The Existing News Model Is Dead

Since 2005, over 3,200 local print newspapers have ceased to exist in the United States. Well-known and well-funded online news brands have failed, merged, or severely cut services. Local TV stations were purchased by conglomerates who cut reporting capacity to reduce costs and increase profits. Predictions of the imminent demise of linear TV are coming true. Subscriber counts, advertising revenues, and “if it bleeds, it leads” journalism became the norm, reducing the quality of local newscasts and accountability of government leaders.

Many factors contributed to these failures, but a common thread is that news organizations have been forced to divert financial resources away from their core competency—reporting the news—and become things they are not, such as tech companies and customer service providers. In its heyday, newsrooms didn’t worry about subscriber growth, UI/UX design, direct customer support, internet connectivity, or social media costs. But now they do. The result is weakened news organizations with fewer resources to report stories that matter.

Adding to the problem, cord-cutting is beginning to have a significant negative impact on traditional newsrooms’ advertising revenues. Analysts believe that station owners may soon no longer have the financial resources to sustain local newsrooms. When that happens, consumers will have few choices for impartial local journalism other than social media or partisan websites.