Veteran progressive journalist Rory O’Connor has written a favorable review of “The Wired City” for the Huffington Post. He writes:
When we as a democratic society are at what Kennedy accurately calls “a historical moment when nonprofit media — supported by foundations, donations, and, indirectly, taxpayers, since contributions are tax-deductible — are in many cases more stable than for-profit media,” his book offers a valuable window into one possible future….
Researching his book, Kennedy concludes, “left me profoundly optimistic about the future of journalism.” Reading it will do the same for you.
O’Connor, an old friend, is, among many other things, the author of “Friends, Followers, and the Future: How Social Media are Changing Politics, Threatening Big Brands, and Killing Traditional Media.” I interviewed him about his book for (sniff) the Boston Phoenix last May.
I am thrilled and honored to report Jay Rosen, Callie Crossley, Dan Gillmor and Bill Densmore have weighed in with advance praise for “The Wired City.” Their reputations precede them. You can read what they have to say by clicking here.
One of the arguments I make in “The Wired City” is that the viability of local journalism depends on the vibrancy of the local communities it serves. Among the projects I look at is The Batavian, a for-profit online-only news site that serves Genesee County in western New York, about halfway between Buffalo and Rochester.
The Batavian is a free site, though publisher Howard Owens is experimenting with a membership model to provide extra benefits to readers who choose to pay. But what really makes The Batavian work, and has allowed it to prosper despite co-existing with a local daily newspaper, is the persistence of locally owned businesses. The site is packed with ads from car dealers, florists, pizza shops, hair salons, doctors’ offices, funeral homes and much more.
So I was intrigued when Owens posted a story on Friday reporting that a Dick’s Sporting Goods may be moving in to a former Lowe’s location — and that more than $1 million in tax incentives may be used to make it happen. Dick’s, of course, is a large corporate-owned chain, and it would compete directly with locally owned sporting-goods dealers.
One of those local business people, Mike Barrett of Batavia Marine, compared such tax incentives to “using your own tax money to put yourself out of business.”
There are, of course, other considerations. WBTA Radio, which has a content-sharing arrangement with The Batavian, reports that Dick’s would bring 120 much-needed jobs to the area. The Batavian’s competition, the Daily News (which, citing an anonymous source, reports that it’s a done deal), quotes a local official named Gregory Post as saying, “Anytime we can convert empty space and bring in a retailer of that magnitude is good. This will be fantastic for our town.”
In the long run, though, the spread of corporate chains and big-box stores leads to the demise of locally owned businesses. That’s bad for communities and for the news organizations that serve them. Owens, a dedicated localist, gets it.
Nicole Narea and Clifton Wang of the Yale Daily News have written a preview of “The Wired City,” which is primarily about the life and times of the New Haven Independent, an innovative online-only nonprofit news site.
At a moment when online paywalls have become one of the biggest issues debated within the news business, it’s interesting that both the Independent and its newspaper competitor, the New Haven Register, have decided to keep their sites free. Here’s what Independent founder and editor Paul Bass tells the Yale Daily News:
We need to cut down on the information apartheid. If we are going to construct a paywall, we may as well not publish. We believe in community empowerment through journalism.
Of course the Register, as a for-profit entity, has a different challenge: selling enough online advertising to justify its decision to continue giving away its news. It’s a philosophy that John Paton, chief executive of the Register’s corporate parent, the Journal Register Co., describes as “Digital First.”
Journal Register is currently in bankruptcy for the second time in four years, but is expected to re-emerge later this spring. No doubt it’s going to be painful — among other things, employees have been told they will have to reapply for their jobs, and it is far from clear how many will be rehired. The Newspaper Guild-Communications Workers of America recently had some tough words for Journal Register, reports Bill Shea of Crain’s Detroit Business.
As Joshua Benton of the Nieman Journal Lab observed last September, the re-emergence from bankruptcy will also represent the best chance for Paton — one of the most closely watched executives in the newspaper business — to prove that a digital orientation can turn around a legacy newspaper chain with a lower-revenue, lower-cost approach. Interesting times ahead.
Here is the slideshow I’m going to use in discussing “The Wired City” before a group of retired Northeastern alumni on Wednesday. I want to keep refining this, so advice is most definitely welcome.
I’ll be doing my first book-related event this Wednesday at noon, when I will speak at Northeastern’s Burlington campus as part of the NU@Noon alumni series.
I had a chance recently to talk with Michael Depp of NetNewsCheck (“The Business of Local Media”) on the state of hyperlocal websites, the future of nonprofit and for-profit business models, and my forthcoming book, “The Wired City.” So please have a look.
Banyan Project founder Tom Stites refers to Haverhill and cities like it as “news deserts” — that is, as communities so underserved by local journalism that government accountability and civic life are harmed. He and local activists hope to launch Banyan’s first online news co-op, Haverhill Matters, later this year. (I touch on Banyan in the Epilogue to “The Wired City.”)
