Coronavirus could have local media facing ‘extinction level’ job losses

While the media has played a sizable role in conveying information to the public regarding the COVID-19 crisis, many local outlets could eventually find themselves erased out of existence entirely by the financial strain brought on by the outbreak.

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“There are some people who call it the extinction level event [for news media],” Rusty Coats, media analyst and consultant at Coats2Coats, told KIRO Nights. “For some media companies … it’s not going to be that bad, but it is going to thin the herd quite a bit.”

Coats expects that if the trajectory of the coronavirus continues on its current path, the United States could lose “up to half” of its local news outlets.

We’re seeing the beginning stages of this in the Seattle area, where layoffs and furloughs at Sound Publishing now have just six part-time reporters managing 11 local papers. Meanwhile, The Stranger started asking for donations from readers in March, as advertising revenue from events dried up in the wake of Washington state’s stay-at-home order.

While large national outlets will likely weather the storm, the loss of these local voices could prove catastrophic for an already-strained relationship many have with the media as a whole.

“I’d say that the important part of local news starts with the fact that it is the most trusted news that exists,” Coats pointed out, citing a recent study that found people trust local news far more than national outlets.

“They’re the boots on the ground in your community, covering the things that affect you the most,” he said. “[They’re] not part of this 24/7 spin cycle, [and] not part of anyone’s national posturing — they’re trying to get stuff done.”

As the coronavirus outbreak continues to cripple advertising revenue for local media, Coats sees a tough road ahead.

“It’s going to be really difficult for however long this pandemic lasts,” he predicted.

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That could have larger companies that own several local outlets forced to get creative with how they rebuild, possibly taking inspiration from how public media has managed to survive during this crisis.

“To me, one of the most resilient models out there is public media,” Coats said. “Unlike the newspaper chains, public radio is a bottom-up model, not a top-down model, so they are locally owned. The general managers live there locally; they’re not flying in from corporate here to help, and they are there and have a fairly solid business model, even in this turbulent time.”

“The contingency plan is rebuilding from what is left, and it’s hard to say what is going to be left,” he added.

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