Eulogies for local news may have been premature.
What happened: Northern Ontario news publisher Village Media will open new publications in 15 U.S. communities across three states after receiving a US$5 million investment from Knight Foundation — a U.S. philanthropic organization dedicated to funding local journalism.
Catch-up: During what’s been — broadly speaking — a dire time for local Canadian journalism, Village Media has been a quiet success story. It’s carved out a prosperous ad-supported business model by serving highly engaged small-to-medium-sized cities. It now operates 32 outlets, and hasn’t closed a single Canadian one since launching in 2013.
Unlike sites that use paywalls or programmatic advertising, it sources a diverse and curated range of ads, with 70% of revenue coming from local advertisers.
The company is also tech-forward: it licenses the tech that runs its platforms to 120 other sites and operates a Reddit-like forum on its sites called Spaces to promote community engagement.
Why it matters: Per the Local News Research Project, 613 local news outlets have closed in Canada since 2008 across 391 communities. According to another study, these closures have left 2.5 million Canadians deprived of local news options. The Village Media model is proof that local news can still grow, and even make money, under inhospitable conditions.
Zoom out: There are other signs local journalism might be making a comeback. Torstar and Metroland brought back print editions of four local papers this year; newsletter groups like Lookout Media are growing in popularity; and next month, the biggest name in news, The New York Times, is launching a local newsletter pilot in Minnesota’s Twin Cities.—QH
