Tuesday, May 5, 2009

Future of online news may be 'hyperlocal'

Story Highlights

  • As newspapers hemorrhage writers, "hyperlocal" Web sites try to fill the void
  • The sites tend to focus online on local and community issues
  • Observers say those topics have been ignored by big media companies
  • The sites are seeking new funding models; about 800 have started since 2004
By John D. Sutter
CNN

(CNN) -- On a recent morning, when many newspapers and news sites were buzzing about swine flu, voiceofsandiego.org wrote instead about a local science professor and his quest to understand the beginning of the universe.

The swine flu story was nowhere to be found.

To some news junkies, it may seem like the nonprofit news site missed the big story of the day. But this intentional omission fits right in with the independent publication's values.

It also indicates what the future of local news may hold.

"We don't cover anything unless it's squarely about San Diego, even national trend stories and stuff like that, we tend to steer away from," said Andy Donohue, the outlet's editor.

"Especially the way things are going right now on the Internet, you've got to be really focused on doing something really well -- and if you try to spread yourself too thin, you're not doing anything well."

With many newspapers ailing, there's been a steady drumbeat of layoffs at major news organizations -- nearly 25,000 jobs have been lost at papers since 2008, according to Paper Cuts, a blog that tracks the layoffs.

But a relatively new crop of "hyperlocal" news sites is growing into the void left by failing news organizations. See how the Web is going "hyperlocal" »

Most of the hyperlocal sites focus exclusively on a community in a tight geographic area. Some are trying to find new ways to fund the news, since nearly all online information is free. They're also experimenting with unconventional ways of gathering the news: Several nonprofit news sites publish reports from volunteer reporters who are active in the neighborhoods they cover.

Other sites, such as EveryBlock.com, aggregate news on a block-by-block basis. EveryBlock.com pulls in government documents -- health inspections, building permits and crime reports -- as well as news articles and photos from sites such as Flickr to make news feeds with an extreme local focus.

And, with mixed success, some former newspaper reporters have banded together to create new, online publications. For example, some former employees of the Seattle Post-Intelligencer, which ceased print publication, formed the Seattle PostGlobe online.

Generally, the people who run hyperlocal Web sites say they are optimistic about the future of the news business. They say they won't be able to replace all that's being lost as large news companies crumble but say they are excited about the fact that they're able to offer something new -- at least for the moment.

It is crucial for people to try out new ways to tell and fund stories, said David Cohn, founder of Spot.Us, a San Francisco, California, site where visitors fund specific investigative story pitches.

"I am optimistic about the future of journalism provided that we have lots and lots of different startups," he said. "I think what journalism needs is 10,000 different startups." Read more about Spot.Us

Since 2004, when trouble in the news industry started to show, at least 800 community news Web sites have popped up, according to Jan Schaffer, executive director of J-Lab: The Institute for Interactive Journalism. The sites often do a better job at covering community news than large newspapers did, even before the papers started to collapse, she said.

Jane McDonnell, executive director of the Online News Association, said the hyperlocal movement places emphasis on community news that's written by volunteers who usually are entrenched in their neighborhoods.

The shift "means that there's less journalistic oversight over what is being disseminated and distributed and created," she said. "That raises all the natural questions about how valuable the news is going to be -- how credible it's going to be. I kind of think that argument is moot at this point because it's happening."

McDonnell said it's important for news consumers these days to be savvy so they can spot conflicts of interest and assess the reliability of what they're reading.

Some nonprofit news sites train their volunteers so they have a basic understanding of how to get the facts right and how to report fairly on controversial issues before they publish stories.

ChiTownDailyNews.org in Illinois employs four journalists but is in the process of training 350 neighborhood volunteers, said Geoff Dougherty, the publication's editor. Because they're embedded in the communities they write about, they find news the mainstream press would never hear about, he said. In one example, a volunteer reporter broke news of police brutality.

Mia Boyd, another volunteer for the site, said she found the training valuable. It will help her to analyze the west side of Chicago and the neighborhood of Hyde Park, where she plans to write about mental health and criminal justice issues.

Funding is a big question mark for the hyperlocal movement.

Writing in The Nation, John Nichols and Robert W. McChesney say these efforts are "mere triage strategies" that won't work in the long term.

"They are not cures; in fact, if there is a risk in them, it is that they might briefly discourage the needed reshaping of ownership models that are destined to fail," they write, advocating instead indirect government grants to fund the news.

Mainstream news organizations largely rely on advertising revenue. Hyperlocal sites tend to get a chunk of money from nonprofit organizations, some revenue from ads and some money from readers.

Others are trying entirely new approaches.

Spot.Us, for example, lets the public decide what stories are worth funding. The result is that paid journalists are more responsible to their audience, Cohn said.

Founders of hyperlocal sites say they're trying to serve a civic purpose.

"I think there is a bunch of media people going, 'Oh the world's collapsing.' And as much as that's true, [news is] not going to go away, it's just going to come into a new form," said Jason Barnett, executive director of TheUpTake.org, a site that largely covers Minnesota politics.

"There are more opportunities now for entrepreneurs to figure out a system. ... It's going to be tough but, in general, news is vital to our democracy. If it dies, so does the democracy."

All AboutNewspapersInternet


Find this article at:
http://www.cnn.com/2009/TECH/05/01/future.online.news.hyperlocal/index.html

Saturday, May 2, 2009

Robert McChesney on “The Death and Life of Great American Newspapers”


The New York Times and Washington Post have become the latest newspapers to announce plans to downsize their staffs. As papers across the country continue to fold or downsize, policy officials and experts are contemplating a series of proposals to help newspapers stay afloat. On Capitol Hill, Democratic Senator Benjamin Cardin of Maryland has introduced the Newspaper Revitalization Act. Meanwhile, in an article in The Nation magazine titled “The Death and Life of Great American Newspapers,” media activists Robert McChesney and John Nichols are proposing a multi-part journalism economic stimulus package.

Guest:

Robert McChesney, Co-founder of Free Press. Professor at the University of Illinois at Urbana-Champaign. His article “The Death and Life of Great American Newspapers” appears in The Nation magazine.

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AMY GOODMAN: We turn now to a major crisis, the crisis of newspapers in this country. Juan?

JUAN GONZALEZ: Well, the New York Times and Washington Post have become the latest newspapers to announce plans to downsize their staffs. On Thursday, the New York Times Company said it will lay off 100 people, about five percent of its staff. In addition, the Times is temporarily cutting the pay of its non-union workers by five percent in return for ten days leave. The layoffs and salary cuts will affect employees at both the New York Times and Boston Globe.

Meanwhile, the Washington Post has announced it is offering employees another round of early retirement packages, or “buyouts.” Washington Post publisher Katharine Weymouth said the buyouts will, quote, “allow us to reduce costs and gain efficiency while we continue to restructure for the future.”

AMY GOODMAN: As papers across the country continue to fold or downsize, policy officials and experts are contemplating a series of proposals to help newspapers stay afloat.

On Capitol Hill, Democratic Senator Benjamin Cardin of Maryland has introduced the Newspaper Revitalization Act. He wants to make it easier for newspapers to become nonprofit publications.

Meanwhile, two longtime media activists from the group Free Press have proposed a bold solution: a government intervention to save American journalism. In an article in The Nation magazine, Robert McChesney and John Nichols propose a multi-part journalism economic stimulus package. They call for all Americans to receive an annual tax credit for the first $200 they spend on daily newspapers, free postage for many periodicals, government funding for high school and college journalism projects, and a large expansion of funding for public and community broadcasting.

To talk more about this, we’re joined by Bob McChesney from Madison, Wiscsonsin, co-founder of the media advocacy group Free Press and a professor at the University of Illinois at Urbana-Champaign.

We welcome you to Democracy Now!, Bob. Lay out the plan.

ROBERT McCHESNEY: Well, the plan simply is this. The commercial system of journalism, which has dominated in the United States for the past 150 years, is collapsing. It’s disintegrating. And we’re really left as a society with a basic option: are we going to have journalism or not?

