Losing the News

A report from PEN America:

As local news outlets are gutted and shuttered, reporters laid off, publication schedules cut, and resources tightened across the country, Losing the News: The Decimation of Local News and the Search for Solutions sounds the alarm about the existential threat facing local watchdog journalism and proposes big-picture solutions for its revitalization.

Key conclusions:

•  As local journalism declines, government officials conduct themselves with less integrity, efficiency, and effectiveness and corporate malfeasance goes unchecked. With the loss of local news, citizens are: less likely to vote, less politically informed, and less likely to run for office.
• With the shift to digital, the business model for for-profit local journalism has collapsed, as circulation patterns have been upended and tech giants, notably the digital duopoly of Google and Facebook, have siphoned the majority of advertising revenue for content paid for and produced by news outlets.
• Local newspapers, TV stations, and radio stations are being bought and consolidated by hedge funds and media conglomerates and often subjected to relentless cost cutting—leading to coverage that is more national, less diverse, and, in some cases, more politically polarized.
• Newspapers have been hit the hardest, losing over $35 billion in ad revenue and 47 percent of newsroom staff over the past 15 years. Over 1,800 newspapers have closed, leaving more than three million people with no newspaper at all, and more than at least a thousand have become “ghost newspapers,” with little original reporting.
• Because newspapers still provide the majority of original local reporting in communities, their evisceration robs the American public of trusted sources of critical information about health, education, elections, and other pressing local issues.
• Many of the communities traditionally underserved by legacy local media—communities of color, low-income communities, and communities in rural areas—are those most affected by its decline. Finding meaningful, scalable solutions to the local news crisis presents an opportunity to revamp the industry to better represent, reflect, and serve all Americans.
• Across the country, existing and emerging outlets are building out new revenue streams, experimenting with digital-first and nonprofit models, and collaborating rather than competing to better serve communities’ pressing information needs. But in the face of market failure, adaptation and innovation alone cannot address the crisis at the needed scale.
• Philanthropic funding must expand dramatically to make a dent at the local level. Only a small fraction of philanthropic funding for journalism supports local news, and that funding is concentrated on the coasts and a handful of other states and often bypasses smaller and midsize outlets, as well as ethnic- or minority-led ones.
• Legislators and regulators must ensure that technology companies fairly compensate local outlets for the journalism they produce, which including levying an ad revenue tax on platforms like Facebook and Google to fund local watchdog reporting.
• The Federal Communications Commission must roll back recent decisions that enable media consolidation and cost-cutting and clarify and enforce the requirement that media broadcasters produce programming that serves the public interest.
• Given the scope and scale of the problem, a solution is unlikely without dramatically expanding public funding for local journalism, through either reform and expansion of the Corporation for Public Broadcasting or the creation of a new national endowment for journalism. PEN America is calling for a new congressional commission—a Commission on Public Support for Local News—to assess the viability of these options and recommend a path forward.