San Francisco, 2014—With the collapse of the business model undergirding the tradition of muckraking journalism—and the double-digit profit margins it supplied—most newspapers that survived the last five years did so by cutting staff, eliminating coverage areas, and hyping easy-to-report fluff. In the process, many U.S. cities lost their civic watchdogs. After slashing hundreds of journalists, many newsrooms became increasingly frivolous and irrelevant. Witness these lead headlines from the January 2014 San Francisco Chronicle:
Macy’s Fab Fashion Show: Day 6
Perfect Waves for 16th Annual Surf Competition
Man’s Best Fiend: Dogs Snacked on Victims of Nob Hill Double Murder
The San Francisco Public Press survived, however, by throwing out two assumptions deeply embedded in the DNA of corporate media. The first was the notion that newspaper owners had to make a profit. The second was that the journalism had to be subsidized by ads.
These insights helped this relatively new daily produce an increasingly powerful stream of quality journalism, with headlines like these:
City Overpaid $150 Million for Wind Contract, Records Show
Poor Patients Wait Longest in AIDS-cure Rollout
Golden Gate Bridge Workers Warn of Quake Weakness
What our profession discovered is that in the face of technological change, the ad market dried up much more rapidly than did readership. And also that these days, while many readers prefer to skim news sites for a small monthly fee on their iPhones, jPhones, and kPhones, demand for print did not disappear. In fact, as ad revenue plummeted, circulation revenue became an increasingly important piece of the shrinking pie. By 2010, circulation accounted for 40 percent of the average newspaper company’s income, up from 20 percent in the mid-1990s. So, despite the decimation of reporting staffs, newspapers’ loyal and aging subscribers became significant financiers of journalism.
When I first touted the idea of starting a nonprofit, ad-free newspaper in 2008, traditional media mavens were dismissive. Yet, supported by a small group of idealistic journalists and nonprofit professionals in San Francisco, the Public Press evolved from an online-only venture to a multiplatform news organization with a robust Web presence and a thriving print edition.
The Public Press is able to compensate for lower revenues by dramatically cutting production costs. Without ads, our twenty-four-page broadsheet has the same newshole as a sixty-page San Francisco Chronicle, yet costs half as much to print. Because our paper weighs less, we can deploy news carriers on all-weather cargo bicycles, making our delivery operation inexpensive and environmentally friendly.
The key to the Public Press’s business model has been cross-media, content-sharing alliances with other independent and public-media ventures. These include local public radio and TV stations, ethnic and neighborhood papers, and a slew of local foundation-funded, Web-only news providers. Our favorite columns are condensed transcripts of public-radio talk shows on KQED-FM and KALW-FM in San Francisco, dispatches from the staff of the Center for Investigative Reporting in Berkeley, and blog and vlog posts by writers at New America Media, which aggregates the ethnic press. Front-page state, national, and international stories come not only from The Associated Press, but also the nonprofit Christian Science Monitor, National Public Radio, and its statewide radio counterpart, “The California Report.”
Much like the ad-free Consumer Reports magazine, the Public Press is financed by the sale of papers (our print circulation is now fifty thousand on weekdays), supplemented by aggressive local fundraising drives and occasional foundation grants. At $150 a year, a subscription (we call it a membership) costs one quarter of what the Chronicle charges. And the street price of 50 cents can’t be beat. The Chronicle went up to $2 in 2013.