Small-Market Newspapers in the Digital Age

We started our research with a relatively simple but ambitious research question: How do small market newspapers respond to digital disruption. While we recognize that the future of small-market newspapers will continue to mirror the rock-solid industry sector as a whole, our research shows that there is cause for optimism.

Introduction

This report stems from our long-standing interest in the health of local news and the importance of local journalism to communities and the wider information ecosystem. Two years later, more than a hundred titles were closed, including major publications such as the Rocky Mountain News; revenues plummeted by nearly twenty billion dollars to hover around thirty-seven billion dollars; and the labor force fell to 56,230,234.

Research Context and

Why Local Matters: The Three Major Impacts of Local News

The value to democracy

Shaker found that both "Seattle and Denver suffered significant negative declines in civic engagement when they lost one of their daily newspapers."17 The relationship between newspaper reading and civic engagement was again confirmed by Sam Shulhofer-Wohl and Miguel Garrido, who studied the closing of The Cincinnati Post in 2007 and observed that their competitiveness in elections helped determine what was a reduction in membership in elections. now called "the information needs of societies". This has been defined as: "the forms of information necessary for citizens and community members to live safe and healthy lives; to have full access to educational, employment and business opportunities; and to participate fully in the civic and democratic life of their communities if they choose."19.

Value to the community

Here, community members are often more interested in newspapers' ability to be a "good neighbor" than an attack dog.3435. To do this, small newspapers often focus on solutions rather than just identifying problems.

Value to media ecosystems

This departs from traditional concepts of objectivity in American journalism, bringing it more in line with the principles of public journalism and citizen journalism.36 Today, these characteristics are increasingly reflected through the lens of "solutions journalism."37. This led Nielsen to argue that although newspapers may have lost their status as "mainstream media", they still serve as "mainstream media" by existing as "the main providers of a specific and important type of information and enabling coverage of other media". Their continued decline has "serious ecological consequences that reach far beyond their audience."41.

By the Numbers: Essential Data on the Newspaper Industry, 2007-2016

What about local?

The missing middle: small-market newspapers in the United States

Implications

The data and the three clear conclusions that emerge from it suggest that small market newspapers represent a 'silent majority': a large group about which we as a community of researchers know very little and a community of practitioners that too often - we are told - knows little about itself. From the data gathered from our research, we also sought to report on the future of small market newspapers by asking: How can small market newspapers best prepare for the future.

Definitions: What Is a

Small-Market Newspaper?

The initial list of respondents was compiled based on existing contacts and knowledge of the field. In the end, we developed three overarching themes (revenues and business models, changing journalistic practice, and evolving philosophies of journalism), which we share below.

Why This Report Matters

Using a method known in the social sciences as grounded theory,47 we conducted close readings of the transcripts and began to gather categories and themes. By combining these insights with our own analysis and expertise, we hope this report will make a significant contribution to the discussion about the state of small-market newspapers in the United States and their continued importance to communities and the broader news and information ecosystem.

How Are Small-Market

In this section, we outline some of the key themes that emerged from our interviews with experts and industry experts as we consider how small-market newspapers are adapting to the ever-changing media landscape in which they operate. When we talk about digital disruption, we do not attach negative or positive connotations to the term, but rather recognize that the last decade has seen a seismic shift in the industry, a segment of which – small-market newspapers – has been under-researched.5960 Small-market newspapers need to tackle key issues related to their operations and content on several fronts: this includes re-examining their structures and revenue models. they are changing the nature of what they do and how they do it.

Business and Revenue Models

This story, which touches on business and revenue models and the practice and philosophy of local newspaper journalism, is explored in the first part of this report. Our research uncovered a number of ways small-market newspapers are working to diversify their revenue streams and secure their future.

Context: the revenue challenge

Our research found that publishers are keenly aware of this need, but also recognize that this transition cannot be achieved overnight.

Seven Popular

Revenue-Raising Practices

Subscriptions and single-copy sales
Paywalls and digital subscriptions
Events
Media services
Newsletters
Obituaries
Foundations, crowdfunding, and other emerging ideas

Of the new, emerging sources of revenue newspapers are dealing with, the event space is perhaps one of the most promising. Do a color photo, and that's not a bad side income.” At the same time, Coleburn readily conceded that "obits are a very important part of record of the newspaper, no doubt, [and a] record of the community."

Final thoughts on revenue matters

Changing Journalistic Practice

Social media as standard (but it's an often uneasy relationship)

Data from the “Reuters Institute Digital News Report 2017” found that fifty-one percent of digital news consumers in the United States now get their news from social media, a cohort that has grown five percent since 2016 and doubled since 2013.116.

The growth of video and live video reporting

Access issues are an important consideration, particularly in rural communities where availability may be more limited. Conversely, given the need for scale and reach, video may be a format that is much more successful for larger newspapers, where views are larger and thus the opportunity for advertising or sponsorship may be more distinct.

The emerging importance—and influence—of metrics

Arguably, one of the biggest differences is in the speed of publication and audience expectations around the availability of news content. For some publishers, being a weekly is an editorial asset that allows them to step back and report the news differently than those caught in the cycle of daily publishing and 24/7 social media updates.