If we’re going to simply sit around and hope that the business community, Wall Street and Madison Avenue, are going to come up with a way to rescue it and give us the sort of journalism we need, we’re not going to get there. It’s pretty clear that’s not going to happen.

And that means we’re going to have to turn to enlightened policymaking, direct and indirect government subsidies, to give us the resources to do journalism. And you already did a great job, Amy, of outlining the key elements of what we see as an emergency stimulus plan. And by “emergency stimulus,” we mean something that will get us through the crisis so we can have time, buy time, to come up with a coherent plan that we can eventually have multiple newsrooms of well-paid quality journalists covering their communities across the country that will segue into the digital era.

JUAN GONZALEZ: And, Bob, the particular part of the plan that would call for the funding of journalism programs in high schools and colleges, how might that work?

ROBERT McCHESNEY: Well, we haven’t done the details. We just wanted to throw out the idea. One of the great problems of journalism in the United States in the past three decades has been the decreasing involvement of young people. The average age of newspapers, the average age of viewers of television news programs, seems to almost go up a year every year. And part of the problem, I think, is that we’ve seen a real cutback in school newspapers and radio stations in the last three decades with the cutbacks in the public sector, and kids aren’t doing journalism as much anymore. If you don’t do it, you don’t really appreciate it and get involved in it. So we think one thing we ought to do is make sure every high school, every middle school, every college has a good, solid, adequate funding base to do a newspaper and also to do a radio station. The more kids get involved in creating journalism, the more they’re going to appreciate the good stuff.

AMY GOODMAN: Bob McChesney, we’re going to break, then we’re going to come back to you. He’s in Madison, Wisconsin, co-founder of freepress.net. After we speak with Bob, we’ll be going to freepress.org, not related at all, but that’s about the thirtieth anniversary of the meltdown at Three Mile Island. Bob McChesney is a professor at University of Illinois, Urbana-Champaign. His article, "The Death and Life of Great American Newspapers.” Stay with us.

[break]

AMY GOODMAN: Bob McChesney is our guest, co-founder of freepress.net, professor at University of Illinois. Juan, as we’re laying out Bob’s plan to save the American newspapers, I was thinking about your forthcoming book and how you chronicle the history of newspapers in this country.

JUAN GONZALEZ: Right. Well, Bob, I wanted to ask you about that, because you mentioned the subsidy plan that you saw are these credits helping also—or the plan by getting free postal delivery. I think most Americans are not aware, as you have pointed out in many of your books, about the importance of the Post Office in allowing the development of this rich newspaper tradition that we have in this country. But now we’re hearing the Post Office is claiming that it’s virtually bankrupt, that it keeps—has to keep raising prices and reducing service. So how would this impact, since you’re calling for free delivery of newspapers?

ROBERT McCHESNEY: Well, it would mean that the Post Office would return to its roots, in effect. You know, as you pointed out, Juan, the Post Office began in the United States primarily as a distribution arm for American newspapers. In the 1830s, 90 percent of the traffic of the US Post Office was newspapers or magazines. That was its basic job. Within cities, people got their newspapers by post. And the US government heavily subsidized it. The newspapers paid a very small fraction of the actual cost of distributing their wares, such that at one point only two or three percent of the revenues of the Post Office came from newspapers, but it was 90 percent of the traffic. That’s a pretty large subsidy.

And we’ve got to return to that point today. We’ve got to basically say to the Post Office that in the near term what we—any publication that has less than 20 percent advertising, so it’s primarily content-driven, it gets free postage, it gets complete free subsidy. That’s going to keep alive a whole raft of publications that are struggling now with very onerous costs on them.

And I want to point out, on all these subsidies—because I’m not trying to keep alive old media. I’m not trying to keep alive dying media at the expense of new media, additional media. The condition of all these subsidies, for student papers, for daily newspapers, for any publication, to get postal subsidies, for community and public broadcasting, is everything that’s done with these subsidies instantly goes online, is made free and accessible to everyone in the world who has access to it. So what we’re really doing is creating a rich vein of quality material that’s available to everyone, for the digital world, for the blogosphere to work with. So we should view it really as a step forward, not as trying to hold onto dying industries.

AMY GOODMAN: Bob McChesney, I also wanted to ask you about Senator Benjamin Cardin’s proposed Newspaper Revitalization Act. This is part of what the Maryland Democrat had to say from the floor of the Senate earlier this week.

    SEN. BENJAMIN CARDIN: As local papers are closing, we’re losing a valuable tradition in America, critically important to our communities, critically important to our democracy. So the legislation that I am filing today, the Newspaper Revitalization Act, offers an opportunity to save our local papers. It allows them to be nonprofits, to operate like we do in many of the other media areas, such as public radio, public television, to allow for the opportunity for nonprofits to operate our local community papers.

    Now, this is not going to be an option that a lot of papers will choose. They want to make profit. They want to do their commercial. They want to make endorsements of candidates. But for some papers, it will allow us to save local newspapers. The restriction on going nonprofit would be that you could not endorse candidates. You can certainly report on elections.


AMY GOODMAN: Maryland Democratic Senator Cardin. Robert McChesney, your response to his proposal? He’s introducing the Newspaper Revitalization Act.

ROBERT McCHESNEY: Well, I think it’s a historic moment, and I’m honored and delighted to see that Senator Cardin has done this. And I think what it points to, like my article, too, Amy and Juan, is that we’re in this historic crisis. I mean, a year ago, if I had written this article or Senator Cardin had introduced that legislation, we would have been put in the funny farm, we would have been dismissed as lunatics for even proposing it. I think six months or a year from now, this is going to look like very staid thinking, the way this crisis is going, because as Senator Cardin points out, in community after community, we don’t have any journalists left anymore. You know, and our system of governance can’t work if people don’t know anything about their community. It simply collapses. And that means the rule of law collapses, civil liberty collapses.

I think that Senator Cardin’s plan is a good start. It’s part of the solution. It’s not the entire solution. But I love the idea that people on Capitol Hill are waking up to this crisis and understand that doing nothing is not an option, if we want to have a constitutional form of government.

AMY GOODMAN: Bob McChesney, we want to thank you very much for being with us, co-founder of Free Press, professor at the University of Illinois, Urbana-Champaign. His article, “The Death and Life of Great American Newspapers,” appearing in The Nation magazine.

I’m looking forward to coming to Madison, Wisconsin at the beginning of May, the end of April, for the hundredth anniversary of The Progressive magazine—it should be quite a remarkable celebration, beginning with a concert with Ani DiFranco and Dar Williams and others—and beginning that tour this weekend, our Standing Up to the Madness tour around the country, looking at conditions around the country. I’ll be in Seattle on Sunday and Olympia, Washington, celebrating community media as we go, like KAOS Radio in Olympia, Washington. On Monday, to Washington, D.C., and then we’ll be going to Cambridge and to Amherst, to across Montana. In Tennessee, we’ll be celebrating WETS, a wonderful community public radio station there. We’ll be going through Florida. We’ll be going to Kansas City. We’ll be coming to Minneapolis and many places. Just check our website at democracynow.org. We’ll also be going throughout Ohio, to the University of Ohio. We’ll be going to Columbus. And Juan, that’s where we’re going right now to talk to our next guest.


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Tuesday, April 7, 2009

Collaboration the Key to Future of Investigative Journalism

Mark Glaser by Mark Glaser, April 5, 2009

BERKELEY -- The second day of the Logan Symposium at UC Berkeley is more of a half-day with one panel devoted to the future of investigative journalism and a brunch at the Frontline World offices near campus. Just like last year, I had trouble getting an Internet connection in the journalism school library so had to live-Twitter the panel and put up this blog post later. (You can see the earlier report on yesterday's sessions here.)

