LOSING THE NEWS The Decimation of Local Journalism and the Search for Solutions LOSING THE NEWS The Decimation of Local Journalism and the Search for Solutions November 20, 2019 ©2019 PEN America. All rights reserved. PEN America stands at the intersection of literature and hu- man rights to protect open expression in the United States and worldwide. We champion the freedom to write, recognizing the power of the word to transform the world. Our mission is to unite writers and their allies to celebrate creative expression and defend the liberties that make it possible. Founded in 1922, PEN America is the largest of more than 100 centers of PEN International. Our strength is in our membership—a nationwide community of more than 7,300 novelists, journalists, poets, es- sayists, playwrights, editors, publishers, translators, agents, and other writing professionals. For more information, visit pen.org. Design by Pettypiece + Co. Cover image: a decommissioned newspaper box abandoned in an alley in California; credit: Robert Alexander / Archive photos via Getty Images This report was generously funded by Peter and Pam Barbey. CONTENTS LETTER 4 INTRODUCTION 5 WHAT IS A LOCAL NEWS ECOSYSTEM? 7 WHY LOCAL NEWS MATTERS 8 CASE STUDY: VIEW FROM SOUTHEASTERN NORTH CAROLINA 18 THE DECIMATION OF LOCAL NEWS 24 SYSTEMIC INEQUITY IN U.S. NEWS MEDIA 33 CASE STUDY: VIEW FROM DETROIT 37 INDUSTRY ADAPTATION 43 AND INNOVATION CASE STUDY: VIEW FROM DENVER 49 BIG PICTURE 56 SOLUTIONS RECOMMENDATIONS 76 ACKNOWLEDGEMENTS 80 ENDNOTES 81 From PEN America Trustee Ayad Akhtar LETTER The story is familiar: A Flint water crisis or showing how disparities in ac- local rural business col- cess to news in neighboring North Carolina counties lapses after losing its affected their respective environmental well-being, battle with a national cor- the report sheds light on how pivotal local news is to poration from a distant our civic life, and how imperiled it is. In case studies city. What’s lost is not in Detroit and Denver, we see a host of problems just the local livelihoods play out: Municipal and corporate malfeasance rises that business provided in tandem with newsroom layoffs; fewer reporters but also the local know- on the beat means even more racial and economic how that dies with it. Lo- inequality than usual in local coverage; national news cal merchants who know dominates, eroding trust in the kind of information their suppliers, know their customers—know their folks can verify with their own eyes and ears—all of businesses—are replaced by regional managers with this paving the way to wider tolerance for disinfor- MBAs, often without granular knowledge of either mation and “fake news.” the service they are providing or the place they are But not all the news is bad. serving, managers whose main directive is to cut We learn, too, of inspiring journalists and citizens costs. We’ve seen it to dire effect in retail, in farming, stepping into the breach, finding new ways to gather in insurance, almost everywhere, really. news and pay for it. In Denver, where two major When that national corporation is a hedge fund or papers once thrived, a host of locally run, commu- media conglomerate and that local business is news, nity-focused outlets are proliferating. One such out- the consequences can be perilous. Local news is let, Chalkbeat, is reporting from public schools and local know-how defined. A healthy local news eco- school board meetings, covering education, one of system provides communities with the information the biggest casualties of the attrition in local news— they need to live safe, healthy lives and participate and successfully scaling to other states. Nationwide, in the democratic life of their communities. Robust over 6,500 philanthropic foundations, as well as tech local news drives voter turnout, holds officials and giants, are now financing media initiatives. corporate leaders accountable, makes people aware But can we really depend on the largesse of philan- of nearby opportunities and dangers, and, perhaps thropists or big-tech to resuscitate our news deserts? most importantly, works against the now-widespread Perhaps the most important element of this report breakdown in social cohesion by narrating the life of is its willingness to assess the viability of alternative a place and its inhabitants, telling the daily stories models, to make hard and actionable recommen- that form the basis for shared communal experience. dations, and to offer a cogent argument for a once Since 2004, nearly 1,800 newspapers have closed, unheard-of possibility: outright public funding for leaving American towns and cities—sometimes entire local news. counties—without a meaningful source of local re- It’s work like this that makes me, as a board mem- porting. And the pace of closures is only accelerating ber, proud to be involved with PEN America. The as tech giants siphon off much of the ad revenue freedom to express, it turns out, depends on the that once sustained