Our latest “What Works” podcast features Damon Kiesow, a professor at the University of Missouri School of Journalism, where he holds the Knight Chair in Digital Editing and Producing. But Ellen Clegg and I first met him about 10 years ago when he was at The Boston Globe, developing mobile products for Boston.com and BostonGlobe.com.
At the time, the new Globe.com site had been launched with a paywall, and featured the Globe’s journalism. Although print revenue is still significant, the paywall strategy seems to be paying off now in terms of digital subscriptions. Kiesow and others were working on emerging technologies in mobile and social media. Kiesow focused on human-centered design: how readers interact with a print newspaper versus a digital side. Does some 150 years of experience reading print make a difference? Why is doom scrolling on digital platforms so exhausting? Tune in and find out.
Plus Ellen takes a quick look at a powerful newspaper collaboration in South Carolina that is rooting out scandal after scandal, and I offer an update on the vibrant digital archive of the late, great Boston Phoenix, housed at Northeastern University and now freely available online.
Our guest on the latest episode of the “What Works” podcast is Rhema Bland, the first permanent director of the Ida B. Wells Society for Investigative Reporting at the University of North Carolina school of journalism. She was appointed in October 2020 after working in higher education as an adviser to student media programs. She is a veteran journalist who has reported and produced for CBS, the Florida Times-Union, WJCT and the New York Daily News.
The Wells Society was co-founded by award-winning journalists Nikole Hannah-Jones, Ron Nixon and Topher Sanders. The society is named after the path-breaking Black journalist and activist Ida B. Wells, who fearlessly covered the lynching of Black men and was present at the creation of the NAACP. The society’s mission is essential to the industry: to “increase the ranks, retention and profile of reporters and editors of color in the field of investigative reporting.” Bland and her colleagues host training seminars for journalists across the country, focusing on everything from entrepreneurship to racial inequality to COVID-19.
Also in this episode, Ellen Clegg talks about Ogden Newspapers’ purchase of Swift Communications, which publishes community papers in western ski towns as well as niche agricultural titles like the Goat Journal. And I share news about federal antitrust lawsuits that are in the works against Google and Facebook by more than 200 newspapers.
You can listen here and sign up via Apple Podcasts, Spotify or wherever fine podcasts are found.
Previously published at GBH News. It’s rather late in the game to ask whether hedge funds can be stopped from buying up every last one of our local newspapers. After all, about half of us are already stuck with a paper that is owned by, or is in debt to, the likes of Alden Global Capital (Tribune Publishing and MediaNews Group), Apollo Global Management (Gannett) and Chatham Asset Management (McClatchy).
Still, with Alden having now set its sights on Lee Enterprises, a chain that owns 77 daily newspapers in 26 states, we need to take steps aimed at preventing what is already a debacle from devolving into a catastrophe.
So what can be done? Steven Waldman, the co-founder of Report for America, which places young journalists in newsrooms, has some ideas. At the top of his list: redefining antitrust law.
“In general, antitrust law for the past three or four decades has focused on whether mergers would hurt consumers by raising prices or reducing competition,” Waldman wrote recently for the Washington Monthly. “But before that, antitrust regulators looked at mergers more broadly, including whether they would hurt communities. And that’s what needs to happen here.”
Waldman would also provide tax incentives for nonprofit organizations seeking to buy newspapers as well as tax credits to make it easier for news organizations to hire or retain journalists. That latter provision is part of the Build Back Better legislation, whose uncertain fate rests in the hands of Sens. Joe Manchin and Kyrsten Sinema.
“This will strengthen local news organizations of all shapes and sizes, making them less vulnerable to vultures,” Waldman argued. “The legislation could be a powerful antidote to the sickness spreading within local communities.” Trouble is, the tax credits would benefit the Aldens and the Gannetts just as much as they would the independently owned news organizations that are struggling for survival. Still, it seems like a step worth trying.
The problem with hedge funds owning newspapers is that such funds exist solely for the purpose of enriching their investors. Newspapers, of course, aren’t exactly lucrative. But they still have advertising and circulation revenues, even if they are much smaller than they were, say, 20 or 30 years ago. Cut expenses to the bone by laying off reporters and selling real estate, and you can squeeze out profits for the enrichment of the owners.
