Local News: Unseen Costs of Closure and Strategic Investment

The enduring value of local news lies not in its print format, but in its unique ability to hold power accountable and foster community resilience. This conversation with Jerry Raehal, Chief Growth Officer of One Press, reveals that the most significant hidden consequence of newspaper closures is not merely the loss of a business, but the erosion of civic infrastructure, leading to increased government waste, corruption, and vulnerability for the most marginalized populations. For community leaders, journalists, and advertisers who understand this systemic impact, the advantage lies in recognizing and investing in local news as a critical public good, not just a media product. Those who grasp this can build sustainable models that serve their communities and create lasting value.

The Unseen Cost of the Empty Newsstand

The narrative around local newspapers often centers on declining print revenue and the struggle to adapt to digital. However, Jerry Raehal argues that this focus misses a far more profound systemic consequence: the decay of community accountability. When local papers shutter, it’s not just a business failing; it’s a vital civic mechanism breaking down. The immediate, visible problem is a loss of advertising and readership, but the downstream effects are insidious. Raehal points to studies from the Federal Trade Commission and the Journal of Financial Economics, highlighting that newspaper closures correlate directly with increased government waste, local corruption, and higher deficits. This isn't just about informing the public; it's about the fundamental checks and balances that prevent local governments from becoming less effective and more costly to taxpayers.

The implication is that local news isn't simply a product to be consumed, but a service that actively improves the functioning of a community. The people most affected by the loss of local news are also the most vulnerable -- the poorest, least educated, and most isolated individuals, as noted by the University of North Carolina’s Hussman School of Journalism and Media. This creates a feedback loop where those who need information the most are the first to lose access, exacerbating existing inequalities and making communities less resilient. The conventional wisdom of cutting costs to survive ignores the fact that the true cost of a newspaper closing is borne by the entire community, often in ways they don't immediately realize.

"If you care about your community, you should advertise in your paper because we know what happens when they close: more government waste, more local corruption, less effective schools, and other serious community problems."

-- Jerry Raehal

Raehal emphasizes that local newspapers are the "heartbeat of the news ecosystem," generating 50% of all original reporting despite making up only 25% of the industry. This statistic underscores a critical systemic dynamic: other media outlets often repurpose content created by local journalists. Removing newspapers doesn't just leave a gap; it hollows out the very foundation of local information, leaving other platforms to report on second-hand news or nothing at all. The competitive advantage for those who understand this is to invest in local journalism not as a charitable act, but as a strategic investment in a healthier, more accountable, and ultimately more prosperous community.

Beyond "Digital First": The Agnostic Path to Audience Connection

A prevalent mantra in the industry has been "digital first." Raehal challenges this, arguing that the real imperative is to be "platform agnostic" and "audience first." The downstream consequence of a rigid "digital first" approach, he observes, is often the abandonment of profitable print editions, only for publishers to realize too late that print was their financial bedrock. This highlights a common failure of conventional thinking: optimizing for a single channel without understanding the audience's diverse consumption habits.

Raehal’s experience shows that people consume newspaper content across multiple platforms -- print, mobile apps, and social media. A newspaper’s true reach is often far greater than traditionally measured. The mistake is to force a print-centric approach onto digital platforms or vice-versa. Instead, the focus should be on delivering quality journalism in the formats that the audience prefers. This requires a flexible, experimental mindset--a trait Raehal values deeply and sees demonstrated by smaller papers. He notes with admiration how some smaller publications are leveraging platforms like Facebook creatively, generating revenue and engagement through authentic content. This is where true innovation lies: not in chasing the latest digital trend, but in understanding and serving the audience wherever they are.

"I think the biggest thing is papers need to be platform agnostic and just deliver their to their audience the quality stuff in the way that that audience reads it."

-- Jerry Raehal

The immediate payoff for being platform agnostic is a more robust and engaged audience. The delayed, but far more significant, payoff is a sustainable business model that isn't beholden to the fluctuating fortunes of any single platform. Conventional wisdom often dictates a pivot to pure digital, but Raehal’s analysis suggests this can be a strategic misstep, leading to the loss of established revenue streams without a guaranteed replacement. The advantage goes to those who can integrate print and digital, social media and direct engagement, recognizing that each serves a purpose in reaching and serving the community.

AI as a Tool, Not a Replacement: Augmenting the Human Element

The advent of AI presents another critical juncture for local newsrooms. While some express outright opposition, Raehal advocates for a pragmatic approach: embracing AI as a tool to augment, not replace, human journalism. He acknowledges AI’s limitations and inaccuracies but highlights its potential to streamline workflows and free up journalists for higher-level tasks. For instance, AI can assist in sorting through notes from lengthy meetings or copy-editing, tasks that consume valuable time.

