Time for new thinking on support for local news

Declining ad revenues and social media disruption necessitate urgent policy intervention to sustain local news reporting.

David Kennedy · Venture Insights22 March 2024Period: March 20244 min read

94↓

Total net decline in Australian news outlets (to Dec 2021)

69↑

Regional masthead or station closures (to Dec 2021)

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Abstract

This report analyses the structural decline of local news media in Australia and New Zealand, driven by the migration of advertising revenue to global search and social media platforms. Data from the Public Interest Journalism Initiative (PIJI) reveals a net loss of 94 news outlets across Australia between 2019 and 2021, with regional areas bearing 77% of these closures. The brief argues that current episodic support is insufficient and calls for a new, ongoing policy framework to protect democratic participation.

Key Takeaways

Regional Australia suffered a net loss of 72 news outlets during the pandemic period ending December 2021.
Social media platforms like Facebook and Google have captured the local advertising revenue previously used to fund news gathering.
Meta's refusal to renew news agreements creates an urgent need for enhanced government policies to support local reporting.

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Frequently Asked Questions

The Australian news landscape experienced a net loss of 94 outlets between 2019 and 2021. Regional areas were hit hardest, accounting for 77% of these total closures.

Structural revenue migration to global platforms like Google and Facebook has decapitalized local news gathering. This shift resulted in 69 regional masthead or station closures by the end of 2021.

Current support remains episodic and insufficient for long-term stability. While the Federal Government provided $15 million for newsprint costs in 2022 and $12 million for community broadcasting in 2023-24, these grants do not replace the permanent loss of commercial advertising revenue.

The crisis is a trans-Tasman trend, evidenced by the total closure of the NewsHub newsroom in New Zealand. This follows the pandemic-era loss of 72 regional news outlets in Australia, signaling a systemic failure of the traditional local news model across the region.

Time for new thinking on support for local news

Abstract

Key Takeaways

Frequently Asked Questions

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