Alden is notorious for being the most avaricious of the bunch. Which is why shock waves ripped throughout the journalistic community last week when Rick Edmonds of the Poynter Institute reported that Alden — just months after feasting on Tribune’s nine major-market dailies — was making a bid for Lee, whose papers include the St. Louis Post-Dispatch, The Buffalo News and the Arizona Daily Star. (Julie Reynolds, an investigative reporter who has been dogging Alden for years, recently spoke about the hedge fund with Ellen Clegg and me as part of our podcast, “What Works: The Future of Local News,” at Northeastern University.)
Lee’s papers also include the Omaha World-Herald, and therein lies a sad story. The World-Herald was at one time the flagship of hometown boy Warren Buffett’s newspaper chain, which he began assembling in 2012. But despite Buffett’s self-proclaimed love for newspapers, he failed to invest in their future, cutting them repeatedly and eventually selling out to Lee. Now they face the possibility of a much worse fate.
Or not. Several days after Alden offered to buy Lee in a deal valued at $141 million, the Lee board of directors adopted a poison pill provison. As reported by Benjamin Mullin in The Wall Street Journal, Alden — which currently holds about 6% of Lee stock — would be forbidden for the next year from increasing its share above 10%. If nothing else, the move provides some time for other buyers to emerge. Perhaps the chain will be broken up, with some of Lee’s papers being acquired by local owners.
As Waldman suggests, there is nothing inevitable about local news being destroyed at the hands of venture capital. About two and a half years ago, I wrote about The Salt Lake Tribune, acquired from Alden by local interests and converted into a nonprofit news organization. Now, according to Lauren Gustus, the Tribune’s executive editor, the paper is adding staff and resources. “We celebrate 150 years this year and we are healthy,” she wrote in a message to readers recently. “We are sustainable in 2021, and we have no plans to return to a previously precarious position.”
Alden’s acquisition of Tribune Publishing (not The Salt Lake Tribune; I realize there are a lot of Tribunes to keep track of here) was an avoidable tragedy, made possible by a board that placed greed above the public interest. Since closing the deal, the hedge fund has been hacking away at Tribune newspapers that were already much diminished, including the Chicago Tribune, New York’s Daily News and the Hartford Courant.
Yet some good may come out of it, too: Stewart Bainum, a hotel magnate who had competed with Alden for Tribune, is starting a well-funded nonprofit news site, The Baltimore Banner, that will compete with Tribune’s Baltimore Sun. Maybe that will lead to similar efforts in other Tribune cities.
Meanwhile, Lee Enterprises’ newspapers are safe, at least for now. What will happen a year from now is anybody’s guess. But as long as the vulture can be kept outside the cave, there is hope for the millions of readers who depend on a Lee newspaper to stay informed about what’s happening in their community.
Sen. Joe Manchin. Photo (cc) 2017 by Third Way Think Tank.
The Local Journalism Sustainability Act (LJSA), which I’ve written about rather obsessively here, is built upon the foundation of a three-legged stool: a tax write-off for individuals of up to $250 for subscription fees or donations to local news organizations; a tax credit for advertisers in local news outlets; and a payroll tax credit for publishers that hire or retain journalists.
Now the payroll credit has been carved out and added to the Build Back Better bill, which has passed the House and now faces uncertain prospects in the Senate. Marc Tracy reports in The New York Times that the provision would add up to nearly $1.7 billion over the next five years for newspapers, digital operations and broadcast operations.
Tracy notes — rather huffily, if I’m reading him accurately — that large newspapers like the Times would be excluded because they employ more than 1,500 in one location, but giant newspaper chains such as Gannett and those owned by Alden Global Capital would stand to benefit. As I’ve said before, I wish there were a way of restricting the benefits to independent owners; still, this strikes me as worth trying.
What I’m more concerned about is the political wisdom of adding just one part of the LJSA to Build Back Better, which — despite the optimism voiced by President Biden and other Democratic leaders — could be doomed given the seemingly endless demands made by Democratic Sens. Joe Manchin and Kyrsten Sinema.
There is at least some bipartisan support for the LJSA. Moreover, the tax write-off for subscriptions and donations strikes me as more interesting and creative than simply handing money to publishers for not laying people off. If Build Back Better passes, it will be with just 50 Democratic votes and Vice President Harris breaking the tie — and at that point it seems likely that the other two legs of the stool would disappear. If Build Back Better goes down to defeat, proponents of the LJSA will have to start from scratch.
