Could These Schemes Save The American Newspaper Industry?
(ANALYSIS) A thumbsucker on the news business could review all those disheartening statistics about dying dailies and weeklies, declining ad and circulation income and shrinking newsroom staffs — all of which have escalated since the 21st century dawned.
Instead, let’s ponder how things could be turned around, focusing on two storied American newspapers that face the dangers so typical of our era.
The Charlotte Observer of North Carolina, whose predecessor dates back 155 years, evolved into a major voice of the “New South.” Its five Pulitzer Prizes include the prestigious public service laurel in 1988 for pursuing misuse of donations to the PTL television ministry “in the face of a massive campaign by PTL to discredit the newspaper.”
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The Salt Lake Tribune was founded in Utah 153 years ago to compete with the older Deseret News, then and now owned by The Church of Jesus Christ of Latter-day Saints. Its official history recounts “raucous duels” with the church early on, which evolved into a spirit of independence and what it calls “community-oriented watchdog journalism” that has won two Pulitzers.
Both situations raise the prospect of returning ownership from what a Tribune report calls “evil hedge funds” to local ownership, with an emphasis on original journalism and community service, and a conviction that “legacy” newspapers can work financially. The struggling Observer, meanwhile, burst into the media news on Sept. 18 in highly unusual fashion. Sales of media companies are usually conducted in hush-hush negotiations mediated by investment banks. But Charlotte media entrepreneur Ted Williams (illustrious name!), a former digital marketing executive with the Observer, took to the website of his “Tiny Money” investment newsletter with a public offer to buy the newspaper for $5 million.
Chatham Asset Management owns the Observer due to the McClatchy chain’s bankruptcy filing. The $5 million would be the reported price Williams was paid for selling his Charlotte Agenda news site to Axios. He extended his concept to 30 cities and sold it for $500 million.
The bold businessman calculates that he won’t get rich from newspapering but can return this currently “distressed asset” to reasonable profits and sustainability.
“Media is simple,” he told The Wall Street Journal. “A lot of it’s execution.”
Williams’ announcement offered a game plan for how a turnaround would work. For starters, his Observer would be an online news and feature site, with perhaps the traditional print edition on Sunday. That might include a “luxury magazine,” which has helped The New York Times and Wall Street Journal bottom lines. He thinks a staff of 75 with a $10.25 million payroll is doable.
He’d establish a metered paywall for access with a variety of both paid and free related products. He figures 50,000 subscribers (compared with the current 10,000 for print circulation yielding $6 million a year is reasonable and would add $1.5 million paid by supporters who want to perpetuate “civic minded journalism.” And he hopes to earn $6 million from advertising.
Those estimates “seem reasonable, not wishful thinking,” he claimed.
Depending on how things evolve, he’s “open to” shifting the company into nonprofit status. Which brings us to The Salt Lake Tribune saga as the nation’s first major metropolitan “legacy” daily to turn nonprofit with IRS approval, in 2019. The 2016 purchase by businessman Paul Huntsman had ended ownership by Alden Global Capital. The Tribune is now run by an 11-member board of community volunteers. Huntsman stepped down as board chair in in February and is not currently funding the operation.
How is that going? The annual report issued July 25 and written by data columnist and sports reporter Andy Larsen, is upbeat.
“Honestly, The Tribune is in pretty good shape” and “actually doing well financially” with 2023 revenue reaching $15.3 million. There’ve been no layoffs since 2018, and the news staff has grown by about 10% since then. Notably, the paper is committed to an ongoing print edition while growing online readership.
Nonprofit 501(c)(3) status adds donor contributions to the traditional revenue streams of circulation and advertising. The 2023 total was $3.3 million, and $3.8 million is projected for 2024, from individual supporters, charity grant-makers and businesses. Those who pledge $1,000 a year join the growing First Amendment Society and get exclusive programs.
Print subscription income (at a thrifty $8 per month) at $2.6 million is a bit larger than the $2.2 million from digital subscribers, but the latter is likely to become larger fairly soon. The website reported 2.18 million users per month last year. The paper raised money to provide election coverage online for free and has the goal of eventually ending the digital paywall which kicks in after three free items per month. A young newsletter has 88,000 subscribers. Advertising brings in $5.2 million, but this whole operation is being reorganized and outsourced.
At the moment, the Tribune has 60 news staffers and is hiring for two open slots. The median salary is $66,539. As finances allow, the paper wants to increase that number.
Another new initiative is the Utah News Collaborative, an alliance of 12 news media statewide that share stories and information. And journalists are beginning to organize a union, the Salt Lake News Guild.
Cost-cutting measures include a pending move to offices with lower rent, and a switch from The Associated Press to The New York Times wire for savings of $110,000 a year.
Religion Unplugged readers will be especially interested in this from the report.
“Some people complain about the amount of coverage” of the LDS Church, a powerful institution in Utah culture that continually makes news. Coverage “just makes fiscal sense” as a lure for many subscribers. The annual report rightly takes pride in the religion reporting of award-winning veteran Peggy Fletcher Stack and colleague Tamarra Kemsley. The importance of their work is signaled by the assignment of Senior Managing Editor Dave Noyce to oversee the beat.
Final note: New thinking and financial stability are encouraging, but like other media, American newspapers over the years have suffered sagging trust from their audiences, particularly from conservatives and Republicans — a topic too complex to develop here.
Richard N. Ostling was a longtime religion writer with The Associated Press and with Time magazine, where he produced 23 cover stories, as well as a Time senior correspondent providing field reportage for dozens of major articles. He has interviewed such personalities as Billy Graham, the Dalai Lama, Mother Teresa and Joseph Cardinal Ratzinger (later Pope Benedict XVI); ranking rabbis and Muslim leaders; and authorities on other faiths; as well as numerous ordinary believers. He writes a bi-weekly column for Religion Unplugged.