The panel was lively, and included a lot of optimism for the future of investigative journalism despite the business cratering for newspapers and their investigative journos. The panel was moderated by Lowell Bergman, and included David Fanning of PBS Frontline, Esther Kaplan of the Nation Institute, Bill Keller of the NY Times, Chuck Lewis at American University, Robert Rosenthan of the Center for Investigative Reporting, and Buzz Woolley, chairman of the board and primary funder of Voice of San Diego. The following are my notes from the panel.

rosenthal.jpg

Robert Rosenthal

Robert Rosenthal, CIR: Last year I said the business model for newspapers was toast. Now I believe that collaboration is going to be very important for profit and nonprofit journalism, it doesn't mean there won't be compeition. We will be at CIR getting money from Hewlett and Irvine foundation for local and regional reporting. In Sacramento there was 80 reporters and now there are only 20 reporters left. I met a lot of remarkable people here in California.

I met Buzz Woolley and we need more people like him. The Sandlers have done that with ProPublica. When we talk about collaboration, when I ran the Philly Inquirer we could put together big teams. Now with VoiceofSanDiego we can look at documents together, and that shows millions of dollars of funding that isn't accounted for in San Diego. So we show ourselves sharing data with other organizations so they can do the work. We're teaming with KQED as well.

We have to reach audiences the way people want to be reached. The technological advances are moving at a fast pace and I didn't think it would be as bloody as its been out in the marketplace. I'm quite optimistic about the future, and we're going to be hiring.

Bill Keller, NYT: The business model isn't toast but it is in the toaster. [laughter] I don't think investigative journalism will go away, and there is emerging media that will be partly profit, partly non-profit, partly collaborative, partly competitive, mainly online. There's ProPublica and it has ties to the mainstream media. My optimism has a caveat: transitions are messy. It's a great time to be 25 and get into journalism as long as you don't mind living near the poverty line and you don't mind about pension and health insurance, you are on the verge of something that's exciting as it was when I was 20 years old. The caveat is that there are a lot of people who are 50 who are talented and will be out of work which will be a major loss.

While the old is figuring out a new model and the new is starting out, there are a lot of stories that won't be told.

buzz woolley.jpg

Buzz Woolley

Buzz Woolley, funder of Voice of San Diego: My biggest nonprofit experience was in K-12 education. I had a totally different background than others on the panel, and I wanted to get better coverage of education and city issues, and the Union-Tribune wasn't even covering the city council meetings. If we dont' have good information, how do we run a civil society.

Blogs aren't edited very well, I like the newspaper. Because of my background in venture capitalist, I knew about creative destruction. People would come out with new technology and blow up other companies, that's what I was doing in the '80s and '90s. So how do we use this? We came up with one example, and I don't pretend to come here to tell all you experienced journalists how to do it. Now we are inundated with people asking us how we do it. I would like to set up a trade association and I would support it to disseminate information to people all around the country who are dealing with this as their newspapers are closing.

The theme of the conference seems to be collaboration and there's one aspect that hasn't been discussed. I only started working with news organizations but my take is that there's little collaboration within the organization. [laughter] I came in trying to solve a problem in San Diego and we hire the journalists, and they say, 'you're the business guy stay out of it.' I don't have an agenda and ask them to do anything liberal or conservative and I won't give any money to political campaigns. I finally got the guys running this to think of themselves as a team. I have a guy who's CEO and he spends time doing community outreach, and we're like a technology company trying to beat the big guys. We're all on the same team, and you need a lot of skills.

This is not a top-down organization even though I started it. I started it to have a community funded model.

Chuck Lewis, American University: We have a new entity that is the Investigation Workshop. We're doing traditional muckraking and doing it with mainstream news organizations. Wendell Cochran is working on this with me, we were looking at banks and their dealings with the FDIC. We have grad students working on this. The new models part, we have the I-Lab and are incubating new models and working on three projects. I'm now on 6 more boards this year than last year, many non-profits have called and have asked for advice.

We have a long tradition with non-profit journalism, the AP is a non-profit, NPR is non-profit, but investigative journalism doesn't have as long of a history, the Center for Public Integrity and ProPublica which started recently. New non-profits are springing up all over the U.S. -- the Wisconsin Center for Investigative Journalism, and are forming as we speak, in Boston, in Texas and Colorado and other places and they're all looking for advice. The university model is important. When NPR started they realized that public radio was mainly in universities, so there's a long history of collaboration.

Some are c(3)s some are stand-alone, some are at universities and some will be hybrids, and I'm particularly interested in hybrids. I predict there will be $40 million spent in non-profit journalism within a few years.

Esther Kaplan, The Nation Institute Investigative Fund: We started the fund because there was a lot of opinion online but not enough reporting. These are media outlets that have very different agendas than the big guns. Just in the last year, what we're doing has begun to shift. I feel like the social safety net for laid off journalists -- TARP assistance for media reporters. Of those 10,000+ laid off journalists, some will get hired by CIR, most will be freelancers so we want to provide backup helping people place their stories in places like Mother Jones, New York Review of Books, be that editor that can be a sounding board for writers.

left panel.jpg

Bill Keller, Chuck Lewis, David Fanning

We do help with FOIA, libel review, and capture that energy that new writers have and give them institutional support. As far as partnerships, they are in their infancy, and every partnership with media organizations takes a lot of work. We should consider a lot more, like joint investigation sites, shared technology for micro-financing.

One of the things I'm most concerned about is where is the farm team for investigative reporting. I came out of the alternative weeklies and small regional dailies. The opportunity to be in those places to learn your chops is very restricted now. I've become more preoccupied with mentoring young journalists and bring along young women and people of color who have the appetite for this stuff but don't have the place to learn the trade.

David Fanning, PBS Frontline: How is collaboration changing? I think partnerships have done lots of co-productions with Britain and Europe, but if they're set up with executives they work less than if they are between individuals who trust each other.

I want to say something about freelance journalists feeling lonely -- I feel lonely as well. I feel very separate from other PBS shows and NPR is very self-contained and doesn't play well with others. There are others like PRI that have been better about partnerships. Public TV is in a crisis because we are facing a disruptive moment because we have a shift from broadcasting to something new. Public Media 2.0 is coming and there's some real interesting changes coming. In the 21st century, would you create this collection of so many stations and licenses?

A few billion dollars here or there would make a huge difference in journalism. I was at the Aspen Institute at a gathering, and I was shocked to hear that everyone thought that the central attribute of public media should be journalism. The great difficulty is getting all these people to partner together. I propose we create a third space where we can work together, aggregating our assets in one place, that's a simple idea. You could aggregate beyond that, with other news organizations that aggregate cleverly around original content. But that isn't enough. That would just be a grab-bag.

fanning.jpg

David Fanning

My proposal is that you think very big with a new editorial entity, with foundation funding and public broadcasting money, and I think ProPublica is a model for that. If I look in that newsroom and see robust editorial coming out of that, I am very heartened and could see that being 4 or 5 stories a week. You take people who have taken the buyouts from the Washington Post or elsewhere, and say, 'come to this space and create a world-class journalism institute.' If you set that as a goal and produce first rate journalism and do it with a low bar, you can create a journalistic network pretty quickly. You can see the way Phil Balboni has done that with GlobalPost.

I think it would be game-changing for the other news outlets. I would love to work for and with an organization of that quality. I would like to see what it does to programs like the Newshour. I visited St. Louis public TV recently and they put the new St. Louis Pioneer into their space, and the radio station is moving into the same building. If you put that together in certain places where there are entrepreneurial skills, then the local communities will have a stake in it.

Q&A

Q: What's your reaction to what you're hearing, Bill Keller?

Keller: As far as public journalism space, mostly I'm a consumer and don't know the ins and outs of public broadcasting. On the larger theme of collaboration, we have collaborated before with Frontline and ProPublica and for a long time have worked with freelancers who bring us stuff. We suck them into the institution for the duration of the project. We will do more of that on an experimental basis.

I'm wary of us putting too much effort into working with others, and not putting enough resources in our own people at the Times. Competition does help people dig deeper and I'd hate to see people lose that edge in working together too much.

We've had projects recently that has the gestation period of a llama and a half. Obviously the downturn has affected our newsroom, we lost 100 people. The idea that you can do more with less is ridiculous. You try to give up what's least consequential for readers. Everyone at the Times newsroom is working harder and are spread thin.

We're not going to cut our foreign staff, we won't pull out of Baghdad. We did pull
out of New Jersey and are focused more on New York.

