Here’s the local news problem in two numbers: In 2005, U.S. newspapers earned $47.4 billion in print revenue. In 2014, that number was just $16.4 billion. Digital revenue during that period went from $2 billion to $3.5 billion. The latest data points: the Wall Street Journal has announced “substantial” buyouts after reports that the paper is as much as 30 percent below its budgeted revenue. Two of the biggest U.S. newspaper publishers, Gannet and Tronic, are slogging through paperwork en route to a merger. Gannet may be in charge of most of the local reporting in the U.S., but they’ve lost over a third of their market share since the summer.
So Where’s Local News Headed?
Enough with the grim stats. Let’s talk about the newbie startup in my home town: Seattle-based local news startup the Evergrey officially launched today following a six-week beta. I was lucky enough to be included in the beta, and got to attend a potluck on Saturday. There, I heard a great description of Seattle’s rapid expansion: It’s a “city on steroids,” making a hyperlocal news organization that actually keeps its nose to the ground even more essential. I’m a long-time fan of local news startups — “I Want to See Startups Curate Local News” was my first opinion piece for Tech.Co — so I’m happy to say that the Evergrey knocks it out of the park. Their decentralized approach makes sense for a post-webpage era: the Evergrey’s Medium account or Soundcloud page can each serve to deliver the information Satellites need when they need it, though social media or their email newsletter.
Q&A With a Co-Founder
Here’s a quick Q and A I ran with Mónica Guzmán, who, alongside fellow audience-engagement-centric journalist Anika Anand, co-founded the Everygrey: Why would you say there’s a need for the Everygrey (or operations like it) right now? What are the biggest things you’ve changed or learned about the process of making the Evergrey during your beta? Could you share anything about a revenue model you see working out for the Everygrey? One thing that should make 2016 audiences happy about that revenue model: No advertising. As Neiman Lab reported in their write up today, WhereBy.Us “makes no money from display advertising.” Local media can’t be disrupted fast enough.
