At the community level, an average of five local newspapers are closing every two weeks|chrismetcalfTV|CC BY 2.0
Journalism is facing challenging times in recent weeks. Major newspapers like The Washington Post and The Los Angeles Times laid off 20% of staff due to financial difficulties. Cable news ratings have also fallen, impacting revenues.
At the community level, an average of five local newspapers are closing every two weeks, according to Northwestern University’s Medill School—leading to the rise of “news deserts” in over half of all American counties.
Magazines aren’t immune either. Uncertainties are affecting publications like Sports Illustrated, Pitchfork, Conde Nast and Time, with unionized workers organizing protests in response to layoffs.
Streaming services and a declining theater crowd have also impacted media conglomerates, leading to layoffs at Disney, NBC News, CNN and Paramount this month.
Not just this year, 2023 saw the most media job cuts in the last 20 years, outside of recessions.
Why?
Several factors contribute to the news industry’s struggles, including news fatigue, increased reliance on social media and challenges in advertising revenue.
Companies are allocating more advertising budgets to big tech platforms like Instagram and Google, making it challenging for traditional news sources to generate revenue. The internet is also becoming less reliable in referring readers to traditional news outlets.
Interestingly, local television news stations seem to be in relatively better shape compared to local newspapers.
A 2022 Gallup and Knight Foundation survey revealed higher trust in local news sources than in national media organizations.
Some media outlets, like The New York Times, The New Yorker and The Boston Globe, have found success in attracting digital subscribers.