My question: What about conflicts of interest? Buzz, would you be OK with Voice of San Diego doing an investigative report about your finances? Would ProPublica be OK with doing an investigation into the Sandlers who funded them?

Buzz Woolley: They said I would be comfortable about an expose on my best friends. NPR interviewed me and asked me about it. How would I feel if they did a report on me? I would be fine with it.

Bergman: What about ProPublica, do they want to answer that?

Paul Steiger, ProPublica: We would report on them if we found anything worth reporting on, and we haven't found anything.

Herb Sandler: I'm happy they haven't done that, but as a board member I have no idea what stories they are working on.

Q from Tom Fuentes: Much has been said about the production of news, and how do you evaluate the impact of different media? Frontline is on TV and how is that different than what a newspaper puts out or blogs put out?

Fanning: It's obvious that in the digital space we get the big bang of the broadcast and can drive traffic to the website. We recently did a film on Hugo Chavez and there was an election after that, and we had 500,000 video views before the broadcast and 1.5 million after the broadcast. A Venezuelan TV station took our feed online and put it on the air and we got them to pay a small fee for it.

Q: How can you involve the audience more?

Lewis: We did a book called "Citizen Muckraking" in the '90s about people who did work on their own and dug up information. I'd like to do that in a bigger way. What Ft. Myers did about insurance payments, there was palpable anger and the paper could never have covered that story without the public working on it. That's the best example I've seen and it offers me immense hope.

Bergman: I think Joseph Pulitzer published all the public assessments in 1905, and caused a storm back then that was similar.

Q: What about the legal implications of doing collaborations?

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Lowell Bergman

Bergman: Last year after this panel we had a meeting with some lawyers, and we now have a committee of legal experts who are helping non-profits by doing pro bono reviews before publication. It's very complicated to deal with legal issues if you don't have a lead organization like the New York Times, it would be a long process for other organizations to deal with that. It will have to evolve over the next number of years. It's something that ABC and CBS and other legacy media have had to deal with for awhile...

Rhonda Schwartz, ABC: I didn't think of ourselves as "legacy media," it makes me feel so old...

Q: Should we take money taken from corruption cases and give it to news organizations to do investigative work?

Woolley: The more we stay away from government funding, the better. I wouldn't like us to be in a place where we get public funding.

Fanning: If you want to create public media, then you do have to get government funding, but it has to be de-politicized. The problem currently is that it is very politicized, and the U.S. chose that Germany and Japan had strong public broadcasting post-war, but it was orphaned in the U.S. because media companies didn't want to deal with the competition. And in the U.K. they have the strongest public broadcaster anywhere. I think you still have to get public funding in some way.

Rosenthal: I think it's a crucial question and the debate is heightening now and it's something we will have to sit down and discuss.

Q: Should we have standards set for journlism now?

Lewis: That's a tough question. Our tradition is to not have any standards. [laughter] We have resisted having the government accredit people, and we know there are a lot of people blogging and it's very hard to define who is a journalist. So it can occur, and some people get accreditation to cover Congress. Realistically it's not going to happen. Journalism schools were created a century ago because people said there has to be standards, but I didn't go to journalism school. I still think it comes down to consumers having multiple sources and finding the information they need.

Fanning: Editing is at the heart of what we do. Curating of stories with an editorial process does lend a good housekeeping stamp of approval for people moving across the ether for places they can trust.

Q: Journalists are good at storytelling, and I'm a post-graduate fellow and we're not very good at understanding technology and new business models. Are CIR and Buzz tapping the best minds in Silicon Valley and are thinking differently?

Rosenthal: We are doing that exactly. We know what we don't know, and we're in conversations with Google people and venture capitalists. These new models, what didn't work in newspapers is that the newsroom and business sides that didn't work together, they were adversaries. A key question for all of us is how we create sustainability. Especially here in the Bay Area, there's innovation everywhere, so we will pull in people from other places. Talking to people at Google is like talking to Martians, but they can optimize what we do.

Bergman: At CBS, the corporate side never came into the newsroom. Buzz, how can you break down that wall?

Woolley: The best organizations are the ones that collaborate the most across departments, and the ones that don't work well have a lot of dead wood in them, have systems that don't work well and the cost system is way out of whack. What happens in venture capitalism, IBM almost went broke in the '70s because all these young startups were more efficient. But to their credit, they made a switch and are more successful, but there are companies that didn't make that switch and disappeared.

My question is: Do you need to go bankrupt to start a new model? Are you General Motors?

Thursday, April 2, 2009

Consolidation won't save the media

Allowing a few big companies to swallow up local newspapers created journalism's problems. More of the same can't solve them

Last week, House speaker Nancy Pelosi, whose hometown San Francisco Chronicle is in trouble, asked attorney general Eric Holder to consider loosening antitrust laws to help out struggling newspapers by allowing more media mergers. Holder responded by saying he is open to revisiting the rules.

Pelosi's request sounds innocuous at first – after all, struggling newspapers seem to need all the help they can get. But opening the door to more media consolidation is not the cure for the crisis in journalism. More of this bad medicine will only weaken reporting and worsen the health of our democracy.

As a few big companies swallowed up more local media outlets, they gutted newsrooms. The Project for Excellence in Journalism reports that the industry lost 5,000 journalists last year and has slashed 16% of its news staff since 2001. Is it any surprise that fewer people are buying newspapers when reporters are being taken off their beats and bureaus are being shuttered?

But media consolidation hasn't been a disaster only for dedicated journalists or the public who rely on reporters to keep an eye on their leaders. It's also been bad for business.

Just a few years ago, the average profit margin for newspapers was over 20% – with some bringing in twice as much or more. But that did not satisfy the newspaper executives or Wall Street. Instead of investing in the quality of their products and innovating for the future, the big media companies have been obsessed with short-term gains. Instead of bolstering their news-gathering or adjusting to the new media landscape, companies like McClatchy, Tribune and Lee Enterprises used these astronomical profits to buy up other properties.

While federal regulators rubber-stamped these mega-mergers, the media giants took on massive amounts of debt. Even though newspapers themselves are still profitable, their corporate bosses are drowning in IOUs.

A recent Advertising Age article reported that McClatchy's newspapers earned a 21% profit margin last year. But struggling under the $2bn it owes after acquiring Knight Ridder in 2006, the company has slashed its work force by nearly a third in the past year. The Tribune Company earned a 5% profit margin in its newspaper division for the first three quarters of 2008, but it still declared bankruptcy in December.

Gannett's newspaper holdings earned an 18% profit margin last year, with some properties earning as much as 42.5%. Nevertheless, Gannett slashed 3,000 jobs and required employees to take a week-long furlough. The company is also expected to sell off or shut down the 139-year-old Tucson Citizen this week. Despite taking pay cuts, Gannett's top executives still received sizeable six-figure bonuses.

Of course, poor leadership and debt aren't the only problems facing the newspaper industry. Ad revenue has been down 23% across the industry in the past two years. Today, advertisers have cheaper options online to reach their target audiences, a major problem for newspapers relying on print advertising for 90% of their revenue. Even though more people are reading newspapers online than ever before, online advertising still makes up just a small percentage of a newspaper's earnings.

We can't put the Internet back in the bottle or restore newspapers' monopoly on local advertising. Instead, what we need to figure out is how to support news-gathering, investigative journalism and beat reporting in a world in which Walmart coupons and car-dealership ads will no longer cover the costs of bureaus in Baghdad or Boise.

But if the same handful of conglomerates now coming to Washington for handouts had been held in check earlier, many of these newspapers and their employees would stand a better chance of weathering the economic storm. And if regulators hadn't looked the other way as these deals went through, newsrooms would probably have 10 years left to experiment, adjust and adapt – instead of what feels like 10 minutes.

Green-lighting more consolidation will only serve to prop up a failing business model. It won't create any new jobs – in fact, more reporters are sure to be sacked. And it won't add any new voices to the marketplace of ideas. Letting Dean Singleton, who already owns multiple dailies throughout the Bay Area, put out the same cookie-cutter content under the Chronicle banner won't bring back readers or help the industry.

