Financial prospects keep sliding as Gannett prepares to shift away from local

Photo (cc) 2009 by Kevin Walsh

By Dan Kennedy

Gannett’s recent move away from local news is not taking place in a vacuum. Financial prospects for the country’s largest newspaper chain continue to deteriorate — and the company’s insistence on degrading its journalism rather than building it up is going to make it that much harder to attract new readers.

As I reported last week, the chain is reassigning staff reporters at most of its Massachusetts weeklies to cover regional beats rather than local news. Although Gannett officials have not commented, I’m told that the three exceptions will be the Cambridge Chronicle, the Old Colony Memorial in Plymouth and the Provincetown Banner. I’m also told that a few weekly reporters will be reassigned to Gannett’s dailies rather than to regional coverage of issues such as climate change and racial justice.

What we still don’t know is what, if any, coverage the Gannett weeklies will provide of such basics as governmental meetings and elections. Maybe part-timers will be used. Maybe they’ll just skip it. There were already a number of Gannett weeklies without any real local coverage, so that’s nothing new.

Meanwhile, the chain’s business continues to slide at its 100 or so daily newspapers and 1,000 weeklies and other properties, according to Poynter business analyst Rick Edmonds. Revenue for the fourth quarter was $827 million, a decline of 5.5%, as its much-ballyhooed increase in digital subscriptions appears to be driven by steep introductory discounts.

Edmonds writes that “as Gannett targets reaching 2 to 2.2 million digital subscriptions by the end of 2022, it faces the double challenge of holding the introductory subscribers as they move up to higher rates while also continuing to quickly add new subscribers.” And rather than invest in journalism, Gannett is putting money into sports gambling and marketing services.

And NFTs.

It’s an ugly tale. For Massachusetts readers, it’s a tale that extends back to the early 1990s, when Fidelity began rolling up community newspapers in Eastern Massachusetts. From Fidelity to the Boston Herald to GateHouse Media, which morphed into Gannett, it’s been 30 years of cuts, with very little in the way of good news.

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Babz Rawls Ivy, the radio voice of New Haven, shares her life and wisdom

Babz Rawls Ivy and Dan Kennedy outside her home in New Haven. Photo by Babz.

Babz Rawls Ivy is host and co-producer of “LoveBabz LoveTalk” on WNHH-LP radio in New Haven. But that doesn’t begin to describe her. So let’s add a few more words: Force of nature. Wise presence. Storyteller.

WNHH is a low-power FM community station launched seven years ago by the New Haven Independent, a pioneering online nonprofit news site. Paul Bass, founder and editor of the Independent, wanted to bring powerful local voices onto the airwaves. Babz Rawls Ivy brings truth-telling to a whole new level.

Rawls Ivy’s show is on the air every weekday from 9 to 11 a.m. If you’re in New Haven, you can hear it at 103.5 FM. You can also listen live on the Independent’s website and on its Facebook page, where programs are also available after the show. Past programs are also available on a number of other platforms, including Apple Podcasts. Just search for “WNHH Community Radio.”

In our Quick Takes for the week, Dan shares the latest on Gannett’s downgrading of local coverage, and Ellen asks whether retired journalists are the new seed capital for startup digital sites.

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

Tracking independent local news projects in Massachusetts

By Dan Kennedy

After I reported last week that Gannett was dropping most local news from its Massachusetts weekly newspapers in favor of regional coverage, I heard from a few independent hyperlocal publishers, several of them with projects I wasn’t familiar with. So I started compiling a list of independent news organizations, putting out the word for nominations on Twitter and Facebook.

The titles came pouring in. Independent journalism is alive and well in Massachusetts, and though I’m sure many of the projects I found are economically marginal, they’re providing the kind of granular community coverage that you just can’t get from a corporate chain-owned newspaper. There are weekly newspapers on my list as well as digital-only projects, a few dailies and even a couple of radio stations.

I’ve got nearly 200 entries, sortable by the name of the project, the community and the type. Some, like the Berkshire Eagle, serve multiple communities; most cover just one town or neighborhood. I’ve added a link to the menu bar for easy access. Meanwhile, please keep those nominations coming — just send an email to me at dan dot kennedy at northeastern dot edu.

