Time is running out to save local news
Author: David Chavern, President and CEO, News/Media Alliance
Time is Running Out to Save Local News
Local journalism is a cornerstone of democracy and a vital source of information for communities across the country, with newsrooms covering local politics, high school sports, local business openings, cultural events, and other matters that help a community remain vibrant and connected. But the industry is facing an existential crisis because of the unyielding power of Big Tech platforms such as Google and Facebook.
With less than four weeks left in this Congress, now is the time for the Senate to pass the Journalism Competition and Preservation Act (JCPA) (S. 673 and H.R. 1735). The JCPA was favorably reported out of Committee on September 22 with strong bipartisan support and now must head to the floor for a vote. The JCPA will hold tech giants accountable and provide a necessary lifeline for local papers, requiring Big Tech to compensate small and local outlets for the use of their content.
Big Tech benefits tremendously from journalism content, yet they refuse to pay local publishers fairly for the journalistic content that fuels their platforms. As a result, local papers are being replaced by tech platforms using black box algorithms designed to keep users inside their walled gardens – all while charging exorbitant ad fees – up to 70 percent of every advertising dollar.
Since 2000, U.S. newspaper circulation has dropped by half, with 31 million fewer daily newspapers in circulation in 2020. The vast majority of U.S. counties with no regular newspaper – "news deserts" – are in rural areas. Despite record audiences, since news outlets transitioned to digital, revenue has drastically declined.
The tech giants have built their empires by profiting off the hard work of journalists without fairly compensating them. And as local publications struggle to stay afloat, Big Tech has only doubled down on their anticompetitive practices, further consolidating their control over the flow of information.
This is fundamentally unfair, and the JCPA will bring about much-needed change.
The JCPA will benefit small and local publishers exclusively and impose severe penalties if the tech platforms do not negotiate with them in good faith. The bill has a limited scope of six years to address a broken marketplace, while the broader competitive landscape is fixed through other legislat
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