The new model journalist

Final thoughts on changing journalistic practice

Evolving Principles and Philosophies

The value and prominence of partnerships

And it was, in 2009, the first of its kind in the country where a non-profit organization was reporting for a daily newspaper. There are some national publications that reach out to local newsrooms, Elizabeth said, "but I feel like there's reluctance in local newsrooms" that don't always see how they would benefit.

Engagement

Others pointed out how their approach has changed over time, with Emily Ramshaw of The Texas Tribune writing that "two years ago we were streaming all our own events live and on our website, and now we're using Facebook [Live] to do most of what we do." Also, smaller newspapers are better at getting more people in the paper than larger ones.

Objectivity, advocacy, and solutions

In the process of accepting the consequences of this dynamic, small-market newspapers find that they can open up to newer ideas, such as solution journalism,141 so that they not only shed light on problems, but also potential solutions. The Seattle Times has been active in the field of solutions for some time with its Education Lab142 initiative.143 Others are following suit.144

Final thoughts on evolving principles and philosophies

There's a definite jump you're making from doing rogue reporting on school boards and police blotters to doing an in-depth reported piece that not only addresses concerns in the community, but links those concerns to avenues for constructive discussion. At a time of increasingly polarized and bipartisan politics, coupled with a deep distrust of the media by some constituencies, small newspapers may need to double their value to the community - beyond just reporting the news - to ensure their importance and impact is understood, valued and paid for.

Ten Key Takeaways: How Are Small-Market Newspapers Responding to Digital disruption?

The emergence and establishment of digital tools and audiences require that even small-market newspapers, and the journalists who work in them, continually expand their skills. Moving beyond traditional reader engagement models can help retain and grow audiences as well as unlock new revenue streams.

How Can Small-Market

The ability to address these challenges is dependent on a host of pre-existing conditions, including the work culture, ownership, structures and business models found at different papers. These considerations each play a role in the ability of a paper to turn in a different direction.

Context: The Impact, Influence, and Importance of Business Models

The experience of rural titles, for example, is often very different from their more urban counterparts in terms of competition and news plurality,146 the size of the local advertising market, and the penetration and availability of digital technologies.147. Rather, as we have argued throughout our research for this project, there is tremendous diversity in this sector, and the experience of small-market newspapers must be considered in a more nuanced way.148 The successes or failures of various local news media must be placed in their full and proper context.

The experience of larger groups

With that in mind, below is an overview of some of the key ways news organizations are responding to the business model challenges created by digital disruption. The goal of these groups, he said, "is just to milk as much profit out of the franchise until it dies."

Smaller groups and standalones

How small-market newspapers can best prepare for the future. who also owns the Santa Fe Reporter in New Mexico and Indy Week in The Triangle area of North Carolina), reflected on his own experience in the space, saying, "As much as we're successful, it's because we realize that these papers shouldn't be an identical replica of what we have in Portland, but these papers need to be created, designed and run by people who live and work in that market." As Coats explained, "We have an exchange of our inventory available to larger buyers like are Honda, Disney - the major brands that buy our non-locally sold inventory.

Why your business model matters

This means that businesses must be able to try new ideas and have both the license to fail and to fail fast. As Robyn Tomlin of The Dallas Morning News acknowledged, “Nobody wants to put all your eggs in one basket.

Nine Strategic Questions for Industry Leaders

How can you best focus on original reporting?

This impact offers potential cause for optimism, as does Al Cross's idea that "the kind of stuff people get out of a local newspaper is the kind of stuff people will still want a hundred years from now." He continued: “What is happening in my area. Only the local newspaper is likely to be the consistently reliable source of that information.”

What is the master narrative of your community?

Can you own it?

What are the metrics telling you? To what extent does this matter?
Can partnerships help you deliver some of your goals?
Do you have the right structure, staff, and skills mix?
Are you making the right tech calls?
What opportunities for income diversification can you realize?
How can you make time to experiment?
What can you do to stop talking your industry down?

Pulkkinen explained, "I think there's a danger that as journalists, when we're told we have to care about metrics and we have to care about growing our uniques, getting that social engagement, there's a danger that we write like we're just told to do stupid things that people will share." As Gannett's Joel Christopher told us: "I think we've had this self-fulfilling prophecy where we've told our readers that we're dying and therefore irreplaceable."

Ten Key Takeaways: How Can Small-Market Newspapers Best Prepare for the Future?

Given all the uncertainty facing small newspapers and other media outlets, it's essential to make time to experiment. We need to tell this story better so that the impact and successes of small newspapers are better understood and heard.

Concluding Remarks

We're optimistic about that, though we also recognize that there will continue to be pain and further adjustment as small-market newspapers continue to find their way in this brave new digital world. Small market newspapers – by being bold, engaging and offering content and information of value to their communities – can continue to be a monument to the past, present and future of the areas they serve.

About the Authors

Appendices

List of Interviewees

Interview Protocol

Preliminary Questions

Citations

The Media Briefing, https://www.themediabriefing.com/article/watch-retail- to-know-the-direction-of-local-media. Damian Radclife, “Seven Lessons for Publishers from the Dallas Morning News,” The Media Briefing, 2016, https://www.themediabriefing.com/article/.