Check out the full list by clicking here.

Gannett’s Mass. weeklies to replace much of their local news with regional coverage

A slidedeck explaining the new regional beats for Gannett’s local reporters. Click here or on image to view the deck in its entirety.

By Dan Kennedy

Gannett is poised to take a major step back from its coverage of Massachusetts communities as it prepares to replace local news in its weekly papers with regional stories about topics such as public safety, education, racial justice and the environment.

This post is based on communications I had with several sources who insisted on anonymity as well as internal documents that were provided to me. There are a number of details I don’t know. For instance: Is this part of a nationwide initiative? Will the dailies be affected? Will there be any coverage of such important matters as city council, select board and school committee meetings? How will local elections be handled?

Also, I hear that several — perhaps three — Massachusetts weeklies will not be affected by the move, including the Cambridge Chronicle. I don’t know which of the other papers will be left more or less alone.

Emails to Gannett corporate headquarters in McLean, Virginia, and to Gannett New England went unanswered. The company is the largest newspaper chain in the U.S., with more than 100 dailies and around 1,000 other media properties.

The Massachusetts papers are known collectively as Wicked Local. The changes will take effect within the next week or two. According to a message to employees from Len LaCara, content strategy analyst at Gannett’s USA Today Network, the change is being made in an attempt to bolster paid digital circulation and offset shrinking print readership. According to a screen shot of his message that was sent to me, he wrote:

There is ample evidence that people will not subscribe to read a lot of the content currently being produced for the newspapers. We see this in the low subscription numbers and the lack of traffic to the stories. But we have seen in community after community that the topics Lisa outlines for you are valued by your potential audience. [This is a reference to Lisa Strattan, vice president of news for Gannett New England.] They can and do generate loyal digital readers who will return to your site and renew their subscriptions.

Well, I want to know what’s going on at City Hall, and if my local Gannett weekly isn’t going to tell me, I’m stuck. In our community we have a Gannett weekly with a capable full-time reporter, who is apparently going to be reassigned to cover regional news. Other than that, we have Patch, Facebook and Nextdoor. Big opportunity for Patch, but I can’t imagine they’re going to staff up.

I’m told that Gannett journalists have been asked to apply for new regional jobs covering their preferred beats. Click on the slidedeck above for more details. Although Gannett has closed a number of weekly papers over the past year and has gone through round after round of job cuts, I hear that no one is losing their jobs as a result of this reorganization. I’ve also heard that a few of the weekly reports will be reassigned to one of Gannett’s dailies rather than to a regional beat.

As for the appeal of regional news — isn’t that why we have The Boston Globe, public radio and television, and TV newscasts? I want local news from my local paper. I understand that circulation at Gannett’s weeklies is shrinking, but I think it’s more likely because there isn’t enough local news rather than too much. This does not strike me as a smart move, to say the least.

Lincoln Millstein talks about his journey from high-powered media executive to hyperlocal journalist

Lincoln Millstein

Lincoln Millstein played a critical role in launching The Boston Globe’s free digital site, boston.com, in 1995. Boston.com began as a portal, and carried Globe journalism but also curated other news sites and community blogs. It had a separate staff, and the office was in downtown Boston, not in the old Dorchester plant. Lincoln went on to be executive vice president at New York Times Digital, then moved on to the Hearst Corporation, where he held a number of different roles.

When Lincoln retired as senior assistant to CEO Steven Swartz of Hearst in 2018, he wondered what was next. He found the answer by returning to his roots as a local reporter, recalling the days when he started out in the Middletown bureau of the Hartford Courant in the mid-1970s.

He and his wife, Irene Driscoll, also a longtime journalist, had upgraded their summer place in Maine in anticipation of spending more time there in retirement. Then the pandemic hit, and they moved in. He started picking up lots of local scoops on how the pandemic was affecting businesses. Not to mention the occasional deer collision. That’s how The Quietside Journal got its start.

Dan has a Quick Take on the Telegram & Gazette of Worcester, which recently won a big public-records victory over the city of Worcester, which has been stonewalling them for years, and Ellen looks at newsroom layoffs and transparency.

You can listen to our conversation here and subscribe through your favorite podcast app (as long as it’s not Spotify).