the media industry. Other local existence of audiences able to receive that expres- news sources (TV, radio stations) continue to see sion. As such, the health of our local news must be widespread consolidation under conglomerates that a matter of critical national concern to us all. lean on one-size-fits-all national news, the very sort of news now widely distrusted. But while Americans Ayad Akhtar still trust their local news sources, what many don’t realize is just how much these outlets are struggling. Which is why this PEN America report about the crisis in local news is so welcome, so timely, and so AYAD AKHTAR is a playwright and novelist. He is the necessary. Whether it’s walking us through the details winner of the Pulitzer Prize for Drama and a PEN of just how essential local news was in exposing the America Trustee since 2015. 4 PEN AMERICA many local outlets. Like virtually every industry in the INTRODUCTION United States, the media business is being subjected The decimation of local news in recent years— to widespread consolidation and the relentless cost specifically the hollowing-out of newspapers and cutting that follows. The result has been the weak- other vital reporting outlets at the city, state, and re- ening or collapse of many local news ecosystems. gional level—represents a crisis for American democ- “A mass-extinction event” is how journalist and Ford racy. When ad revenue dries up, consolidation and Foundation Program Officer for Creativity and Free cost cutting gut newsrooms, beats remain uncovered, Expression Farai Chideya describes this loss. And and corruption goes uninvestigated, the American while Americans consistently say they value and trust populace lacks vital information about their lives and local news sources more than national ones, polls their communities. A vibrant, responsive democracy suggest they are largely unaware of the threats local requires enlightened citizens, and without forceful outlets face. local reporting they are kept in the dark. All communities are not created equal when it At a time when political polarization is increasing comes to local news. Long-standing systemic inequi- and fraudulent news is spreading, a shared fact- ties have meant that for many Americans—especially based discourse on the issues that most directly people of color and residents of poor communities or affect us is both more essential and more elusive than remote rural areas—inadequate local news coverage ever. Without reliable information on how tax dollars has been the norm for decades. While media outlets are spent, how federal policy affects local communi- by and for communities of color have a lengthy and ties, and whether local elected officials are meeting distinguished history of providing news and solidarity constituent needs, how can we expect citizens to to an underserved audience, they have often been make informed choices about who should govern? under-financed and today are even more so. This re- The consequences of imperiled local news eco- port examines the interplay of historic inequities, the systems for U.S. political and civic life have already current local media downturn, and efforts to rectify been dramatic, and unless we take concerted ac- both longstanding and more recent local news deficits. tion, they will only get worse. Building on the work Throughout this report, we will spotlight com- of experts in journalism and media, PEN America munities that can no longer rely on local news out- has prepared this report to examine how the local lets to shed light on significant, even life-or-death, news crisis affects communities and democracy, and developments as they once did. We present three to propose ways to address it. As an organization case studies, focusing on Denver, Detroit, and two dedicated to both the celebration and defense of rural counties in southeastern North Carolina. PEN free expression, we recognize that the press plays America has enlisted journalists based in or near a vital role in making people’s voices heard, and in these communities to help illustrate the impact of enabling not just their right to speak, but their right struggling local news ecosystems on the ground. to know. This report then lays out pathways for revitalizing The report will begin by exploring why local journal- local journalism in the United States. New, nimble ism matters. As Michigan web publisher Khalil Hachem outlets are emerging, and existing outlets are adapt- explained to PEN America: “The essence of local news ing and innovating—developing alternative revenue is, first, providing information for people to under- streams, experimenting with nonprofit models, re- stand what’s going on, information that affects their building audiences, and better serving communities. lives. Second, holding public officials accountable. And Still, in the face of market failure, adaptation and third, making sure that democracy is healthy.”1 Local innovation alone cannot address the crisis at scale.