At the end of September, Oxford University’s Reuters Institute published a research report titled: “Publish less, but publish better: pivoting to paid in local news”. The research is based on 20 interviews conducted between December 2019 and March 2020 with managers and editors at eight local and regional newspapers in four countries (Finland, France, Germany, and the UK). The report examines how local and regional newspapers around Europe have adapted their editorial and business strategies to remain sustainable in the digital media environment.

Most of the legacy publishers have complete their digitalization, while the local news’ transition to paid contents is still under the way. This article is excerpted from Reuters’s research, and we are going to analyze how local news complete their transition to paid contents under the impacts of digitalization and epidemic.

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Summery

In the last two years, all of the case newspapers have shifted from digital strategies emphasizing the pursuit of audience reach, monetized through advertising or a blend of paid-content models and auxiliary sources, to a focus on building lasting relationships with readers who will pay for online content in the form of subscriptions, memberships, access to premium articles, donations, or micropayments.

The news organizations prioritize loyal readers over ‘fly-by’ visitors driven by platforms such as Google and Facebook. They aim to attract these audiences through producing distinctive, ‘value-added’ content that reflects both the classic functions of local journalism – coverage of crime, courts, and traffic – and also allows for continued experimentation in long-form, data-driven, and solutions-oriented reporting.

The newsrooms have embraced a commercial mindset that supports the adoption of new editorial processes and roles to enhance digital revenues, including strategies for scheduled content, quantifying attention and engagement, breaking online news, producing in-depth features, developing new products such as podcasts and newsletters, collaborating between editorial and commercial departments, and sharing content among multiple publisher holdings.

This emphasis on relationship-building has spurred changes to these organizations’ platform strategies, particularly in regard to Facebook, which remains a significant traffic-driver. Just as Facebook as a company has shifted its focus from public posts to groups and private messaging, the newspapers have scaled back their reliance on the platform for achieving algorithmic reach and instead use it strategically to promote subscriptions, connect with targeted groups, and reach new audiences.

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Overall, the editors and managers interviewed for this report are optimistic about the potential of payment-driven strategies for maximizing resources, and many are seeing gradual increases in their digital revenues. They also expressed concern about their ability to continue to innovate their digital offerings, retain newsroom talent, and maintain and attract readers who recognize the value of supporting high-quality local news.

Follow-up interviews in August 2020 reveal that these challenges have been enhanced by the COVID-19 pandemic. Although many of the news organizations initially saw unprecedented online traffic as audiences sought out local information about testing, infection rates, and closures, they also experienced sharp declines in advertising, event revenues, and print deliveries. Some organizations also faced furloughs, layoffs, and closures. Even so, the need for accurate, credible local information persists, and these outlets remain committed to producing and reinforcing the value of local news.

Subjects

The report is based on 20 interviews with managers and editors at local and regional newspapers in Finland, France, Germany, and the UK, conducted largely in person between December 2019 and March 2020. The countries selected represent different media systems and the chosen newspapers operate according to different ownership models. Although two similarly sized newspapers in each country were chosen, the sample as a whole reflects a range of circulation rates, newsroom sizes, and parent-company assets. Therefore, the challenges and opportunities these news organizations face do not necessarily reflect the realities of all local and regional newspapers.

The local media environments in these countries also feature significant differences, with a heavily consolidated local press operating alongside strong public- and private-sector national news in the UK, dominant regional newspaper companies in France, and robust local and regional newspapers in Germany and Finland. Therefore, comparatively evaluating European local media can reveal diverse challenges, opportunities, and innovations.

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The news organizations included in the report are: Kaleva and Etelä-Suomen Sanomat (Finland), Ouest-France and Nice-Matin (France), Westfalenpost and Main-Post (Germany), and Yorkshire Post and Kent Messenger (UK).

The Yorkshire Post is owned by JPIMedia, which took over the assets of Johnston Press in 2018; the Kent Messenger is owned by privately held regional publisher Iliffe Media; Etelä-Suomen Sanomat is owned by Keskisuomalainen, one of Finland’s largest local and regional publishers; Westfalenpost is owned by Germany’s third-largest publisher, Funke Mediengruppe; and Main-Post is owned by German publisher Mediengruppe Pressedruck. Ouest-France, Nice-Matin, and Kaleva are independently owned.