Digital circulation is growing, but it needs to be more and faster

Photo (cc) 2005 by rnv123

By Dan Kennedy

Will digital subscriptions save the newspaper business? They had better. With advertising in a death spiral, publishers have to hope that readers will pick up the slack. Progress has been slow, but it may finally be picking up.

Marc Tracy reports in The New York Times that several newspaper chains, including Lee Enterprises and Gannett, have experienced significant increases in paid digital circulation. The problem is that these increases are spread over many papers, and the situation at any one of them remains dicey.

For instance, Gannett is up 46% over the past year, to 1.5 million paid digital subscriptions — yet it owns about 250 daily papers, including USA Today. Those numbers need to be exponentially greater if Gannett is going to re-establish itself as a lucrative business and actually start adding rather than cutting journalistic resources.

“There’s a big misperception out there that there’s a big hole in local journalism, and I think that narrative’s been created by people who aren’t sitting in local markets,” Gannett chief executive Mike Reed told Tracy. As a longtime reader of Gannett’s (previously GateHouse Media’s) community weeklies, all I’ve got to say is: You’ve got to be kidding.

In order for paid digital to work, you also have to charge enough. To go back to USA Today, I see that the cost is $9.99 a month after the first-year discount expires. That’s not bad, but it’s well behind The Boston Globe’s $30 a month. And the Globe has managed to sell a reported 235,000 digital subscriptions. Of course, the Globe, like most newspapers, offers a huge discount to new subscribers, which means it then has to figure out a way to keep them.

In order to succeed with digital subscriptions, you need good content and good technology. Many of the papers now trying to succeed in the digital space have been cut substantially. And too many newspaper websites are still clunky mish-mashes with pop-ups, pop-unders and other annoyances.

It’s better to grow than to shrink, so in that sense I guess Tracy’s story is good news. But there’s still a long way to go.

News organizations need to stop stonewalling on layoffs and diversity data

Photo (cc) 2009 by Richard Kendall

By Dan Kennedy

The Poynter Institute has published an important story on the difficulty of tracking layoffs of journalists, especially journalists of color. As Kristen Hare writes, very few news organizations let it be known when they’ve eliminated positions. “For an industry that prizes transparency,” she says, “we’re experts at asking for it and rotten at actually offering it.”

She’s right, and it’s something I’ve found pretty frustrating whenever I hear reports that newspapers owned by Gannett or Alden Global Capital have downsized once again. Since many news organizations follow the practice of last hired, first fired, journalists from underrepresented groups tend to be disproportionately affected — but finding out exactly what happened is difficult if not impossible. Hare offers three explanations for why this information is so hard to come by:

  • “Lack of public notice about who was laid off and where
  • “A reluctance among some journalists to say anything publicly
  • “Growing use of nondisclosure agreements that include non-disparagement agreements”

Hare also quotes my Northeastern journalism colleague Meredith Clark, who’s been working with the News Leaders Association to revive its annual survey of newsroom diversity — a survey that was suspended several years ago because so few news organizations were responding. Dr. Clark puts it this way:

The thing is, journalism as an institution, as a business, has a vested interest in continuing to isolate people in terms of their knowledge of what the field actually looks like. And the corporatization of journalism helps with that because it’s easy to say, “Oh, this is a problem for HR,” or, “Oh, because of legal we can’t do this.”

Clark is absolutely right, and it extends well beyond layoff and diversity numbers. I’ve been covering the news media for more than 25 years, and though I’ve found a great deal of openness to the idea that journalists should be as transparent as they expect their sources to be, I’ve encountered plenty of examples of the opposite, too.

Unfortunately, we can’t file public-records requests or demand the right to attend meetings at media outlets. Rather, we have to rely on news executives to do the right thing. If they think government officials should be compelled to release data that casts them in an unfavorable light, then why do they think it ought to be different for media organizations?

Getting to the Crux of the matter with a Catholic news project that began at The Boston Globe

John Allen

Inés San Martín and John Allen join the “What Works” podcast to discuss the founding of Crux, a digital site that covers all things Catholic, and the “corporate resurrection” that took place three days after The Boston Globe shut it down.

