How the for-profit/nonprofit model is bolstering coverage at The Berkshire Eagle

Fredric Rutberg. Berkshire Eagle photo by Ben Garver and used by permission.

By Dan Kennedy

One of the more interesting business models for local news that Ellen Clegg and I have encountered in our work is what you might call the hybrid for-profit/nonprofit. For-profit organizations such as The Mendocino Voice in Northern California, The Colorado Sun, the Storm Lake Times Pilot in Iowa and The Provincetown Independent have either set up nonprofit arms or are working with existing nonprofits to raise tax-exempt money that can be used to support certain types of public interest journalism.

This past Monday, Fredric Rutberg explained how that model is working at The Berkshire Eagle, the Pittsfield, Massachusetts-based paper that he and several other business leaders rescued from the hedge fund Alden Global Capital back in 2016. A retired judge, Rutberg is now publisher and president of the Eagle. He spoke at the spring conference of the NorthEast Association of Communication Executives, held in Meredith, New Hampshire.

After Rutberg and his partners acquired the Eagle, he said, they considered — and rejected — the nonprofit model. Among other things, they wanted to maintain the paper’s editorial voice, and nonprofits aren’t allowed to endorse political candidates or specific pieces of legislation.

“Our editorial page is very important to us,” he said. “We were very proud to be among the first five or six papers in the country nationally to endorse Hillary Clinton over Donald Trump.” And though he conceded the impact of that endorsement was “marginal,” the paper’s editorial voice really matters when it comes to candidates for local office. “We think we have something to say,” he said. “We don’t want to give that up.”

But with advertising on the wane, the paper faced a dilemma — especially when the COVID-19 pandemic hit, wiping out the Eagle’s nascent events business. Just before COVID, the paper raised four times the $10,000 it asked for in order to hire a Report for America corps member to cover the Statehouse. With that in mind as “proof of concept,” the Eagle set about looking for a more comprehensive way of seeking donations to bolster its news coverage.

What it hit upon was the Berkshire Eagle Local Journalism Fund, in partnership with the Berkshire Taconic Community Foundation. The nonprofit foundation, Rutberg explained, accepts donations to help the Eagle pay for coverage of education, health, economic development, and arts and culture. The Eagle held back from a public campaign during COVID, with Rutberg saying he thought that would be “impolitic” given that the pandemic had forced the paper to cut back the number of days it appears in print (from seven to five).

Last November, though, the Eagle launched its first public drive, raising nearly $80,000 from the community as well as a major gift of $150,000. The Eagle is planning a second public drive this October and has established an endowment fund, as well, although Rutberg said that’s gotten off to a slow start.

Following several cutbacks during COVID, the Eagle is expanding, Rutberg said. Though print circulation continues to shrink, paid digital circulation has risen from 2,700 pre-COVID to about 7,200 today. An arts reporter was hired recently, and the Eagle has started a quarterly magazine — The B.

Some of the largest for-profit papers in the country, including The New York Times and The Boston Globe, accept grant money to cover certain beats or publish journalism produced by nonprofits like ProPublica. The Philadelphia Inquirer, a for-profit, is owned by a nonprofit, the Lenfest Institute, which helps pay for coverage at the Inquirer and other news outlets.

What makes smaller for-profits like the Eagle unique is that they’re making use of nonprofit money to help pay for their journalism on an ongoing basis and not just for a few narrowly defined beats. After all, the four areas Rutberg identified comprise a substantial part of his paper’s coverage.

Nonprofit journalism has emerged as a leading solution to the local news crisis. But it’s important for there to be a viable for-profit alternative as well — even if they are bolstered in part by nonprofit funding.

A new report finds that content farms are loading up on AI. Will local news be next?

Meet your new reporting staff. Photo (cc) 2023 by Dan Kennedy.

By Dan Kennedy

A recent report by NewsGuard, a project that evaluates news organizations for reliability and transparency, found that clickbait generated by artificial intelligence is on the rise. McKenzie Sadeghi and Lorenzo Arvanitis write:

NewsGuard has identified 49 news and information sites that appear to be almost entirely written by artificial intelligence software. A new generation of content farms is on the way.

The report didn’t specifically identify any local news websites that are using AI to write low-quality stories aimed at getting clicks and programmatic advertising. Perhaps non-local stories about health, entertainment and tech, to name three of the topics for which content farms are using AI, more readily fly under the radar. If you’re going to use AI to produce articles about the local tax rate or the women’s track team, you’re going to get caught pretty quickly when the results prove to be wrong. Still, the use of AI to produce some forms of local news, such as routine articles about real-estate transactions, is not new.

