Who will report the news? That’s the question I keep asking as the Mainstream Media continues losing reader share. If digital media — websites, e-zines and blogs — are to take their place, they need to develop a business model that brings in enough advertising or subscription revenue to support the hiring of journalists to gather and package news for an interactive, online environment.
Market research released by Borrell Associates Inc., of Portsmouth, describes the rise of local websites as a competitive force in local media markets. Hundreds of independent websites are making money, some reporting revenues well into the six figures. Some even have been acquisition targets. Said author Dorian Benkoil: “Six years ago everybody was rushing into the local space with city guides. AOL was pursuing Digital Cities, MSN was launching Sidewalk and CitySearch was everywhere. They all retrenched or abandoned the space. But with tremendous growth in local advertising in the past two years, city guides and local independent city sites are back with a vengeance.”
There’s only one problem: The profitable websites shun local news, focusing almost exclusively on “fun and interesting things to do around town.” There is still no viable business model for an online publication that gathers and packages state/local-level news. But it’s a sign of progress to see that any category of online publication is proving to be financially viable. One step at a time… We’ll get there eventually.