If Pelosi and Holder believe that newspapers are critical to our democracy and worth saving, then they have to explore real structural alternatives that give media ownership back to local communities; figure out short-term ways to fund serious reporting during the bumpy transition to the Internet; and look for changes in tax or bankruptcy policy that might encourage local, diverse and non-profit owners who'd be happy to see the 10 to 15% profit margins that are still the industry average.

How to support serious journalism and local coverage in the new media landscape is a complicated question that surely requires a menu of answers, forward-looking policy ideas and lots of experimentation.

But we know what won't work: the exact same policies that got us into this mess in the first place. Media consolidation is the problem, not the answer.


Tuesday, March 24, 2009

The Death and Life of Great American Newspapers


By John Nichols & Robert W. McChesney

This article appeared in the April 6, 2009 edition of The Nation.

March 18, 2009

John Nichols and Robert W. McChesney were the founders, with Josh Silver, of Free Press, which has launched a campaign to save the news. Their book, Saving Journalism: The Soul of Democracy, will be published by New Press in the fall.

 AVENGING ANGELS

AVENGING ANGELS

Communities across America are suffering through a crisis that could leave a dramatically diminished version of democracy in its wake. It is not the economic meltdown, although the crisis is related to the broader day of reckoning that appears to have arrived. The crisis of which we speak involves more than mere economics. Journalism is collapsing, and with it comes the most serious threat in our lifetimes to self-government and the rule of law as it has been understood here in the United States.

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After years of neglecting signs of trouble, elite opinion-makers have begun in recent months to recognize that things have gone horribly awry. Journals ranging from Time, The New Yorker, The Atlantic and The New Republic to the New York Times and the Los Angeles Times concur on the diagnosis: newspapers, as we have known them, are disintegrating and are possibly on the verge of extinction. Time's Walter Isaacson describes the situation as having "reached meltdown proportions" and concludes, "It is now possible to contemplate a time in the near future when major towns will no longer have a newspaper and when magazines and network news operations will employ no more than a handful of reporters." A newspaper industry that still employs roughly 50,000 journalists--the vast majority of the remaining practitioners of the craft--is teetering on the brink.

Blame has been laid first and foremost on the Internet, for luring away advertisers and readers, and on the economic meltdown, which has demolished revenues and hammered debt-laden media firms. But for all the ink spilled addressing the dire circumstance of the ink-stained wretch, the understanding of what we can do about the crisis has been woefully inadequate. Unless we rethink alternatives and reforms, the media will continue to flail until journalism is all but extinguished.

Let's begin with the crisis. In a nutshell, media corporations, after running journalism into the ground, have determined that news gathering and reporting are not profit-making propositions. So they're jumping ship. The country's great regional dailies--the Chicago Tribune, the Los Angeles Times, the Minneapolis Star Tribune, the Philadelphia Inquirer--are in bankruptcy. Denver's Rocky Mountain News recently closed down, ending daily newspaper competition in that city. The owners of the San Francisco Chronicle, reportedly losing $1 million a week, are threatening to shutter the paper, leaving a major city without a major daily newspaper. Big dailies in Seattle (the Times), Chicago (the Sun-Times) and Newark (the Star-Ledger) are reportedly near the point of folding, and smaller dailies like the Baltimore Examiner have already closed. The 101-year-old Christian Science Monitor, in recent years an essential source of international news and analysis, is folding its daily print edition. The Seattle Post-Intelligencer is scuttling its print edition and downsizing from a news staff of 165 to about twenty for its online-only incarnation. Whole newspaper chains--such as Lee Enterprises, the owner of large and medium-size publications that for decades have defined debates in Montana, Iowa and Wisconsin--are struggling as the value of stock shares falls below the price of a single daily paper. And the New York Times needed an emergency injection of hundreds of millions of dollars by Mexican billionaire Carlos Slim in order to stay afloat.

Those are the headlines. Arguably uglier is the death-by-small-cuts of newspapers that are still functioning. Layoffs of reporters and closings of bureaus mean that even if newspapers survive, they have precious few resources for actually doing journalism. Job cuts during the first months of this year--300 at the Los Angeles Times, 205 at the Miami Herald, 156 at the Atlanta Journal-Constitution, 150 at the Kansas City Star, 128 at the Sacramento Bee, 100 at the Providence Journal, 100 at the Hartford Courant, ninety at the San Diego Union-Tribune, thirty at the Wall Street Journal and on and on--suggest that this year will see far more positions eliminated than in 2008, when almost 16,000 were lost. Even Doonesbury's Rick Redfern has been laid off from his job at the Washington Post.

The toll is daunting. As former Washington Post executive editor Leonard Downie Jr. and Post associate editor Robert Kaiser have observed, "A great news organization is difficult to build and tragically easy to disassemble." That disassembling is now in full swing. As journalists are laid off and newspapers cut back or shut down, whole sectors of our civic life go dark. Newspapers that long ago closed their foreign bureaus and eliminated their crack investigative operations are shuttering at warp speed what remains of city hall, statehouse and Washington bureaus. The Cox chain, publisher of the Atlanta Journal-Constitution, the Austin American-Statesman and fifteen other papers, will padlock its DC bureau on April 1--a move that follows the closures of the respected Washington bureaus of Advance Publications (the Newark Star-Ledger, the Cleveland Plain Dealer and others); Copley Newspapers and its flagship San Diego Union-Tribune; as well as those of the once great regional dailies of Des Moines, Hartford, Houston, Pittsburgh, Salt Lake City, San Francisco and Toledo.

Mired in debt and facing massive losses, the managers of corporate newspaper firms seek to right the sinking ship by cutting costs, leading remaining newspaper readers to ask why they are bothering to pay for publications that are pale shadows of themselves. It is the daily newspaper death dance-cum- funeral march.

But it is not just newspapers that are in crisis; it is the institution of journalism itself. By any measure, journalism is missing from most commercial radio. TV news operations have become celebrity- and weather-obsessed "profit centers" rather than the journalistic icons of the Murrow and Cronkite eras. Cable channels "fill the gap" with numberless pundits and "business reporters," who got everything about the last decade wrong but now complain that the government doesn't know how to set things right. Cable news is defensible only because of the occasional newspaper reporter moonlighting as a talking head. But what happens when the last reporter stops collecting a newspaper paycheck and goes into PR or lobbying? She'll leave cable an empty vessel and take the public's right to know anything more than a rhetorical flourish with her.

The Internet and blogosphere, too, depend in large part on "old media" to do original journalism. Web links still refer readers mostly to stories that first appeared in print. Even in more optimistic scenarios, no one has a business model to sustain digital journalism beyond a small number of self-supporting services. The attempts of newspapers to shift their operations online have been commercial failures, as they trade old media dollars for new media pennies. We are enthusiastic about Wikipedia and the potential for collaborative efforts on the web; they can help democratize our media and politics. But they do not replace skilled journalists on the ground covering the events of the day and doing investigative reporting. Indeed, the Internet cannot achieve its revolutionary potential as a citizens' forum without such journalism.

So this is where we stand: much of local and state government, whole federal departments and agencies, American activities around the world, the world itself--vast areas of great public concern--are either neglected or on the verge of neglect. Politicians and administrators will work increasingly without independent scrutiny and without public accountability. We are entering historically uncharted territory in America, a country that from its founding has valued the press not merely as a watchdog but as the essential nurturer of an informed citizenry. The collapse of journalism and the democratic infrastructure it sustains is not a development that anyone, except perhaps corrupt politicians and the interests they serve, looks forward to. Such a crisis demands solutions equal to the task. So what are they?

Regrettably the loud discussion of the collapse of journalism has been far stronger in describing the symptoms than in providing remedies. With the frank acknowledgment that the old commercial system has failed and will not return, there has been a flurry of modest proposals to address the immodest crisis. These range from schemes to further consolidate news gathering at the local level to pleas for donations from news consumers and hopes that hard-pressed philanthropists and foundations will decide to go into the news business. And they range from ineffectual to improbable to undesirable. Walter Isaacson has proposed that newspapers come up with a plan to charge readers "micropayments" for online content. Even if such a system were practically possible, the last thing we should do is erect electronic walls that block the openness and democratic genius of the Internet.

