police academy; and a bill filed at the Connecticut Statehouse making it easier for camera-wielding civilians to sue in response to police harassment. Though the bill did not pass, overall it was an impressive display of how a small news organization rooted in the community could punch above its weight.

“I’ve learned that the public can steer the conversation and take the story to a better place than reporters or editors could ever take it alone,” says Bass.

Four hundred miles west of New Haven, in the small city of Batavia in western New York, Howard Owens is promoting a different kind of civic engagement. Since 2008, his community news site, The Batavian, has been covering Batavia and rural Genesee County—first as part of the GateHouse Media chain, and then independently after Owens’ executive position with the company was eliminated in early 2009. Like Bass, Owens takes online comments seriously; unlike Bass, he requires commenters to use their real names.

Owens has done his share of in-depth coverage at The Batavian, competing with—and sometimes beating—the local daily paper. What keeps his readers engaged, though, is his close attention to more mundane matters: fire alarms, accidents, new park benches being installed, and the like.

“If the siren goes off, people want to know what’s going on,” he explains. “I’ll put something up even if it’s a false alarm. We go out and cover a lot of things that the newspaper tends to overlook as not being important or not worth their time.”

Owens is especially passionate about The Batavian’s relationship with local businesses. As a for-profit, the site depends on advertising, and one of Owens’ beliefs is that “advertising is content.” The Batavian is filled with small ads—nearly 150 of them—from pizza shops, funeral homes, doctor offices, heating companies, tattoo parlors, car dealerships, dog groomers, and the like. Owens does it for the money, of course. But he also is a strong believer in the importance of locally owned enterprises in building a self-sufficient community. As a matter of principle, he refuses to accept ads from Walmart and other national chains.

“We saw declining news readership as both a symptom and potentially a cause of declining civic engagement, thinking that newspapers have sort of lost their focus on their local communities,” says Owens. “We wanted to return that focus by concentrating solely on one community.”

Ordinary Citizens Working with Journalists

The New Haven Independent and The Batavian are proving that both nonprofit and for-profit models can viably foster independent hyperlocal news sites. Both of them, though, depend on professional journalists. In Haverhill, Tom Stites and local activists are hoping to find out whether volunteers can produce worthwhile journalism if they’re provided with a sense of ownership and put to work alongside professionals. The Banyan model calls for two full-time paid employees, an editor and a general manager. The rest of the coverage will come from volunteers, including neighborhood residents and students. It’s a tall order, given how labor-intensive local journalism can be.

Before it can happen, though, the Haverhill Matters planning committee needs to find out if residents will support the project. Committee members figure they need $50,000 in donations from so-called founding members, as well as continuing support in the form of $36 annual fees from at least 1,200 members. At a time when most news sites are free, it’s an ambitious undertaking. The Haverhill Matters launch has been postponed on several occasions. At the January planning meeting, Tom Stites said 2014 has to be the year that it finally gets off the ground.

“We enter 2014 with some momentum. We’ve got to keep it. We’ve got to build it. We’ve been picking away at this thing for a couple of years,” Stites said. “If we don’t do it this year, chances are it won’t get done.”

For those who believe in the importance of local journalism and civic engagement, the experiment unfolding in Haverhill will be important to watch.

Howard Owens on the success of The Batavian

Corporate hyperlocal is fading, with Patch being the prime example. Independent hyperlocal is working. Howard Owens, one of my main subjects in “The Wired City,” discusses the success of The Batavian this week with NPR’s “On the Media.”

Here is a blog post I wrote in July about The Batavian’s growth.

New Haven Independent seeks to build community radio station

6011084575_3a9019d5ea_nThis article was previously published by the Nieman Journalism Lab.

The New Haven Independent, which launched eight years ago amid the first wave of online-only community news sites, may soon expand into radio.

The nonprofit Independent is one of three groups asking the FCC for a low-power FM (LPFM) license in New Haven, Conn. If successful, editor and founder Paul Bass says that “New Haven Independent Radio” could make its debut at 103.5 FM in about a year.

“It would be a fun thing if we get it. I’m told it’s very hard,” Bass says. “We’re by no means talking as if we’re going to get this license. We thought it would be worth a shot.” He envisions a mix of news from the Independent and La Voz Hispana de Connecticut, the Independent’s content partner (and landlord), as well as music, public affairs, and shows produced by local nonprofit organizations. The station would be on the air at least 16 hours a day.

