It’s not news that the Australian news media is on the ropes. Some would say it’s going down for at least the second time.
The big media organisations are buffeted by billionaires while a valiant group of independent news publishers tries to survive while fighting dwindling ad revenues, a news-avoiding public and a potential killer punch from Meta, which is threatening to kick them off Facebook.
Minister for Communications Michelle Rowland told publishers at the Local and Independent News Association (LINA) Summit in Port Douglas this month that the federal government has their backs.
Rowland said the government’s News Media Assistance Program (News MAP) would support independent news publishers in filling the vacuum after the legacy media closed or downsized hundreds of newsrooms. The minister’s assurance came as the Public Interest Journalism Initiative’s (PIJI) Australian News Data Report found contractions in the news industry outpace expansions.
A handful of independents including Crikey, Schwartz Media and Solstice Media are doing well but the majority of independent news platforms are serving their communities with vital information while barely making a living.
Newsroom closures continue
PIJI has recorded 323 contractions and 171 expansions of newsrooms since January 2019, with a net change of minus 152.
Independent news publishers are stepping up and starting up, but as advertising increasingly goes overseas to social media companies and search engines, the reality is most can’t survive without government support (through tax law changes and funding) to survive.
Rowland told the LINA summit the federal government “understands helping sustain a diverse and independent media landscape is vital for our democracy”.
Hang on, help is on its way
The federal government is already funding LINA and PIJI, but exactly what further help the government might offer remains to be seen.
There’s hope that media platforms set up as charities might be made eligible for Deductible Gift Recipient (DGR) status. This would be a game changer because philanthropy could then become a major support as it is for not-for-profit news in the US and the UK.
Tax breaks are a key legislative change LINA has pushed for. A fairly new peak body, LINA represents 67 publishers producing 108 mastheads and is proving to be a player in the media sector and to have the ear of the Albanese government.
LINA executive director Claire Stuchbery has a background in community broadcasting, so she’s all about the independents. She blends pragmatism with optimism when it comes to the future of the Australian news media.
“The number of newsrooms operating across Australia has been in decline for over a decade now,” Stuchbery said.
“It’s absolutely a challenging environment for local news providers to operate in and many have closed their doors.”
Reason for optimism
“What we’re also seeing and what I feel optimistic about, is the emergence of newsrooms driven by community-minded people who are stepping into the void.”
Stuchbery said community and government support is critical to whether new independent newsrooms survive.
“If we can get some financial and policy-based support into grassroots journalism embedded in the communities it serves, I believe we can curb the trend of closures, if not reverse it,” she said.
Meta may pull the plug
As they wait for government support, independent publishers are seeking new ways to reach their audiences as social media looks more and more precarious.
Meta is threatening to deactivate Facebook news accounts and is believed to be already using algorithms to divert readers and avoid paying for news content. The social media giant has already banned news accounts on Facebook in Canada and says it will do the same here if the federal government “designates” Meta, which means forcing it to negotiate payment for news.
While they wait nervously for the outcome, many Australian news publishers are turning to email newsletters to reach readers, a model that’s been particularly successful for Mumbrella.
There’s an app for that
One news outlet at the LINA Summit, The Wanaka App, is bypassing social media with a successful app designed to deliver news directly to subscribers on their phones.
Developer and publisher Tony O’Regan says the Wanaka App (based in New Zealand) is a profitable news platform employing two publishers, an editor and 1.5 journalists. The app’s team developed the iApp Network for other news publishers and sells it for around A$6,000.
O’Regan says it’s the only platform of its kind in the world because it’s designed to publish hyperlocal news and has built-in spaces and functions to book and display advertising.
The app uses notifications so users know throughout the day when new content has been published.
Other lifelines available through LINA to independent news publishers include collective fundraising and advertising campaigns and impact tracking programs.
LINA hopes by pivoting to new business models using the latest tech and receiving government and philanthropic support, the independent news industry might survive.
Need for local news continues in climate change era
“The need for local news hasn’t changed,” Stuchbery says.
“People need to know what’s going on internationally, nationally and within their state.
“They also need to know what’s happening in the area that directly affects them, particularly in times of crisis like the COVID-19 pandemic and more recently in climate-based emergencies such as floods and fires.”
This was evident when Cyclone Jasper smashed the Far North Queensland tourist towns of Port Douglas, Mossman and Ellis Beach in December last year. Following the closure of the Port Douglas and Mossman Gazette, local news publisher Newsport was the only media outlet giving local residents regular and, in some cases, life-saving news updates.
Inquiry into social media pulling the rug out from under news
This week the federal government announced a parliamentary inquiry into social media and Australian society. The terms of reference look at Meta abandoning deals to pay for news, the role of Australian journalism in countering misinformation digital platforms, and the algorithms used to influence what we see.
The recommendations might give the government some ammunition to give Mark Zuckerberg a tiny bruise from pebbles thrown by a small Australian player on the global market. The reality is the Australian news media is in a David and Goliath battle with social media and search engine giants for survival.
It’s going to take more than an inquiry to save small players such as my independent digital news magazine and other minnows like me.
A lot more.
