News

People who read newspapers, either in print or digitally, tend to be regular voters and are more likely to be civically engaged. That’s good for everyone. Finally, the bill would provide a nonrefundable tax credit to small- to medium-sized businesses that advertise in local newspapers, print or digitally, or on local radio and television stations.
Over the past few years, the newspaper industry has been slowly acquired by deep-pocketed financial companies that believe they can cut costs, shift to digital distribution and create better returns. Now, as coronavirus-induced layoffs mount at local newspapers, journalists and industry observers fear that the pandemic could pave the way for further consolidation.
Hedge-fund ownership is one of, if not the, worst developments that have occurred for newspapers. These companies don’t care about journalism. They care about strip-mining what’s left for whatever profits can be squeezed, not with an eye to a sustainable future but with an eye toward next quarter’s balance sheet.
Newspapers and mayors aren’t always friendly. If journalists aren’t prying into the inner workings of City Hall, they aren’t doing their jobs. Tension needn’t breed animosity, though, and a couple of big-city mayors went to bat for their local newspapers last month.
“One of the biggest problems we have in journalism right now, is hedge funds are bleeding newsrooms dry,” said Jon Schleuss, president of the News Guild International, the union that represents reporters at The Sun and other papers. The funds treat “newspapers and news publications as distressed assets,” he said.
The local-news losses are startling: As I write in my new book, Ghosting the News: Local Journalism and the Crisis of American Democracy, in the past 15 years, more than 2,100 local newspapers have gone out of business, according to the journalism scholar Penny Muse Abernathy at the University of North Carolina.
We media people know all too well that many local news sources are deeply troubled, financially, but most Americans do not know. And most Americans aren’t accustomed to paying for local news. So that’s a real problem to be overcome.
This kind of journalism—local papers that are rooted in communities—is disappearing, and the places most at risk of losing their local news are places where a lot of conservatives happen to live. COVID-19 has wrought havoc on newsrooms, and massive layoffs continue to occur at newspapers across the country. But even before the pandemic, the crisis in local journalism was well established.