According to the NewsGuard report, there doesn’t seem to be a concerted effort yet to use AI in order to produce deliberately false stories, although there have been a few examples, including a celebrity death site that claimed President Biden had “passed away peacefully in his sleep.”

Call this Pink Slime 3.0. Version 1.0 was low-tech compared to what’s available today. Back in 2012, the public radio program “This American Life” found that a company called Journatic (pronounced “joor-NAT-ik,” though I always thought it should be “JOOR-nuh-tik”) was producing local content for newspapers using grossly underpaid, out-of-town reporters — including cheap Filipino workers who wrote articles under fake bylines.

Pink Slime 2.0, of more recent vintage, consists of hundreds of websites launched to exploit the decline of local news. Under such banners as “North Boston News” (!), these sites purport to offer community journalism but are actually a cover for political propaganda. Nearly all of them serve right-wing interests, thought there were a few on the left as well.

Pink Slime 3.0 threatens to become more insidious as AI continues to improve. As Seth Smalley wrote for Poynter Online, this is “pink slime on steroids.”

Of course, AI could prove to be a boon for local news, as Sebastian Grace wrote last week for What Works. By eliminating repetitive drudge work, AI can free journalists to produce high-value stories that really matter.

Still, bottom-feeders like CNET — not exactly a content farm, but not much better than that, either — have already been caught publishing error-laden stories with AI. You can only imagine what sort of advice these content farms are going to give people about dealing with their medical problems.

OpenAI, which likes to portray itself as a responsible player in discussions about the future of AI, would not respond to NewsGuard’s inquiries. Neither would Facebook, which is amplifying AI-generated content.

The only thing we can be sure of is that a new, more insidious version of pink slime is coming to a website near you — if it hasn’t already.

Pioneering digital publisher Howard Owens tells us about a new idea for raising revenues

Howard Owens. Photo by Don Walker and used by permission.

On our new podcast, Dan and Ellen talk with Howard Owens, the publisher of The Batavian, a digital news organization in Genesee County, New York, way out near Buffalo. When Dan first met Howard, he was the director of digital publishing for GateHouse Media, which later morphed into Gannett. Howard launched The Batavian for GateHouse in 2008. In 2009, GateHouse eliminated Howard’s job, but they let him take The Batavian with him, and he’s been at it ever since.

The Batavian’s website is loaded with well over 100 ads, reflecting his belief that ads should be put right in front of the reader, not rotated in and out. He’s also got an innovative idea to raise money from his readers while keeping The Batavian free, which we’ll ask him about during our conversation with him.

Dan and Ellen are also joined by Sebastian Grace, who just received his degree in journalism and political science from Northeastern. Everyone in journalism is freaking out about ChatGPT and other players in the new generation of artificial intelligence. Seb wrote a really smart piece, which is up on the What Works website, assuring us all that we shouldn’t worry — that AI is a tool that can allow journalists to work smarter.

Ellen has a Quick Take on Mississippi Today, which won a Pulitzer Prize for Local Reporting for stories that revealed how a former Mississippi governor used his office to steer millions of state welfare dollars to benefit family and friends. Including NFL quarterback Brett Favre! We interviewed Mary Margaret White, the CEO of Mississippi today, on this podcast in November 2022. And reporter Anna Wolfe has a great podcast about her prize-winning series.

Dan observes that journalism these days is often depicted as deep blue — something that liberals and progressives may pay attention to, but that conservatives and especially Trump supporters dismiss as fake news. But Steve Waldman, the head of the Rebuild Local News coalition, says it’s not that simple, and that the local news crisis is harming conservatives even more than it is liberals.

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

Harnessed properly, AI could prove to be a boon for the future of local news

Image via Wikimedia Commons

By Sebastian Grace

There’s no need to panic about AI in journalism. ChatGPT told me so.

When I asked OpenAI’s language model whether artificial intelligence will replace journalists in the future, the answer went something like this: It’s unlikely because of humans’ “unique set of skills,” including “critical thinking” and the ability to “conduct interviews.” Well said, robot. I agree. But it’s not just unlikely. It’s impossible.

Arijit Sen, a computational journalist at The Dallas Morning News and an AI Accountability Fellow at the Pulitzer Center, believes that AI will bolster, not debilitate, the craft, improving an industry in desperate need of revitalization.

Listen to Sebastian Grace talk about this story on the “What Works” podcast.