The immediate benefit of using AI is increased efficiency. A small newsroom, often stretched thin, can use AI to handle more routine tasks, allowing journalists to focus on critical reporting, investigative work, or deeper community engagement. However, the conventional fear is that AI will diminish the quality or objectivity of news. Raehal counters this by emphasizing that AI is imperfect and has limitations--precisely where human journalists can step in. The true value lies in leveraging AI to enhance the core mission of journalism, not to automate it entirely.

"I would like to see AI pay its share for what it's been stealing from us."

-- Jerry Raehal

This perspective highlights a crucial systemic dynamic: AI’s output is only as good as the data it’s trained on and the human oversight it receives. The delayed payoff for embracing AI thoughtfully is the potential for newsrooms to do more with less, producing higher-quality journalism and deeper community connections. The danger of resisting AI entirely is falling behind competitors who use it to gain efficiency, leaving their own newsrooms struggling to keep pace. The competitive advantage lies in understanding AI’s role as a powerful assistant, enabling journalists to focus on the uniquely human aspects of reporting: judgment, empathy, and investigative rigor.

Building Community Through Consistent Connection

Raehal’s work with One Press involves regular sales calls with member publications. These aren't traditional sales pitches to businesses, but rather bi-weekly sessions designed for learning, idea-sharing, and mutual support among news publishers. This approach directly addresses a systemic issue: the isolation of small newsrooms. Many publishers, especially those in smaller communities, are working in silos, unaware of the innovative strategies being employed by their peers.

The immediate effect of these calls is a sense of shared purpose and practical problem-solving. Publishers learn about new revenue streams, such as leveraging Facebook’s creator platform, or effective methods for managing customer relationship management (CRM) systems. The conventional approach of annual conferences often fails because information is presented in a dense, one-off format that doesn't translate into sustained action. Raehal’s model, with its consistent, bi-weekly cadence, builds accountability and embeds learning into the operational rhythm of these organizations.

"I think my hope is, you know, if we can get people to, you know, I go back to what I said a little bit earlier about like, you have some people are late adopters and not things the old ways. Like if we can get people to say, 'Hey, like we can keep the old ways, but we can also approach this in new ways,' then I think we have a success."

-- Jerry Raehal

The delayed payoff of this consistent connection is the creation of a resilient, collaborative network. When publishers share successes and challenges, they collectively build a stronger industry. This is where true competitive advantage is forged: not through individual brilliance, but through shared knowledge and mutual support that allows everyone to adapt and thrive. Raehal notes that many smaller papers are doing "amazing" things, but their isolation prevents these innovations from spreading. By fostering this community, One Press helps its members move beyond merely surviving to actively growing and innovating, ensuring the long-term viability of local news.

Key Action Items

• Prioritize Audience-First, Platform-Agnostic Content Delivery: Shift focus from "digital first" or "print first" to understanding where your audience consumes news and delivering quality content across all relevant platforms. This requires ongoing analysis of readership habits. (Immediate Action)
• Invest in Community Accountability Journalism: Recognize and actively promote the role of local news in holding government and institutions accountable. Frame advertising in local papers not just as reaching an audience, but as supporting civic infrastructure. (Ongoing Investment)
• Experiment with AI as a Workflow Augmentation Tool: Identify specific tasks within your newsroom (e.g., note-taking, initial drafting, copy-editing) where AI can increase efficiency, freeing up journalists for higher-value reporting and analysis. (Immediate Action)
• Foster Peer-to-Peer Learning Networks: Establish or participate in regular, structured forums (like bi-weekly calls) for news publishers to share best practices, revenue ideas, and operational challenges. This combats isolation and accelerates innovation. (Ongoing Investment; Pays off in 6-12 months through shared insights and implemented strategies)
• Re-evaluate Print's Role Strategically: Instead of viewing print as a legacy cost, assess its unique value proposition for revenue and audience reach. Explore models like e-edition-only options for public notices to reduce print costs while retaining revenue streams. (Immediate Action, with potential payoff in 12-18 months through cost savings and model flexibility)
• Develop a "Work on the Business" Cadence: Actively schedule time for strategic planning and business model innovation, rather than solely focusing on daily operations. This might involve dedicated "think time" or structured sessions like Raehal's member calls. (Immediate Action; Long-term payoff in strategic foresight and adaptability)
• Diversify Revenue Streams Beyond Traditional Advertising: Explore and implement emerging revenue models, such as branded content networks, platform creator programs (e.g., Facebook), and membership initiatives, drawing inspiration from successful smaller publications. (Ongoing Investment; Pays off incrementally over 6-24 months)