Don't get us wrong. We are enthusiastic about many of the efforts to promote original journalism online, such as ProPublica, Talking Points Memo and the Huffington Post. We cheer on exciting local endeavors, such as MinnPost in the Twin Cities--a nonprofit, five-day-a-week online journal that covers Minnesota politics with support from major foundations, wealthy families and roughly 900 member-donors contributing $10 to $10,000. But even our friends at MinnPost acknowledge that their project is not filling the void in a metro area that still has two large, if struggling, daily newspapers. Just about every serious journalist involved in an online project will readily concede that even if these ventures pan out, we will still have a dreadfully undernourished journalism system with considerably less news gathering and reporting, especially at the local level.

For all their merits and flaws, these fixes are mere triage strategies. They are not cures; in fact, if there is a risk in them, it is that they might briefly discourage the needed reshaping of ownership models that are destined to fail.

The place to begin crafting solutions is with the understanding that the economic downturn did not cause the crisis in journalism; nor did the Internet. The economic collapse and Internet have greatly accentuated and accelerated a process that can be traced back to the 1970s, when corporate ownership and consolidation of newspapers took off. It was then that managers began to balance their books and to satisfy the demand from investors for ever-increasing returns by cutting journalists and shutting news bureaus. Go back and read a daily newspaper published in a medium-size American city in the 1960s, and you will be awed by the rich mix of international, national and local news coverage and by the frequency with which "outsiders"--civil rights campaigners, antiwar activists and consumer advocates like Ralph Nader--ended up on the front page.

As long ago as the late 1980s and early 1990s, prominent journalists and editors like Jim Squires were quitting the field in disgust at the contempt corporate management displayed toward journalism. Print advertising, which still accounts for the lion's share of newspaper revenue, declined gently as a percentage of all ad spending from 1950 to '90, as television grew in importance. Starting in 1990, well before the rise of the web as a competitor for ad dollars, newspaper ad revenues went into a sharp decline, from 26 percent of all media advertising that year to what will likely be around 10 percent this year.

Even before that decline, newspaper owners were choosing short-term profits over long-term viability. As far back as 1983, legendary reporter Ben Bagdikian warned publishers that if they continued to water down their journalism and replace it with (less expensive) fluff, they would undermine their raison d'être and fail to cultivate younger readers. But corporate newspaper owners abandoned any responsibility to maintain the franchise. When the Internet came along, newspapers were already heading due south.

We do not mean to suggest that '60s journalism was perfect or that we should aim to return there. Even then journalism suffered from a generally agreed-upon professional code that relied far too heavily on official sources to set the news agenda and decide the range of debate in our political culture. That weakness of journalism has been magnified in the era of corporate control, leaving us with a situation most commentators are loath to acknowledge: the quality of journalism in the United States today is dreadful.

Of course, there are still tremendous journalists doing outstanding work, but they battle a system increasingly pushing in the opposite direction. (That is why some of the most powerful statements about our current circumstances come in the form of books, like Naomi Klein's The Shock Doctrine; or documentaries, like Michael Moore's Bowling for Columbine; or beat reporting in magazines, like that of Jane Mayer and Seymour Hersh at The New Yorker.) The news media blew the coverage of the Iraq invasion, spoon-feeding us lies masquerading as fact-checked verities. They missed the past decade of corporate scandals. They cheered on the housing bubble and genuflected before the financial sector (and Gilded Age levels of wealth and inequality) as it blasted debt and speculation far beyond what the real economy could sustain. Today they do almost no investigation into where the trillions of public dollars being spent by the Federal Reserve and Treasury are going but spare not a moment to update us on the "Octomom." They trade in trivia and reduce everything to spin, even matters of life and death.

No wonder young people find mainstream journalism uninviting; it would almost be more frightening if they embraced what passes for news today. Older Americans have been giving up on old media too, if not as rapidly and thoroughly as the young. If we are going to address the crisis in journalism, we have to come up with solutions that provide us with hard-hitting reporting that monitors people in power, that engages all our people, not just the classes attractive to advertisers, and that seeks to draw all Americans into public life. Going backward is not an option; nor is it desirable. The old corporate media system choked on its own excess. We should not seek to restore or re-create it. We have to move forward to a system that creates a journalism far superior to that of the recent past.

We can do exactly that--but only if we recognize and embrace the necessity of government intervention. Only government can implement policies and subsidies to provide an institutional framework for quality journalism. We understand that this is a controversial position. When French President Nicolas Sarkozy recently engineered a $765 million bailout of French newspapers, free marketeers rushed to the barricades to declare, "No, no, not in the land of the free press." Conventional wisdom says that the founders intended the press to be entirely independent of the state, to preserve the integrity of the press. Bree Nordenson notes that when she informed famed journalist Tom Rosenstiel that her visionary 2007 Columbia Journalism Review article concerned the ways government could support the press, Rosenstiel "responded brusquely, 'Well, I'm not a big fan of government support.' I explained that I just wanted to put the possibility on the table. 'Well, I'd take it off the table,' he said."

We are sympathetic to that position. As writers, we have been routinely critical of government--Democratic and Republican--over the past three decades and antagonistic to those in power. Policies that would allow politicians to exercise even the slightest control over the news are, in our view, not only frightening but unacceptable. Fortunately, the rude calculus that says government intervention equals government control is inaccurate and does not reflect our past or present, or what enlightened policies and subsidies could entail.

Our founders never thought that freedom of the press would belong only to those who could afford a press. They would have been horrified at the notion that journalism should be regarded as the private preserve of the Rupert Murdochs and John Malones. The founders would not have entertained, let alone accepted, the current equation that seems to say that if rich people determine there is no good money to be made in the news, then society cannot have news. Let's find a king and call it a day.

The founders regarded the establishment of a press system, the Fourth Estate, as the first duty of the state. Jefferson and Madison devoted considerable energy to explaining the necessity of the press to a vibrant democracy. The government implemented extraordinary postal subsidies for the distribution of newspapers. It also instituted massive newspaper subsidies through printing contracts and the paid publication of government notices, all with the intent of expanding the number and variety of newspapers. When Tocqueville visited the United States in the 1830s he was struck by the quantity and quality of newspapers and periodicals compared with France, Canada and Britain. It was not an accident. It had little to do with "free markets." It was the result of public policy.

Moreover, when the Supreme Court has taken up matters of freedom of the press, its majority opinions have argued strongly for the necessity of the press as the essential underpinning of our constitutional republic. First Amendment absolutist Hugo Black wrote that the "Amendment rests on the assumption that the widest possible dissemination of information from diverse and antagonistic sources is essential to the welfare of the public, that a free press is a condition of a free society." Black argued for the right and necessity of the government to counteract private monopolistic control over the media. More recently Justice Anthony Kennedy, a Reagan appointee, argued that "assuring the public has access to a multiplicity of information sources is a governmental purpose of the highest order."

But government support for the press is not merely a matter of history or legal interpretation. Complaints about a government role in fostering journalism invariably overlook the fact that our contemporary media system is anything but an independent "free market" institution. The government subsidies established by the founders did not end in the eighteenth--or even the nineteenth--century. Today the government doles out tens of billions of dollars in direct and indirect subsidies, including free and essentially permanent monopoly broadcast licenses, monopoly cable and satellite privileges, copyright protection and postal subsidies. (Indeed, this magazine has been working for the past few years with journals of the left and right to assure that those subsidies are available to all publications.) Because the subsidies mostly benefit the wealthy and powerful, they are rarely mentioned in the fictional account of an independent and feisty Fourth Estate. Both the rise and decline of commercial journalism can be attributed in part to government policies, which scrapped the regulations and ownership rules that had encouraged local broadcast journalism and allowed for lax regulation as well as tax deductions for advertising--policies that greatly increased news media revenues.