“Hopefully, we can educate the higher-ups of news conglomerates, and they can realize it will only make the existing journalists work a lot better,” Sen said. “There’s no need to eliminate a ton of jobs because this will be a net economic win, and we’ll get more in-depth coverage that our community relies on. There’s reason for optimism.”

In the current furor, fueled by a panic born from misunderstanding, many talking heads are envisioning tumbleweed blowing through even more newsrooms than is already the case. Given the context, such as the dystopian reporting in The New York Times of Kevin Roose’s conversations with “Sydney,” Microsoft’s AI chatbot for Bing, and the Future of Life Institute’s open letter from tech bigwigs, it remains critical to explain how fear of an AI-impacted future for journalism is unjustified. The doom-mongering fails to recognize that the future of AI in journalism is a new and exciting frontier for reporting. Continue reading “Harnessed properly, AI could prove to be a boon for the future of local news”

At The Batavian, an innovative paywall gives subscribers a four-hour head start

Photo (cc) 2009 by Dan Kennedy

By Dan Kennedy

Now, here’s an interesting idea. The Batavian, a for-profit digital news outlet located in Genesee County, in western New York, has begun charging readers who want to see stories as soon as they’re posted. Others have to wait four hours.

In a press release posted by the trade publication Editor & Publisher, Howard Owens, who has led The Batavian since its founding nearly 15 years ago, explained that the website has begun charging $8 a month, or $80 a year, for subscribers who don’t want to put up with the four-hour delay. He calls it an “Early Access Pass,” and he writes:

I’m not aware of any other news publication using a similar reader-revenue model. For 15 years, our news site has been supported by more than 150 locally owned businesses, and we had an obligation to our fellow small business owners to ensure The Batavian remains the first stop in our community for local news. A paywall like many newspaper sites erect would kill site traffic, but with this model, we anticipate our program will keep our market-dominating traffic numbers high.

In a post at The Batavian, Owens says that the Early Access Pass is off to a fast start. He quotes one couple who told him: “We believe that being connected to local news is important for a healthy community. Knowing what’s happening in our own backyards helps raise awareness of events that we can have an effect on. We appreciate having an unbiased news source, and that is still free for our neighbors who may frequently face difficult financial choices.”

The Batavian has been an innovative project since its founding, and I reported on it for my 2013 book “The Wired City.” Owens launched the site as a pilot project for GateHouse Media in 2008, when he was the chain’s head of digital publishing. After GateHouse eliminated his position the following year, he took The Batavian with him and has been at it ever since. (GateHouse, as you know, merged with Gannett in 2019 and took its name.)

You’ll be able to hear Owens talk about The Batavian on an upcoming episode of the “What Works” podcast.

Lara Salahi tells us how student journalists can help ease the local news crisis

Lara Salahi

On the latest “What Works” podcast, Dan talks with Lara Salahi, an associate professor of journalism at Endicott College, where she teaches a range of courses, from feature writing to digital journalism. She has also been a digital producer for NBC Universal and a field producer for ABC News. The main topic of their conversation is about how students journalists can help ease the local news crisis — and a project she’s run with her students at Endicott.

Salahi has also done some consulting and writing on science and health projects. She was executive producer on a podcast called Track the Vax, which ran during the height of the pandemic. And she collaborated with Pardis Sabeti, a systems biologist and Harvard professor who researches infectious diseases like Ebola and Lassa virus. They wrote a book together in 2018 that is still relevant called “Outbreak Culture: The Ebola Crisis and the Next Epidemic.” They updated the paperback with a new preface and epilogue in 2021 to reflect on the COVID-19 outbreak, and the lessons learned from past epidemics. 

In Quick Takes, there’s so much going on that Dan discusses three developments. One involves the future ownership of the Portland Press Herald in Maine as well as its sister papers. The other is about a dramatic, unexpected development in hyperlocal news in New Jersey. The third involves some very good news for a daily paper in central Pennsylvania.

Dan and our Northeastern University colleague Meg Heckman pay tribute to a legendary journalist — Mike Pride, the retired editor of the Concord Monitor in New Hampshire and the former administrator of the Pulitzer Prize. Mike died on April 24 in Florida of a blood disorder. He was 76, and left his imprint on journalism in many ways. Meg worked at the Concord Monitor for more than 10 years.

Ellen was out of pocket for this podcast episode but did the sound editing and post-production. She’ll return next week.

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

Correction: An earlier version of this post misspelled Salahi’s first name.