Two generations ago, though, the mid-size industrial city, located in the Merrimack Valley near the New Hampshire border, was the scene of a daily newspaper war. According to an account recently published by the city’s online nonprofit radio station, WHAV, a newspaper strike led to years of debilitating rivalry between the established Haverhill Gazette and the upstart Haverhill Journal.
The Journal was started by the notorious William Loeb, owner of the Manchester Union Leader (now the New Hampshire Union Leader), in December 1957. The Gazette had temporarily ceased publishing after it was struck by members of the typographical union. And Haverhill merchants, worried that they had no place to advertise their Christmas wares, went to Loeb and asked him to do something. He published a couple of free shoppers, and then decided to start a full-fledged newspaper.
The WHAV article, by Tim Coco, is full of colorful details, especially concerning the federal antitrust case that grew out of the rivalry. In a nutshell, Loeb secretly paid businessmen to buy ads only in the Journal and to badmouth the Gazette at every opportunity. And the Gazette sold ads below cost, which can in some circumstances be illegal. But it was great for readers while it lasted. As Coco puts it at the beginning of his essay:
News media competition helps ensure the inner workings of every government department are exposed to the light of day and held accountable, every service club talk is covered and every military personnel homecoming is treated with reverence.
On the other hand, U.S. District Court Judge Charles Wyzanski, who presided over the antitrust hearings, concluded it was impossible for two daily papers in a city the size of Haverhill to operate profitably unless they offered “limited news coverage” and “inferior general quality.” The Gazette quickly ran into trouble, and in 1958 it was acquired by a consortium of newspaper publishers. The unstable rivalry persisted until Loeb shuttered the Journal in 1965.
Eventually the Gazette was acquired outright by The Eagle-Tribune, headquartered in North Andover but traditionally associated with Lawrence. The Eagle-Tribune started a daily Haverhill edition and converted the Gazette to a weekly. In 2005, The Eagle-Tribune and its affiliated papers on the North Shore were bought by CNHI, a Birmingham, Ala.-based chain. And as Coco notes, in March 2012, The Eagle-Tribune closed the Gazette’s Haverhill offices.
“After 191 years,” Coco writes, “The Haverhill Gazette no longer had a physical presence in Haverhill.”
Now, nearly a half-century after daily newspaper competition came to an end in Haverhill, the city is on the verge of becoming a hotbed of experimentation in community journalism. In addition to the Banyan Project, WHAV has launched something called the “Democracy, Independence and Sustainability Project.”
I’m hoping there’s going to be a lot more to come as 2013 unfolds.
Update: After I posted a link to this on Twitter, John Dodge let me know that another, lesser-known daily paper called the Independent published in Haverhill in the late 1970s. Begun by longtime Gazette staffers, Dodge says the Independent couldn’t survive because the DeMoulas supermarket chain wouldn’t buy any ads.
A couple of friends today sent me a link to Mike Fourcher’s ruminations on what he learned running the Center Square Journal, a hyperlocal news site in Chicago that he started three years ago. He offers 21 lessons, and they’re not without value. But what stands out from my reading of them is that he simply faced too much competition for advertisers and readers. And that, in turn, was a consequence of his making an unfortunate choice of location.
New Haven illustrates my point. Paul Bass launched the Independent in 2005 to provide city and neighborhood news that was largely being ignored by everyone else — including the region’s daily paper, the New Haven Register, which tended to focus on the suburbs around New Haven. Eight years later, the Independent and the Register still serve different audiences. They compete for certain types of city news, but mainly they stay out of each other’s way. And because the Independent is a nonprofit, they’re not competing for scarce advertising dollars.
The Batavian is very different from the Independent, but it has similar advantages. The for-profit site was launched in Batavia, N.Y., by the GateHouse chain in 2008 as a pilot project. In 2009 it was acquired by Howard Owens after he was let go as GateHouse’s director of digital media.
The Batavian was up against two established news organizations: The Daily News and WBTA Radio. Owens formed a partnership with the radio station and competed fiercely with The Daily, as the locals call it. Unlike Fourcher’s experience in Chicago, though, there really wasn’t anyone else.
Like Paul Bass in New Haven, Owens carved out a niche by going more local than his competition — one county for The Batavian versus three for The Daily. It turned out that the business community was vibrant enough to support a daily newspaper, a radio station and a community website. But if there were, say, a half-dozen websites all trying to turn a profit, it’s not likely any of them would be able to make money.
Fourcher, a refugee from the robo-news operation Journatic, is now trying something interesting. He’s called a community meeting for Jan. 31 to see if his readers like the Center Square Journal enough to help him continue it in some form, or possibly to take it over in its entirety.
What’s evident from his 21 lessons, though, is that he fell short of making the Journal a vital part of his readers’ lives — possibly because there were already too many other voices competing for people’s time, attention and dollars.
