Congratulations to Howard Owens, publisher of The Batavian, for his victory in an important public records case in New York State, culminating a two-year-plus fight.
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.
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.
When I began my research for “The Wired City” in 2009, I was optimistic that a new generation of online-only community news sites would rise to fill in at least some of the gaps left behind by shrinking legacy newspapers. Eight years later, the more prominent of the sites I reported on are still alive and well. The New Haven Independent, The Batavian, Voice of San Diego, and statehouse news services like CT News Junkie and The Connecticut Mirror are as vital today — if not more so — than they were back then.
But though there has been some growth, especially at the grassroots level, the hope for reasonably well-funded new forms of local journalism with the heft to hold government to account is largely unfulfilled. Efforts such as the Worcester Sun (disclosure: I’m an unpaid adviser) and WHAV Radio in Haverhill hold promise, but they’re still looking for a viable way forward. News deserts are spreading.
Paul Farhi of The Washington Post takes a look at an especially difficult case — East Palo Alto, California, a poor, mostly minority community in the shadow of wealthy Palto Alto. And he finds that in an area crying out for strong local journalism, the best that they have is East Palo Alto Today, a nonprofit with a print publication that only comes out once every other month.
Farhi also cites a study by the University of North Carolina on the role of hedge funds and other financial instruments in destroying local journalism. I intend to spend some time with that study in the days ahead.
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.
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.
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.”
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.
If you haven’t heard AOL chief executive Tim Armstrong’s nauseating conference call with Patch employees — complete with the mid-call firing of Patch creative director Abel Lenz, who had the audacity to take the great man’s photo — then by all means avail yourself of the opportunity. (Via Jim Romenesko, who has been diligently tracking the story of Patch’s woes.)
The end seems to be near for Patch, AOL’s network of hyperlocal websites, which never had a business model that made sense. Given that Patch is failing in precisely the way it was predicted to fail (see, for instance, this archive of Patch articles at Business Insider), Friday’s conference call was a time for Armstrong to show some decency and humility — not to strut around like a ’roided-up rooster.
The cuts Armstrong announced were devastating — over the next week, hundreds of employees will be laid off and around 400 Patch sites will be closed or somehow partnered with other sites, according to Darrell Etherington of TechCrunch. That’s nearly half of Patch’s 900 or so sites.
At this point, the most merciful thing Armstrong could do is shut down the whole thing and help the hard-working local editors become owner-operators. I suspect many of these sites could be viable if the corporate bureaucracy AOL has laid on top of them were removed.
Howard Owens, publisher of The Batavian, an independent online news site in western New York, makes a compelling case at NetNewsCheck that the economies of scale AOL promised not only haven’t materialized, but that putting together a vast network of hyperlocal site actually costs more than launching independents. The problems, he writes, include enormous tech investments and highly paid supervisors at corporate headquarters:
Armstrong chased scale: IT infrastructure scales, server farms scale, message systems scale, cloud computing scales. But local news does not scale.
Widget makers understand scale. The most expensive widget is the first one. Each new widget is comparatively pennies on the dollar.
In the news business, the first story costs just as much as the third or the 30th or the last. Online, it’s possible to get more production out of a single reporter, but time is not elastic. At the end of the day comes the end of the day.
What Armstrong should have done, Owens adds, is fund independent start-ups — an idea that AOL could still pursue, writes City University of New York journalism professor Jeff Jarvis at his blog, Buzz Machine. Jarvis offers this advice to Armstrong:
Set up independent entrepreneurs — your employees, my entrepreneurial graduates, unemployed newspaper folks — to take over the sites. Offer them the benefit of continued network ad sales — that’s enlightened self-interest for Patch and Aol. Offer them training. Offer them technology. And even offer them some startup capital.
You could end up better off than you ever were by being a member of an ecosystem instead of trying to own it.
Whether AOL steps or not, at least one other funding source for converting Patches into independent news sites has emerged. Over the weekend Debbie Galant, co-founder of the pioneering hyperlocal site Baristanet and now the director of the New Jersey News Commons at Montclair State University, announced on Twitter that her program was ready to offer grants and training to New Jersey Patch employees who lose their jobs. (There are 89 Patch sites in New Jersey, according to Patch’s online listings.)
As I found in “The Wired City,” hyperlocal online news is alive and well, with a variety of nonprofit and for-profit sites thriving. But as Owens says, local doesn’t scale. Independence and grassroots control are keys. Chain ownership was deadly to the newspaper business, and it was never a good idea for online news, either.
If the demise of Patch can lead to something better, then let’s get started.
I had a great time meeting people in Batavia, N.Y., this past weekend to promote “The Wired City.” My thanks to bookstore owner Erica Caldwell of Present Tense Books for putting it together.
I enjoyed catching up with Howard Owens, the publisher of The Batavian, with whom I’m in regular touch but who I hadn’t actually seen since 2009. I also had a chance to meet Tom Rivers, a former reporter and columnist for The Daily News of Batavia who — inspired by Owens — started a local news site called the Orleans Hub earlier this year.
Photo by Tom Rivers.
This article appeared earlier at the Nieman Journalism Lab. I’ll be reading from “The Wired City” this Saturday, July 13, at 11 a.m. at Present Tense Books, located in Batavia at 101 Washington Ave.
