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Local Angel Network Gets Papers Into the Digital Startup Game

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Local Angel Network Gets Papers Into the Digital Startup Game THE Mailed from Sterling, Ill. INLANDER Inform Post Office if it arrives after September 15 Stay engaged. Find solutions. Move forward. September 2016 | Vol. 30, No. 9 131ST ANNUAL MEETING: OCTOBER 23–25, 2016 Local Angel Annual Meeting programmed for success Network gets THINK OF JUST ABOUT ANY GOAL a newspaper publisher has—like more reve- NextTech is ready nue from diverse sources, deeper audience papers into engagement, a workplace culture of innova- for its close-up tion or jump-starting national and major This year, NextTech: The Digital advertising accounts—and there’s a session Solutions Showcase is no longer the digital for that at this year’s Annual Meeting. As the ambitious and crowded program a “bonus” or pre-meeting shapes up, the emphasis on success stories session—it’s the formal start of st startup game becomes more pronounced. Don’t come to the 131 Inland Annual Meeting. Chicago expecting gloomy reports of an And this third annual By Mark Fitzgerald industry in crisis. Instead, attendees will NextTech on Sunday, Oct. 23 encounter presentations from newspaper from 2 p.m. to 5 p.m. will differ atch out Sand Hill Road VCs, organizations that are finding new ways from previous sessions with its Wthere’s a new group of news- prosper or powering up traditional sources focus on the most buzzed about paper companies ready to start of revenue and audience growth. platform: digital video in its funding and partnering with startups. The Annual Meeting agenda has been many forms. The Local Angel Network is looking to crafted to provide easily emulated examples “There’s definitely a of strategies and tactics that are proving suc- find and fund startups that can help newspa- heightened industry interest in cessful right now. Executives from newspa- will be held at the J.W. Marriott in pers grow diverse sources of revenue and fos- pers and groups large and small will speak Chicago’s South Loop. The Exhibitors video,” said Greg Osberg, who is ter a culture of innovation in their organiza- on exactly how they achieved success in Lounge that was inaugurated last year is assembling the lineup of tions. Like the many venture capital compa- areas ranging from events to promotions and expected to fill to capacity even in its exten- startups. There are some nies clustered along Sand Hill Road in Menlo audience engagement to digital agency ser- sive space. obvious reasons for that Park, California, the Local Angel Network will vet proposals from startups and decide vices. For highlights of the Annual Meeting pro- NEXTTECH, CONTINUED ON PAGE 9 For the second year, the Annual Meeting gram, see pages 8 and 9. whether to invest in them. “This gives newspapers exposure to excit- ing new technology that will accelerate their digital offerings, grow their digital audience more readily—and grow their digital adver- Deadline looming in Inland Newsroom Contests tising revenue,” said Greg Osberg, CEO and Jose Luis Villegas of founder of Revlyst, a revenue catalyst firm The Sacramento that connects early-stage digital startups with Bee took first place the media industry. in the News Photo- The idea for the Local Angel Network was Sports category of conceived nearly simultaneously by Osberg the 2015 Newsroom and Nelson Clyde, the president of T.B. Butler Contests with this Publishing Co. Inc., and publisher of the Tyler shot of a close call at home plate. (Texas) Morning Telegraph. At a panel dis- The 2016 edition of cussion at Inland’s NextTech, Osberg had the contest remains mused about something Clyde had also been open for a short thinking about: A way that newspapers could time. Visit collectively become involved as VCs for inlandpress.org/ startups. contests for “It really was uncanny timing that he came information on entries and fees. to be on the meeting agenda,” Clyde said. “People were hungry, I’d say across the industry, for new ideas, new revenues and new diversification strategies.” So far, five newspaper organizations have signed on to the Local Angel Network, which kicked off formally in July and which will meet again just before this year’s NextTech NETWORK, CONTINUED ON PAGE 11 THE Briefs Send items to [email protected] INLANDER Stay engaged. Find solutions. Move forward. Family newspapers continued their VOL. 30, NO. 9 | SEPTEMBER 2016 701 Lee St., Suite 925, Des Plaines, IL 60016 | (847) 795-0380 aggressive buying during the summer Fax (847) 795-0385 | [email protected] | inlandpress.org amily-owned newspaper companies accelerated their recent and remarkable acquisitive ways in August, snapping up newspapers being shed by corporate owners and expanding their reach beyond their tradi- THE INLANDER TEAM Ftional markets. Mark Fitzgerald, EDITOR Nothing better illustrated this trend than the sale buying up papers very aggressively. For the Nutting Karla Zander, ADVERTISING DIRECTOR by publicly traded GateHouse Media—which has family’s Ogden Newspapers, for