Reviving Local News: The Surge of Hyperlocal Journalism

In the early 2000s, the local newspaper industry thrived, buoyed by robust financial health and a promising outlook. By 2004, newspapers were prized investments on Wall Street, and many enjoyed profit margins exceeding 20%. However, the digital revolution quickly dismantled this longstanding economic model, leading to a dramatic transformation in how local news is produced and consumed.

As we approach early 2024, a sobering milestone looms: one-third of the newspapers from 2004 will no longer be in operation. The once-dominant network of 9,000 newspapers, which played a crucial role in connecting communities across the country, is now shrinking at a rate of more than two papers per week. The remaining 6,000 newspapers are struggling with narrow profit margins, and digital platforms have not fully compensated for the loss of traditional print media.

The Great Recession of 2008 further exposed the fragility of the local news industry, prompting a renewed focus on revitalizing community journalism for the digital era. Having transitioned from a career spanning the New York Times to the Wall Street Journal, I embarked on a new role as a professor at the University of North Carolina. This transition provided a unique vantage point from which to explore new business models for local news.

In my books, "Saving Community Journalism" and "The Strategic Digital Media Entrepreneur," alongside six major reports on the state of local news, I have chronicled the rise of "news deserts" and "ghost newspapers," as well as the influx of hedge-fund and private equity ownership. Despite these challenges, a resilient group of entrepreneurs and researchers from various disciplines continue to seek innovative solutions to the crisis facing local journalism.

Recent reports underscore a critical juncture for local news. There is a growing movement among policymakers, philanthropists, educators, and citizens to address the decline and support new initiatives aimed at revitalizing the local news ecosystem. The actions taken in the coming years will be pivotal in determining whether we can modernize and enhance local news to better serve communities in the digital age.

As part of this effort, the Local News Initiative at the Medill School of Journalism will expand its research team to explore new directions in local news. The 2023 State of Local News report will mark a significant transition, offering a comprehensive overview of lessons learned and outlining future actions.

While the decline of local newspapers has been severe, impacting nearly 2,900 publications—primarily weeklies and small dailies—the impact has varied widely. Affluent areas with robust internet access often have multiple news sources, whereas economically disadvantaged communities, whether rural or urban, face the greatest challenges. These areas are most vulnerable to losing their local newspaper and least likely to attract the investment needed to sustain or replace it.

The future of local journalism depends on our collective efforts to support and innovate within this sector. As we look ahead, it is crucial to embrace new strategies and funding opportunities to ensure that local news continues to thrive and serve communities across the country.