Local journalism: Business models that don’t rely on scale

Emily Bell hired me at The Guardian, and she has just delivered a speech in which she says what I already know.

The demands of web scale economics have torpedoed the local news model; they have also driven great invention and a new set of entrepreneurial skills into journalism.

Later she elaborates what web scale means.

A viral story is the holy grail. And viral does not mean a couple of hundred thousand any more, it means millions. Sometimes tens of millions.

I know Emily is right that one successful digital business model is scale, but I don’t believe that is the only business model. It’s just one that works right now, in some contexts. Scale isn’t new – it has always been successful, long before the internet and mobile media came along.

But I’ll sketch out the challenge for local media. I am the editor of a number of local newspapers in the US, and I’ll take one, the Sheboygan Press as an example. The total population of Sheboygan County is 114,922. That’s not even a million, much less tens of millions. And, to make things worse, the internet has undermined many of the geographical advantages that local newspapers used to enjoy.

On this basis, I might as well throw in the towel, but I’m nowhere near ready to do that. The challenge for local news is to create a new range of products for audiences born digital and mobile. For too long we’ve been trying to find a market for the same products that we used to deliver in print, and that just won’t work. We can’t simply write that local council story the same way that we used to and hope that social media will be enough to market it. I’m really not sure that those incremental, process-based stories actually engage audiences. Instead, we need thematic stories and engagement opportunities that tackle big issues in sticky ways.

There will not be a single source of revenue that will replace the fat revenues that we used to earn from print. But I have the insane, audacious belief that I can come up with another business model with multiple lines of new revenue: Digital marketing services, events and social strategies that deeply engage local audiences and make money. As Jim Brady once said to me, there is no silver bullet to save local media, just a lot of shiny shrapnel.

As I did when I was at The Guardian, I’m using third party services, the duck tape and spit of the internet, to bring the cost of experimentation down as close to zero as possible. I’m relentlessly measuring what I do, and I’m ruthless and unsentimental about failure. Learn from things that work and things that don’t work. Learn fast rather than fail fast. And, when we hit on something that works, we’re going to scale as much as we possibly can.

And we in journalism need to get over our aversion to selling. We’re being outsold at every turn, and in order to survive, we need to sell the value of the public service we provide, sell so hard that it will make P.T. Barnum blush. This is an existential battle for attention, and we need to sell a vision of local journalism rooted in service to our communities. And I’m not going to pussyfoot around this, we need to get over our aversion to making some coin.

No, I don’t think that every journalist needs to be out there selling subscriptions and ads, but every journalist needs to realise that the battle for attention that we’re fighting. Every journalist needs to understand the business we’re in and how it is changing.

I know that this is a daunting challenge, but I’ve never shirked from a challenge. Bring it on.