The truth is that government policies and subsidies already define our press system. The only question is whether they will be enlightened and democratic, as in the early Republic, or corrupt and corrosive to democracy, as has been the case in recent decades. The answer will be determined in coming years as part of what is certain to be a bruising battle: media companies and their lobbying groups will argue against the "heavy hand of government" while defending existing subsidies. They will propose more deregulation, hoping to capitalize on the crisis to remove the last barriers to print, broadcast and digital consolidation in local markets--creating media "company towns," where competition is eliminated, along with journalism jobs, in pursuit of better returns for investors. Enlightened elected officials, media unions and public interest and community groups that recognize the role of robust journalism are going to have to step up to argue for a real fix.

Fortunately, an increasing number of veteran journalists, scholars and activists are beginning to grasp the historical significance of the present moment and the central role of public policy. It was the late James Carey, decorated University of Illinois and Columbia journalism professor and no fan of government power, who saw this before almost anyone else, writing in 2002: "Alas, the press may have to rely upon a democratic state to create the conditions necessary for a democratic press to flourish and for journalists to be restored to their proper role as orchestrators of the conversation of a democratic culture."

We have to ask where we want to end up, after the reforms have been implemented. In our view we need to have competing independent newsrooms of well-paid journalists in every state and in every major community. This is not about newspapers or even broadcast media; it entails all media and accepts that we may be headed into an era when nearly all of our communication will be digital. Ideally this will be a pluralistic system, where there will be different institutional structures. Varieties of nonprofit media will have to play a much larger role, though not a monopolistic one.

We recognize and embrace the need for a system in which there will be a range of perspectives from left to right, alongside some media more intent on maintaining a less explicitly ideological stance. We must have a system that prohibits state censorship and that minimizes commercial control over journalistic values and pursuits. The right of any person to start his or her own medium, commercial or nonprofit, at any time is inviolable. From this foundation we can envision a thriving, digital citizen's journalism complementing and probably merging with professional journalism. What will the mix be? It would vary, with more not-for-profit and subsidized media in rural and low-income areas, more for-profit media in wealthier ones. The first order of any government intervention would be to assure that no state or region would be without quality local, state, national or international journalism.

We begin with the notion that journalism is a public good, that it has broad social benefits far beyond that between buyer and seller. Like all public goods, we need the resources to get it produced. This is the role of the state and public policy. It will require a subsidy and should be regarded as similar to the education system or the military in that regard. Only a nihilist would consider it sufficient to rely on profit-seeking commercial interests or philanthropy to educate our youth or defend the nation from attack. With the collapse of the commercial news system, the same logic applies. Just as there came a moment when policy-makers recognized the necessity of investing tax dollars to create a public education system to teach our children, so a moment has arrived at which we must recognize the need to invest tax dollars to create and maintain news gathering, reporting and writing with the purpose of informing all our citizens.

So, if we can accept the need for government intervention to save American journalism, what form should it take? In the near term, we need to think about an immediate journalism economic stimulus, to be revisited after three years, and we need to think big. Let's eliminate postal rates for periodicals that garner less than 20 percent of their revenues from advertising. This keeps alive all sorts of magazines and journals of opinion that are being devastated by distribution costs. It is these publications that often do investigative, cutting-edge, politically provocative journalism.

What to do about newspapers? Let's give all Americans an annual tax credit for the first $200 they spend on daily newspapers. The newspapers would have to publish at least five times per week and maintain a substantial "news hole," say at least twenty-four broad pages each day, with less than 50 percent advertising. In effect, this means the government will pay for every citizen who so desires to get a free daily newspaper subscription, but the taxpayer gets to pick the newspaper--this is an indirect subsidy, because the government does not control who gets the money. This will buy time for our old media newsrooms--and for us citizens--to develop a plan to establish journalism in the digital era. We could see this evolving into a system to provide tax credits for online subscriptions as well.

None of these proposed subsidies favor or censor any particular viewpoint. The primary condition on media recipients of this stimulus subsidy would be a mild one: that they make at least 90 percent of their content immediately available free online. In this way, the subsidies would benefit citizens and taxpayers, expanding the public domain and providing the Internet with a rich vein of material available to all.

What should be done about the disconnect between young people and journalism? Have the government allocate funds so every middle school, high school and college has a well-funded student newspaper and a low-power FM radio station, all of them with substantial websites. We need to get young people accustomed to producing journalism and to appreciating what differentiates good journalism from the other stuff.

The essential component for the immediate stimulus should be an exponential expansion of funding for public and community broadcasting, with the requirement that most of the funds be used for journalism, especially at the local level, and that all programming be available for free online. Other democracies outspend the United States by whopping margins per capita on public media: Canada sixteen times more; Germany twenty times more; Japan forty-three times more; Britain sixty times more; Finland and Denmark seventy-five times more. These investments have produced dramatically more detailed and incisive international reporting, as well as programming to serve young people, women, linguistic and ethnic minorities and regions that might otherwise be neglected by for-profit media.

Perhaps in the past the paucity of public media in the United States could be justified by the enormous corporate media presence. But as the corporate sector shrivels we need something to replace it, and fast. Public and community broadcasters are in a position to be just that, and to keep alive the practice of news gathering in countless communities across the nation. Indeed, if a regional daily like the San Francisco Chronicle fails this year, why not try a federally funded experiment: maintain the newsroom as a digital extension of the local public broadcasting system?

Currently the government spends less than $450 million annually on public media. (To put matters in perspective, it spends several times that much on Pentagon public relations designed, among other things, to encourage favorable press coverage of the wars that the vast majority of Americans oppose.) Based on what other highly democratic and free countries do, the allocation from the government should be closer to $10 billion. All totaled, the suggestions we make here for subscription subsidies, postal reforms, youth media and investment in public broadcasting have a price tag in the range of $60 billion over the next three years.

This is a substantial amount of money. In normal times it might be too much to ask. But in a time of national crisis, when an informed and engaged citizenry is America's best hope, $20 billion a year is chicken feed for building what would essentially be a bridge across which journalism might pass from dying old media to the promise of something new. Think of it as a free press "infrastructure project" that is necessary to maintain an informed citizenry, and democracy itself. It would keep the press system alive. And it has the added benefit of providing an economic stimulus. If these journalists (and the tens of thousands of production and distribution workers associated with newspapers) are not put to work through the programs we propose, their knowledge and expertise will be lost. They will be unemployed, and their unemployment will contribute to further stagnation and economic decline--especially in big cities where newspapers are major employers.

These proposals are a good start, but then the really hard work begins. We have to come up with a plan to convert failing newspapers into journalistic entities with the express purpose of assuring that fully staffed, functioning and, ideally, competing newsrooms continue to operate in communities across the country. The only way to do this is by using tax policies, credit policies and explicit subsidies to convert the remains of old media into independent, stable institutions that are ready to compete and communicate in the decades to come. To get from here to there, and especially to make possible multiple competing newsrooms in larger communities, policy-makers should be open to commercial ownership, municipal ownership, staff ownership or independent nonprofit ownership. Ideally the next media system will have a combination of the above; and the government should be prepared to rewrite rules and regulations and to use its largesse to aid a variety of sound initiatives.

We confess that we do not have all the answers. Neither, we have discovered, does anyone else. The fatal flaw in so many sincere but doomed responses to the current crisis is that they try to do the impossible, to create a system using varying doses of foundation grants, do-gooder capitalism, citizen donations, volunteer labor, the anticipation of a miraculous increase in advertising manna and/or a sudden--and in our view unimaginable--reversal on the part of Americans who have thus far shown no inclination to pay for online content. At best, these are piecemeal proposals when we are in dire need of building an entire edifice. The money from these sources is insufficient to address the crisis in journalism.

We have to open the door to enlightened public policies and subsidies. We need our members of Congress and our leading scholars to approach this matter with the same urgency with which they would approach the threat of terrorism, pandemic, financial collapse or climate change. We need an organized citizenry demanding the institutions that make self-government possible. Only then can we, like our founders, build a free press. The technologies and the economic challenges are, of course, more complex than in the 1790s, but the answer is the same: the democratic state, the government, must create the conditions for sustaining the journalism that can provide the people with the information they need to be their own governors.