Even so, the benefits that would be provided by the payroll tax credit are not insignificant. Art Cullen, editor of Iowa’s Storm Lake Times, tells The New York Times that the credit would mean $200,000 in just the first year for his struggling newspaper. “We’d be walking in tall cotton,” he’s quoted as saying. (Ellen Clegg and I spoke with Cullen recently on our podcast, What Works: The Future of Local News.)
Providing government assistance to journalism is fraught with concerns about the First Amendment and the need for an independent press. Yet journalism has always benefited from government help, starting with postal subsidies in the late 1700s. The LJSA is worth trying. I just hope that Democratic leaders haven’t outsmarted themselves by splitting up a bill that stood a decent chance of passing and grafting it onto a large package that they just can’t seem to get done.
Penelope “Penny” Muse Abernathy, a visiting professor at Northwestern University’s Medill School of Journalism, arguably launched a movement with her path-breaking research on “news deserts” and the forces undermining community newspapers across the nation.
Abernathy, a former executive with The New York Times and The Wall Street Journal, was also Knight Chair in Journalism and Digital Media Economics at the University of North Carolina from 2008 to 2020. She talks about why this is a pivotal moment for community journalism, about her forthcoming research and about why her journalism students are still bullish on speaking truth to power at the local level.
In Quick Takes, Dan reports that the nonprofit strategy at The Salt Lake City Tribune is actually working out, and Ellen tunes us in to Heartland Signal, a new digital outlet with a Democratic spin that is setting up to cover the midterm congressional elections.
Please give us a listen — and subscribe via Apple Podcasts, Spotify or wherever fine podcasts are available.
You sometimes hear that nonprofit status is not a solution to the local news crisis. After all, just because a media outlet is a nonprofit doesn’t mean it’s exempt from having to bring in revenue and balance its books.
True. But nonprofit ownership also means local ownership invested in the community. Which is why the latest news from The Salt Lake Tribune, the largest daily paper in Utah, is so heartening.
According to a recent update from Lauren Gustus, the executive editor, the Tribune is growing. The newsroom, she writes, is 23% larger than it was a year ago, with the paper adding a three-member Innovation Lab reporting team and beefing up its reporting, digital and editing operations. After cutting back to just one print edition each week, it’s adding a second. The Tribune is also taking care of its employees, she says, providing much-needed equipment to its photographers as well as a 401(k) match and parental leave.
“We celebrate 150 years this year and we are healthy,” she writes. “We are sustainable in 2021, and we have no plans to return to a previously precarious position.”
The Tribune was acquired from the hedge fund Alden Global Capital in 2016 by Paul Huntsman, part of a politically connected Utah family. As I wrote for GBH News in 2019, Huntsman, like many civic-minded publishers before him, discovered that owning a newspaper isn’t as easy as he might have imagined. He was forced to cut the staff in order to make ends meet before hitting on the idea of transforming the Tribune into the first large nonprofit newspaper in the country.
Nonprofit ownership makes it easier to raise tax-deductible grant money from foundations, and it transforms the subscription model into a membership model. Done right, the audience feels invested in the news organization in a way that it generally doesn’t with a for-profit newspaper.
One disadvantage is that nonprofit news organizations are constrained from some traditional newspaper functions, including having a robust editorial page that endorses political candidates. On the latest episode of our podcast, “What Works,” Storm Lake Times editor Art Cullen told Ellen Clegg and me that’s why he and his older brother, John, the publisher, have kept their paper for-profit.
What the Cullens have done instead is set up a nonprofit organization called the Western Iowa Journalism Foundation that can receive tax-deductible donations to support the Times and several other papers. It’s a model similar to that used by news outlets as large as The Philadelphia Inquirer and as small as The Colorado Sun and The Provincetown Independent.
The local news crisis will not be solved by a single model, and there’s plenty of room for nonprofits, for-profits and hybrids. What’s taking place in Salt Lake is important, and is sure to be watched by other news executives.
“The Tribune will welcome more journalists in 2022,” writes Gustus, “because you’ve told us many times over that this is what you want and because if we are not holding those in public office to account, there are few others who will.”