Crux quickly partnered with the Knights of Columbus, a Catholic service organization, and now is a hybrid business model combining nonprofit support, crowd-funding and advertising. That means Crux has much in common with digital local news startups.

Inés San Martín

In our weekly Quick Takes, Ellen shares an update on a high-impact investigative project by Sahan Journal, and Dan discusses the Journalism Competition and Preservation Act, which has bipartisan support on Capitol Hill but is not a perfect solution to the local news crisis.

You can listen to our conversation here and subscribe through your favorite podcast app — as long as it isn’t Spotify. Like a number of musicians and podcasters, we’ve pulled our content from the service out of concern over vaccine disinformation being promulgated by Spotify podcast host Joe Rogan.

Help local news? Sure. Force Google and Facebook to pay? Probably not.

Sen. Amy Klobuchar meets a fan in Iowa. Photo (cc) 2019 by Gage Skidmore.

By Dan Kennedy

For years now, news executives have been complaining bitterly that Google and Facebook repurpose their journalism without paying for it. Now it looks like they might have an opportunity to do something about it.

Earlier this week a Senate subcommittee chaired by Sen. Amy Klobuchar, D-Minn., heard testimony about the Journalism Competition and Preservation Act (JCPA), sponsored by her and Sen. John Kennedy, R-La. The bill would allow representatives of the news business to bargain collectively over a compensation package with Google and Facebook without running afoul of antitrust laws. If they fall short, an arbitrator would impose a settlement.

“These big tech companies are not friends to journalism,” said Klobuchar, according to an account of the hearing by Gretchen Peck of the trade magazine Editor & Publisher. “They are raking in ad dollars while taking news content, feeding it to their users, and refusing to offer fair compensation.”

There’s no question that the local news ecosystem has fallen apart, and that technology has a lot to do with it. (So do the pernicious effects of corporate and hedge-fund ownership, which has imposed cost-cutting that goes far beyond what’s necessary to run a sustainable business.) But is the JCPA the best way to go about it?

The tech giants themselves have been claiming for years that they provide value to news organizations by sending traffic their way. True, except that the revenues brought in by digital advertising have plummeted over the past two decades. A lawsuit brought by newspaper publishers argues that the reason is Google’s illegal monopoly over digital advertising, cemented by a secret deal with Facebook not to compete.

Though Google and Facebook deny any wrongdoing, the lawsuit strikes me as a more promising strategy than the JCPA, which raises some serious questions about who would benefit. A similar law in Australia has mainly served to further enrich Rupert Murdoch.

Writing at Nieman Lab, Joshua Benton argues, among other things, that simply taxing the technology companies and using the money to fund tax subsidies for local news would be a better solution. Benton cites one provision of the Build Back Better legislation — a payroll tax deduction for hiring and retaining journalists.

In fact, though, the payroll provision is just one of three tax credits included in the Local Journalism Sustainability Act; the others would reward subscribers and advertisers. I have some reservations about using tax credits in a way that would indiscriminately reward hedge-fund owners along with independent operators. But I do think it’s worth a try.

Even though local news needs a lot of help, probably in the form of some public assistance, it strikes me that the Klobuchar-Kennedy proposal is the least attractive of the options now on the table.

How local news helped Callie Crossley with her research for ‘Eyes on the Prize’

Callie Crossley. Photo via GBH News.

Callie Crossley of GBH News is a multitalented broadcast journalist and producer. She hosts “Under the Radar with Callie Crossley” and shares radio essays each Monday on GBH’s “Morning Edition.” She also hosts “Basic Black,” which covers news events that have an impact on communities of color. Crossley’s work on “Eyes on the Prize: America’s Civil Rights Years” won numerous awards.

In a wide-ranging conversation with Ellen and Dan, Crossley shares her views on the thinning out of local news outlets and offers sage advice for next-generation journalists. Callie and Dan were regulars on “Beat the Press,” the award-winning GBH-TV show that featured media commentary, which ended its 22-year run in 2021. In 2019, both of them received the Yankee Quill Award from the New England Society of Newspaper Editors.

In Quick Takes on developments in local news, Dan laments the rise of robot journalism, and Ellen reports on an effort by publisher Lee Enterprises to fight off a takeover bid by the hedge fund Alden Global Capital.

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