The three New Haven applications are part of the FCC’s great LPFM land rush. Legislation signed by President Obama in 2011 eased restrictions on low-power stations, and the FCC is expected to approve about 1,000 applications sometime in 2014. More than 2,800 applications were received by the deadlinelast month, according to the website Radio World. (Thanks to Aaron Read of Rhode Island Public Radio for tipping me off about the Independent’s application.)

According to the Prometheus Radio Project, a longtime advocate of expanded community radio, “the over 800 low-power stations currently on the air are run by nonprofits, colleges, churches and emergency responders.” For years, the radio industry and (believe it or not) NPR fought the expansion of LPFM, arguing that new stations would interfere with established broadcast frequencies — a concern that advocates say is unwarranted.

Like all LPFM stations, New Haven Independent Radio’s broadcast footprint wouldn’t extend much beyond the city limits, although it would stream online as well — which could be significant, Bass says, given predictions that most cars will have streaming Internet radio within a few years.

Inspired by Haverhill

Bass says he got the idea from WHAV Radio in Haverhill, Mass., a nonprofit online community station (it also has a weak AM signal) whose volunteer general manager, Tim Coco, is seeking to expand with an LPFM license of his own. (I wrote about Coco’s radio ambitions last summer.) Coco, who runs an advertising agency and is a local politico of some note, is also among a group of residents working to launch a cooperatively owned community news site to be called Haverhill Matters, under the auspices of the Banyan Project.

“I’m happy I provided some inspiration,” Coco told me by email. “I believe the more local voices, the better for the community.”

Although Bass, if he is successful, may be the first hyperlocal news-site operator to start an independent radio station, the connection between the two media is a natural one. For instance, Howard Owens, publisher of The Batavian, a for-profit site that covers Genesee County in western New York, has partnered since 2009 with WBTA, an AM station with a strong community presence. An even more ambitious project is under way in the heart of the country, as the St. Louis Beacon news site is merging with St. Louis Public Radio.

Donna Halper, a longtime radio consultant and historian who is an associate professor of communication at Lesley University, says a multiplatform presence of the sort Bass envisions is crucial at a time when the audience has become fragmented.

“These days, it’s a multimedia world, and even a low-power FM station can get people talking” about your work, she says. “In this kind of environment, the more platforms you are on, the more you have top-of-the-mind awareness.”

On the other hand, industry observer Scott Fybush, who writes about radio for his own eponymous website, warns that Bass may not quite realize what he is getting into.

“Twenty-four hours a day of radio is an unforgiving taskmaster,” Fybush said in an email. “There are lots of applicants in this LPFM window who have what appear to be noble ideas, but keeping a station going with engaging programming day in and day out isn’t easy to do.”

Three-way contest

But that’s getting ahead of things, because first Bass has to win the three-way contest for the New Haven license. And that is by no means assured. (Bass’s application was filed by the Online Journalism Project, the nonprofit entity that acts as the Independent’s publisher of record.)

According to documents on file with the FCC, the other two applicants are a Spanish-language organization and a Christian broadcaster called Alma Radio. Even though LPFM is intended to encourage localism, Alma proposes to broadcast nationally syndicated religious programs, including “Focus on the Family,” hosted by the controversial evangelical leader James Dobson. Alma Radio’s oversight board, according to a “Purposes and Objectives” document it included with its application, is “composed of members who believe and have a personal relationship with Jesus Christ.”

Although Bass says his ideas for the station are still evolving, he included a detailed proposal with his FCC application, with such diverse offerings as a morning news program; a daily “La Voz Latino Community Hour”; a collaboration with The Inner-City News, a local African-American publication; community theater; and a two-hour evening program to be called “Joe Ugly Presents Local Hip Hop.” (Joe Ugly is the nom de rap of a New Haven music impresario who runs an Internet radio station called Ugly Radio.)

One of the New Haven Independent’s funders has already put up $3,000, which paid for legal and engineering services. If Bass wins the license, he estimates it would cost $30,000 to build the station and $60,000 to $70,000 to pay a full-time employee to run it — a substantial amount over the approximately $500,000 a year the Independent now receives in donations, foundation grants, and corporate sponsorships.

The opportunity is clear enough. Done right, it would enable Bass to bring New Haven Independent journalism, with its hyperlocal emphasis on neighborhoods, schools, and city politics, to a new audience — and to entice that audience, in turn, into sampling the Independent.

The danger, of course, is that the radio project would drain resources and attention away from the Independent itself, diluting its mission with a gamble on a new platform that may or may not succeed. Bass’s answer to that challenge is simple and direct: “We have to make sure it doesn’t.”

Photo (cc) by Michael Coughlan and published under a Creative Commons license. Some rights reserved.

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