Could public access cable TV help solve the local news crisis? It’s a question that we put to Chris Lovett on this week’s “What Works” podcast. Lovett recently retired as the longtime anchor of Boston’s “Neighborhood Network News,” a first-rate daily newscast he produced along with journalism students from Boston University.
Lovett was skeptical. Funding for public access has been drying up in recent years as increasing numbers of viewers cut the cable cord and watch video exclusively on the internet. Donald Trump’s FCC took steps to reduce the amount of money public access received as well. And as Lovett observed, public access lacks the political support that it once had when, for example, the late Boston Mayor Tom Menino saw it as a way to reach his constituents. By contrast, incoming Mayor Michelle Wu is a master of social media, where she can control her own message.
Now Antoine Haywood and Victor Pickard have weighed in with some ideas, published at Nieman Lab, built around the possibility of mobilizing the country’s 1,600 public access operations. They write:
Instead of letting PEG [public, educational and governmental] channels wither due to commercial market fluctuations, we should publicly fund and expand the precious communication infrastructure that access media offers. A national fund that distributes local journalism grants, based on demonstrated community need, could benefit public access media centers interested in building collaborative, solutions-oriented types of journalism programs. Modest grants in the range of $100,000 to $300,000 would enable small operations to hire editorial staff, train and compensate community reporters, and forge collaborative partnerships with other news organizations.
It’s an interesting idea. Traditionally, with a few notable exceptions like “NNN,” public access has seen its mission mainly as a platform for training members of the community, carrying such events as governmental meetings and school plays, and providing a forum for someone who might want to host their own talk show. What public access has not done is provide reported, vetted journalism.
But maybe that can change. With community newspapers under siege, public access might prove to be a worthwhile alternative.
In our latest “What Works” podcast, Ellen Clegg and I speak with Chris Lovett, the just-retired anchor of Boston’s Neighborhood Network News. Topics we discuss include highlights from Lovett’s long career and his views on whether local access cable could help solve the community journalism crisis.
A Dorchester native, he’s interviewed local activists, politicos (including Tom Menino when he was a district city councilor) and neighborhood stalwarts. Lovett had a front-row seat as the changing media landscape shaped Boston, and he connects the dots between Menino’s early days as a frequent broadcast guest and Michelle Wu’s strategic use of social media. He has also shared his expertise with any number of Boston University students. And he’s not done with journalism yet, so stay tuned.
We also kick around the latest on the Local Journalism Sustainability Act and the NewsMatch program, introduced by the Institute for Nonprofit News, which matches donations to nonprofit news organizations and has proved to be an important source of revenue.
Please give us a listen — and subscribe via Apple Podcasts, Spotify or wherever fine podcasts are found.
On our latest “What Works” podcast, Ellen Clegg and I interview the investigative reporter Julie Reynolds, the scourge of Alden Global Capital. Reynolds gives us the lowdown on Tribune Publishing’s legally dubious vote to sell its nine major-market newspapers to the hedge fund as well as Alden’s relationship with Cerberus Capital Management, the “shadow bank” that helped finance that acquisition.
Other topics include Rocky, Bullwinkle and pink slime. You’ll find more details — and information on how to subscribe to the podcast — right here.
I am thrilled to announce the debut of our podcast, “What Works: The Future of Local News,” from Northeastern University’s School of Journalism.
Every month — and soon, perhaps, every week — former Boston Globe editor Ellen Clegg and I will talk to journalists, policymakers and entrepreneurs about efforts they’re making to keep local news alive. (We’re working on a book with the same name.) Corporate chains and hedge funds are squeezing the life out of local news. There is a better way. We and our guests are telling that story.
In our first episode, I interview Massachusetts state Rep. Lori Ehrlich, a Marblehead Democrat who co-sponsored legislation to launch a commission that will study the future of local news in the state. (Note: I’ll be a member of the commission.) Ehrlich lays out her vision and underscores the role that local journalism plays in a democracy. Ellen and I share a few quick takes on the news as well.
You can subscribe on Apple Podcasts, Spotify or Pocket Casts, and we’re aiming for more platforms soon. We hope you’ll give it a listen — we’re very excited about this project, which has been long in the making.
Also, many thanks to Alison Booth, who designed the graphic that accompanies our podcast, and to Promiser, whose song “WOW!” is our theme. Wow indeed.
