"An attack on our democracy": Financial firms gutting some local newsrooms

Summary

The newspaper industry in America faces a dual threat: a two-decade decline in advertising revenue due to digital platforms like Facebook and Google, and the aggressive cost-cutting practices of hedge funds like Alden Global Capital, which has been accused of 'vulturing' newspapers. This has led to a significant reduction in local news coverage, raising concerns about the impact on democracy. Journalists like Evan Brandt struggle to cover communities with dwindling resources, while the potential sale of Tribune Publishing to Alden sparks a fight to preserve local news. The script also highlights the importance of local journalism in holding leaders accountable and the efforts of philanthropists and reporters to reinvent the industry.

Takeaways

• 📉 The newspaper industry is in decline, with a significant loss of advertising revenue to platforms like Facebook and Google.
• 🏛️ Hedge funds and financial firms, including Alden Global Capital, own nearly a third of daily newspapers in America, often prioritizing profits over journalistic integrity.
• 📰 Local newsrooms are shrinking, leading to a decrease in local news coverage, which is crucial for community cohesion and holding local leaders accountable.
• 🏆 The Mercury, a local newspaper in Pennsylvania, won Pulitzer Prizes in 1979 and 1990 but has since seen dramatic staff reductions.
• 💼 Alden Global Capital has been accused of 'vulture capitalism,' buying newspapers, selling off assets, and cutting staff, leading to concerns about the future of local journalism.
• 🤝 Journalists at the Chicago Tribune fought back against Alden's acquisition, highlighting the importance of local and regional newspapers in a democratic society.
• 🏢 The decline in local news has been linked to increased corruption in local government, as seen in the case of Bell, California.
• 🌐 The vacuum left by local newspapers has been filled by national cable news and social media, often leading to more polarized and less localized content.
• 🆘 Solutions proposed include an increase in philanthropic support for local news and the creation of non-profit digital news outlets to focus on community-specific reporting.
• 🏡 The script concludes with a call to action for individuals and organizations to support local news as a vital component of American democracy.

Q & A

What is the main reason for the decline of the newspaper industry as mentioned in the script?

The main reason for the decline of the newspaper industry is the loss of advertising revenue to digital platforms like Facebook and Google.

What additional threat is mentioned in the script that affects newspapers besides the loss of advertising revenue?

The script mentions that hedge funds and other financial firms, which own nearly a third of the daily newspapers in America, pose an additional threat. These firms are often more committed to profit margins than to maintaining the quality of journalism.

Which hedge fund is specifically criticized in the script for its practices in the newspaper industry?

The script criticizes Alden Global Capital for its practices in the newspaper industry, with some in the industry calling it a 'vulture' that is 'bleeding newspapers dry'.

What question did Evan Brandt, a reporter for The Mercury, want to ask Heath Freeman, the president of Alden Global Capital?

Evan Brandt wanted to ask Heath Freeman, 'What value do you place on local news, and I'm not talking about money.'

What significant job loss has the newspaper sector experienced since 2008 according to the script?

The newspaper sector has experienced an astounding 57 percent job loss since 2008.

What was the response of some Chicago Tribune journalists to Alden Global Capital's acquisition of Tribune Publishing?

Some Chicago Tribune journalists, including Gary Marks and David Jackson, fought back by using their investigative and reporting skills to try to save the organization and wrote an op-ed in The New York Times pleading for a philanthropist or foundation to step forward to save their paper.

What was the role of local news in uncovering corruption in the city of Bell, California, as mentioned in the script?

When the local newspaper in Bell, California, shut down, there was no local reporting to hold local officials accountable, leading to increased corruption, including elected officials voting themselves pay raises.

What is Report for America, as referenced in the script?

Report for America is a program co-founded by Stephen Waldman in 2017 that sends journalists to newsrooms in underserved communities across the country to flood those communities with local reporting.

How does the script suggest that the crisis in local news can be addressed?

The script suggests that the crisis in local news can be addressed by a dramatic increase in the commitment of foundations, philanthropists, and donors to support local news.

What is the Baltimore Banner, and how does it relate to the newspaper industry crisis discussed in the script?

The Baltimore Banner is a non-profit digital news outlet launched by Stewart Bainum to compete with the Baltimore Sun. It plans to cover only local news and hire more than 100 reporters over the next three years, aiming to fill the gap left by the decline of traditional newspapers.