For those of a certain age, perusing the ads posted at The Batavian, a for-profit news site in Batavia, N.Y., can seem a lot like flipping through the pages of a weekly community newspaper a generation or two ago.
Which is to say there are a lot of ads — more than 140, every one on the home page, a practice that publisher Howard Owens believes is more effective than rotating them in and out. There are ads for funeral homes and pizza shops. For accountants and tattoo parlors. For auto-repair centers and ice-cream stands. For bars and baseball (the minor-league Batavia Muckdogs).
The success of The Batavian matters to the future of local journalism. In my book “The Wired City: Reimagining Journalism and Civic Life in the Post-Newspaper Age,” I devote most of my attention to the New Haven Independent, a nonprofit site that subsists on grant money, donations and sponsorships. At this early stage of online news, nonprofits like the Independent are often able to raise more money more quickly than for-profits. But not every community can support a nonprofit. Thus it is vital for the future of news that entrepreneurs like Owens figure out the for-profit side — which is why I also devote a fair amount of space in “The Wired City” to what’s going on in Batavia.
Owens launched The Batavian in 2008 as a demonstration project for GateHouse Media, where he was the director of digital publishing. When his position was eliminated in early 2009, he asked GateHouse if he could take the fledgling site with him. He was granted his wish.
The Batavian is free and covers not just the city of Batavia (population 15,000) but surrounding Genesee County (60,000) as well. It receives about 80,000 unique visitors per month, according to Quantcast. That’s roughly the same as the site’s newspaper competition, The Daily News, also based in Batavia. (Web analytics are imprecise, and Owens says his internal count, provided by Google Analytics, shows about 118,000 uniques per month.) Of course, The Daily, as the locals call it, depends mainly on print distribution. On the other hand, The Batavian covers just one county to The Daily’s three, making Owens’ online reach all the more impressive.
The Batavian’s 12-month projected revenues are currently about $180,000 a year — enough to provide Owens and his wife, Billie Owens, the site’s part-time editor, with a comfortable living, and to employ a part-time sales and marketing coordinator. Unlike AOL, with its struggling network of Patch sites, The Batavian is independent, and Owens aims to keep it that way. As the Authentically Local project, of which The Batavian is a part, puts it: “Local doesn’t scale.”
If a nonprofit like the New Haven Independent can raise more money than a for-profit (indeed, Independent founder and editor Paul Bass chose the nonprofit route in 2005 because he realized he couldn’t support himself with a for-profit), there are nevertheless certain advantages to for-profit online journalism. Let me outline three of the more obvious.
• Anyone can start a for-profit news site. The nonprofit route requires approval from the IRS and support from local foundations. In many cases, neither may be forthcoming — and as I recently wrote, the IRS has all but halted approval of 501(c)(3) status for nonprofit news sites, which they depend on so that donors can make tax-free contributions. By contrast, all it takes to launch a for-profit site is talent, experience and a willingness to work hard. That’s no guarantee of success, but the opportunity is there for all.
• Local ads enhance the vibrancy of a site. Owens likes to say that advertising is content. The ads at The Batavian give you a good feel for Genesee County — and provide a context for Owens’ coverage of everything from court news to traffic accidents, from school events to development proposals. Advertising and news work together to provide a well-rounded picture of the community. Yet you won’t see ads at a nonprofit site like the Independent, save for a few image-building “sponsorships” from local institutions such as college and hospitals.
• For-profit sites enjoy the full protection of the First Amendment. Like public radio and television stations, but unlike the vast majority of newspapers, nonprofit news sites are legally prohibited from endorsing candidates for public office. “Editorial endorsements — or the denial of them — are among the most powerful tools that newspapers have for holding political figures to account,” write the media scholar Robert McChesney and the journalist John Nichols in their 2010 book “The Death and Life of American Journalism: The Media Revolution that Will Begin the World Again.” The Batavian hasn’t actually endorsed any candidates, but at least it’s not legally prohibited from doing so — and Owens takes strong stands on other local issues without having to worry about the federal government swooping in and threatening his livelihood.
When I visited Batavia in 2009, I rode along with Owens as he made sales calls and covered stories in Genesee County. It seemed like a hard slog. At one point, as we were driving through the tiny farm town of Stafford, he gestured to a well-manicured golf course. “If you find out that I’ve joined the Stafford Country Club,” he said, “then I’ve been successful.” Two years later, I asked him about the status of his country club aspirations. He laughed. “I’d love to join the Stafford Country Club and have time to enjoy the privileges thereof,” he said, “but we’re probably years away from doing that.”
Yet The Batavian keeps growing. Last week the site announced a new real-estate ad partnership. Recently Owens told me he now spends virtually none of his time on ad sales, having offloaded that task to his part-time employee. The Owenses are able to devote the bulk of their time to journalism — something that was not the case when I was researching “The Wired City.”
Owens likes to remind people that we’re at the very beginning of online news as a business, and that what appears not to add up economically today may look quite different a few years from now. As Owens asked in a provocative blog post four years ago: “If it took newspapers more than 100 years to build the business and content models that we all now cherish, why do we expect a fully formed online model to emerge in just 10 years?”
Photos (cc) 2009 by Dan Kennedy.