Home Money & Business Business Local news outlets are dwindling, yet digital platforms are expanding in urban regions.

Local news outlets are dwindling, yet digital platforms are expanding in urban regions.

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Local news outlets are dwindling, yet digital platforms are expanding in urban regions.

In the United States, the number of newspapers shutting down surged to over two per week in 2023. However, a recent wave of innovation from digital entrepreneurs has emerged, suggesting slight growth in what has widely been recognized as a declining landscape for local news.

Last year, 127 newspapers ceased operations, while 81 new digital platforms emerged, marking the highest increase since 2018, when the Medill Local News Initiative began tracking such developments. This surge in digital outlets hints at the potential resilience and adaptability within the industry, according to Tim Franklin, the initiative’s director.

Nonetheless, there is a note of caution regarding the digital news sector, which continues to experience significant fluctuations. In 2023, 212 new sites were launched—including 30 former print newspapers that transitioned to digital-only formats—while 131 others shut down. This resulted in a modest net increase of 81 digital news sources.

The overall outlook for local news remains dire, with little improvement in the underlying issues that have devastated the industry. The loss of both advertisers and readers continues, with more than 3,200 newspapers closing since 2005, leaving around 5,600 still operating. Last year saw the elimination of nearly 2,000 jobs within newsrooms.

Franklin commented on the escalating crisis, stating, “The local news crisis is snowballing,” pointing to the proliferation of news deserts, ongoing closures, and the significant decline in newspaper employment.

Several notable newspaper closures highlight this trend, including the Hinton Times in northwest Iowa, which shut down after 28 years due to the retirement of its owners, the Northland Press near Brainerd, Minnesota, which ended following its publisher’s death, and the Tioga Tribune in North Dakota, which lost its editor to relocation.

Among the newly established digital platforms, around 90 percent are based in urban centers, aiming to serve communities that have had diminished coverage due to job losses at larger media agencies. For instance, in the Chicago area, Block Club Chicago provides in-depth coverage of numerous neighborhoods, The TRiiBE targets young, professional Black audiences, and Cicero Independiente caters to Latino communities.

Despite positive developments in urban locales, an urgent demand for news remains in rural regions. The Medill report identified 279 counties at risk of losing their local news altogether, based on factors including poverty and limited media presence. This figure represents a 22 percent increase compared to the previous year.

Additionally, there has been a notable rise in newspaper ownership changes, with 258 transitions in 2023, up from 180 the prior year. A growing number of smaller firms, rather than major chains like Gannett, are acquiring newspapers, contributing to the emergence of organizations like the Carpenter Media Group in Farmville, Virginia.

The trend among recent digital startups leans towards nonprofit models rather than for-profit ventures. According to Zach Metzger, director of the Medill State of Local News Project, this approach helps eliminate printing and distribution costs and provides increased flexibility in securing funding.