Local News’ Transition to Paid Content In the Context of Layoffs, Mergers and Bankruptcies I

The newsrooms have embraced a commercial mindset that supports the adoption of new editorial processes and roles to enhance digital revenues, including strategies for scheduled content, quantifying attention and engagement, breaking online news, producing in-depth features, developing new products such as podcasts and newsletters, collaborating between editorial and commercial departments, and sharing content among multiple publisher holdings.

This emphasis on relationship-building has spurred changes to these organizations’ platform strategies, particularly in regard to Facebook, which remains a significant traffic-driver. Just as Facebook as a company has shifted its focus from public posts to groups and private messaging, the newspapers have scaled back their reliance on the platform for achieving algorithmic reach and instead use it strategically to promote subscriptions, connect with targeted groups, and reach new audiences.

Overall, the editors and managers interviewed for this report are optimistic about the potential of payment-driven strategies for maximizing resources, and many are seeing gradual increases in their digital revenues. They also expressed concern about their ability to continue to innovate their digital offerings, retain newsroom talent, and maintain and attract readers who recognize the value of supporting high-quality local news.

Follow-up interviews in August 2020 reveal that these challenges have been enhanced by the COVID-19 pandemic. Although many of the news organizations initially saw unprecedented online traffic as audiences sought out local information about testing, infection rates, and closures, they also experienced sharp declines in advertising, event revenues, and print deliveries. Some organizations also faced furloughs, layoffs, and closures. Even so, the need for accurate, credible local information persists, and these outlets remain committed to producing and reinforcing the value of local news.

Subjects

The report is based on 20 interviews with managers and editors at local and regional newspapers in Finland, France, Germany, and the UK, conducted largely in person between December 2019 and March 2020. The countries selected represent different media systems and the chosen newspapers operate according to different ownership models. Although two similarly sized newspapers in each country were chosen, the sample as a whole reflects a range of circulation rates, newsroom sizes, and parent-company assets. Therefore, the challenges and opportunities these news organizations face do not necessarily reflect the realities of all local and regional newspapers.