About John Nichols

John Nichols, a pioneering political blogger, has written The Beat since 1999. His posts have been circulated internationally, quoted in numerous books and mentioned in debates on the floor of Congress.

Nichols writes about politics for The Nation magazine as its Washington correspondent. He is a contributing writer for The Progressive and In These Times and the associate editor of the Capital Times, the daily newspaper in Madison, Wisconsin. His articles have appeared in the New York Times, Chicago Tribune and dozens of other newspapers.

more...

About Robert W. McChesney

Robert McChesney is Gutgsell Endowed Professor in the Department of Communication at the University of Illinois. He hosts the program Media Matters on WILL-AM every Sunday afternoon from 1-2PM central time. He and John Nichols, The Nation's Washington correspondent, are the founders of Free Press, the media reform network, and the authors of Tragedy and Farce: How the American Media Sell Wars, Spin Elections, and Destroy Democracy (New Press). He has written 16 books and his work has been translated into 15 languages. more...

Thursday, March 12, 2009

How To Fix American Journalism

If American journalism is to save itself, it must look to non-profits and universities for funding and support, forging partnerships hinged on hard-hitting investigations and led by a new crop of reporters trained to gather and not simply comment on the news.

That was the message conveyed by media watchdogs who gathered Thursday morning for a two-day conference at Columbia University's Graduate School of Journalism.

"Let's invite a group of our leading private universities and colleges to create, fund and operate a non-profit demonstration model for investigative journalism," said Bevis Longstreth of the Fund for Independence in Journalism, a conference sponsor.

Longstreth dismissed calls for a government-funded media bailout as "crazy, absolutely crazy" because one of the chief roles of an independent media is to report on government abuse. "Being fed by the hand one is trained to bite won't work," he said.

Media partnerships are already underway at schools across the country, said Charles Lewis, founder of the Center for Public Integrity and president of the Fund for Independence in Journalism.

In recent months programs have launched in Wisconsin, Illinois, and the state of Washington, as well as in Boston, Los Angeles and Miami, Lewis said. More established models include Lowell Bergman's UC Berkeley students working on projects for the New York Times and Frontline, as well as David Protess' death row innocence project at Northwestern University's Medill School.

"The diaspora of immensely talented journalists are going out and creating their own centers," Lewis said.

Sheila Coronel, director of Columbia's investigative journalism program, said such partnerships are crucial to a healthy media future. "Most of the watchdogs we have are middle aged - like me," she said. "We need watch puppies, and this is where universities can play a role."

But Lucy Dalglish, a media attorney and executive director of the Reporters Committee on Freedom of the Press, cautioned that relying on a non-profit model might expose journalists to government meddling.

"To me the notion of turning them all into non-profits subjects them to a level of government oversight and interference," Dalglish said. "I don't think you can insulate" media outlets from the government under a non-profit model.

John Dinges, who directs Columbia's radio journalism, said media entities such as NPR and PBS have successfully navigated government oversight. "We're always in an environment where we face pressure," he said.

Whether such partnerships can take the place of the current, failing ad-driven model remains to be seen. Estimates for media job losses for 2008 range from 11,000 to 13,000. Pro Publica, the largest non-profit investigative outfit in the U.S., employs a reporting staff of 28, according to Longstreth.

Drew Sullivan, an editor at the Center for Investigative Reporting in Bosnia, pointed out that "ninety-five percent of the world's non-profit investigative resources are in this room."

Both intellectual freedom and financing are motivating these partnerships.

"It's not just press freedom," Nicholas Lemann, dean of the school, told the group. "It's also having revenues to actually to the work. Both of those are required."

Lemann cautioned against citing the First Amendment as an argument for the perpetuation of newspapers and other media, because it suggests that somehow the press will exist as a basic tenet of a free society, no matter what.

"There's a little bit of danger in that, because there's an assumption that 'it's just gonna happen,'" he said. The existence of a free press is "a struggle for something that isn't an inalienable right but was created with a lot of struggle and has a fairly tenuous existence."

http://www.huffingtonpost.com/sara-catania/how-to-fix-american-journ_b_174292.html

Thursday, January 29, 2009

Investigating the Future of Investigative Journalism. Part III: Who’s Going to Pay For All This?

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Will the lifeblood of quality journalism flow away like so much ink? Today: If there’s a future for investigative journalism, who’s going to foot the bill?

Read Part I here. Read Part II here.

By Joe Eskenazi

When Robert Rosenthal took over the Philadelphia Inquirer 10 years ago, the paper’s profit margin was a hefty 20 percent.

And still, “the pressure on the newsroom over the next four years to increase the margin was astonishing. [Newspaper chain] Knight-Ridder made a shitload of money, and now they’re out of business.”

The Hearst Corporation, which owns the San Francisco Chronicle, has been losing a shitload of money. And, after they last year dismissed a quarter of their newsroom employees, “Rosey” resigned as managing editor to take over Berkeley’s Center for Investigative Reporting.

He maintains there is a future for investigative journalism in print media – so long as newspaper owners are OK with not making shitloads of money.

“If [real estate magnate and newly minted media baron] Sam Zell is happy with a profit margin of 7 or 8 percent, the Los Angeles Times may support a staff of 850,” notes Rosenthal. Also, he adds, if some nonprofit enterprise took over a paper, that, too, would solve the profitability-vs.-quality debate that often sees investigative journalism as its earliest victim.

If some nonprofit has billions of dollars...

to buy and operate a major paper or chain – well, that’d be swell. And if wealthy investors, such as Zell -- with non-news backgrounds, who invested in newspapers as just that, an investment – suddenly became altruistic – that’d be super swell.

Barring some innovative newspaper business model that the field’s top minds can’t formulate at this time, more and more investigative journalism is likely to be left to privately funded enterprises such as Rosenthal’s CIR or Pro Publica, the philanthropically endowed organization headed by former Wall Street Journal managing editor Paul Steiger.

“I speak to these people in the non-profit world who have large pots of money and are very interested in funding probative journalism because they’re starting to realize that it’s very rapidly disappearing,” says A.C. Thompson, former investigative reporter for both SF Weekly and the Guardian (one of the many places for which he currently toils is, in fact, the CIR).

And for those who believe tethering the future of investigative journalism to the beneficence of deep-pocketed, philanthropic benefactors puts one on shaky ground, Steiger notes that reliance on the traditional newspaper business model hasn’t exactly been the standard of stability of late.

Pro Publica “will probably be cool,” in Thompson’s estimation, but he notes that the 24 jobs it strives to create will hardly “offset the hundreds of jobs lost just here in the Bay Area, and thousands nationwide.”

Meanwhile, the movement of journalistic hotshots such as Steiger and Rosenthal to investigative outlets is being keenly observed within the news business. If such major players fail to make a correspondingly major splash, it will be one more piece of bad news for a bad-news industry.

“If someone like Rosey, with his track record, can’t do some big things, I’ll be really worried,” cops Thompson.

Rosenthal, for his part, admitted to us that he is feeling the pressure. And facing a future that will likely bring thinner and thinner papers with less and less investigative content, the challenge for Rosenthal, Steiger et al. to make a difference is great.

And yet, whether they succeed or fail, a future in which newspapers shunt aside investigative coverage as a luxury is bitter and antithetical to veteran muckrakers.

“To me, investigative journalism is at the heart of coverage of a local community. If we can’t do that, I’m not sure what our purpose is,” says Paul Grabowicz, a U.C. Berkeley journalism professor and former investigative reporter for the Oakland Tribune.

“Anybody can set up a Web cam and you can Webcast a city council meeting. Anyone can re-write a press release and anyone can cover a lot of prep sports and other very local news. What journalism, I hope, has to offer is context and availability to dig behind the scenes and find out what’s really going on. We spend time investigating something that the average person, even if he has expertise, doesn’t have time for and it’s not necessarily their job.

“That, to me, is where the real tragedy is. If you get rid of that, I’m not sure what we’re left with.”


Photo | Grove Pashley-Corbis