instance, the Creative Circle Media Solutions been expanding its newspaper portfolio for the past purchase in August of the Provo (Utah) Daily Herald DESIGN & PRODUCTION OUTSOURCING two years—of 12 downstate Illinois papers to family- from publicly traded Lee Enterprises was its second The Inlander is the official publication of the Inland Press owned Paddock Publications Inc. For Paddock it was newspaper purchase in a little more than eight Association and Foundation. It is published 12 times a year. a move to markets 300 miles from its suburban weeks. In June, Ogden bought the Lawrence (Kan.) The Inlander is printed by Shaw Community News Group, Sterling, Ill. Paper supplied by PAGE Cooperative, King of Chicago base, where it publishes the Daily Herald, Journal-World from the Simons family’s The World Prussia, Pa. the Spanish-language weekly Reflejos and niche Company. DISCLAIMER: Columns and articles do not represent the publications. What follows are reports from the field in this new opinions of Inland Press Association or its members or of the Some family-owned newspaper companies are newspaper M&A environment. Inland Press Foundation. Submissions from law firms do not constitute legal advice or opinions. They are intended for general information purposes only Paddock Publications, the suburban Chicago publisher, branches out to the THE INLAND PRESS ASSOCIATION south with purchase of five downstate Illinois dailies from GateHouse Media The Inland Press Association is a not-for-profit organization owned by its members and operated by a volunteer board. Dues Paddock Publications Inc., the The Randolph County Herald Tribune ability to grow the business. are among the lowest in the industry, about $32.20 per family owned publisher of the Daily in Chester, The Ridgway News and Ray said Paddock, which has thousand circulation for dailies, $137.50 flat rate for weeklies. Herald in the Chicago Steeleville Ledger. published in the Chicago suburbs since The Inland Press Foundation assists with continuing education suburbs, is buying five Terms of the transaction 1872, intends to take its “newspapering programs for newspaper employees. dailies and seven weeklies were not disclosed. success in the suburbs to downstate located in southern Illinois “The purchase is in Illinois.” He suggested Paddock may Tom Slaughter Karla Zander from GateHouse Media. keeping with our corporate be in the hunt to buy more community EXECUTIVE DIRECTOR MANAGER OF RESEARCH [email protected] AND MEMBER SERVICES Included in the sale are strategy to diversify the newspapers. [email protected] these dailies: Benton company into areas where “Warren Buffett’s Berkshire Patricia Slusher DIRECTOR OF MEMBERSHIP Steve Hoffman Evening News, The Daily Paddock’s brand of Hathaway, one of the country’s most AND PROGRAMMING ACCOUNTING MANAGER Register in Harrisburg, The journalism and marketing successful corporations, is employing [email protected] [email protected] Daily Republican in acumen will provide a similar strategy by buying small and Marion, Du Quoin Evening additive revenues and medium-sized daily and weekly news- Call and Eldorado Daily profitability,” Douglas K. papers,” Ray said. “He has said and we INLAND EXECUTIVE COMMITTEE Journal. Ray, chairman, publisher believe: There is no substitute for local Mike Gugliotto Doug Hiemstra The weeklies are the and CEO of Paddock news, and a newspaper that serves the ASSOCIATION PRESIDENT ASSOCIATION PRESIDENT-ELECT Ashley News, Du Quoin Publications, said in a community will remain indispensable. Pioneer News Group Co. BH Media Group News, The Gallatin Democrat in statement. “These newspapers fit that We intend to bring that kind of com- Seattle, Wash. Omaha, Neb. Shawneetown, Christopher Progress, model, and we are confident in our mitment to Southern Illinois.” Cheryl Dell Doug Phares ASSOCIATION CHAIRWOMAN FOUNDATION PRESIDENT Sacramento Bee Sandusky Newspapers Inc. Sacramento, Calif. Sandusky, Ohio Nutting family’s Ogden Newspapers buys Provo Daily Herald from Lee Tom Yunt Jeremy Halbreich Publicly traded Lee Enterprises Inc. has history. The earliest predecessor of the continue to deliver strong local news and ASSOCIATION VICE PRESIDENT FOUNDATION VICE PRESIDENT sold the Provo (Utah) Daily Herald and Daily Herald was founded in 1873 under information to the Provo community,” United Communications Corp. AIM Media Texas Sierra Vista, Ariz. McAllen, Texas its digital media operations to family- the name Provo Daily Lee President and CEO owned Ogden Newspapers. Times. The company was Kevin Mowbray said in a Tom Slaughter The seven-day Daily Herald has a purchased in 1926 by James statement. SECRETARY-TREASURER Inland Executive Director print circulation of approximately G. Scripps, eldest son of “We are pleased and Des Plaines, Ill. 20,000 daily and nearly 27,000 on newspaper magnate E.W. proud to have been selected Sundays. Its website, Heraldextra.com, Scripps. The Scripps family to be the successor owners reaches approximately 700,000 unique held the newspaper until the of the Daily Herald,” visitors each month.
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