When you woke up this morning, did you reach for your phone? Scroll through Facebook or Twitter to catch up with what happened overnight? Hit “Like” on a meme? You’re not alone; 71% of Americans report getting at least some of their news from social media platforms. Gone are the days when the paper boy hurled a print edition at your doorstep. 

The past decade and a half has been marked by a dramatic transformation in how people consume news and information. As the internet became ubiquitous and social media platforms dominated, our attention shifted online — and so did advertising. Facebook, Google and Amazon alone now account for more than 64% of all digital advertising, meaning less and less for other media outlets. Most dramatic has been the drop in ad revenue for newspapers, which plummeted from $37.8 billion in 2008 to an estimated $8.8 billion in 2020. 

The loss of ad and subscription revenue has had a devastating impact on traditional newsrooms. In the United States, over 2,100 newspapers, the majority local weeklies, have shuttered in the last 15 years. Newspapers have cut staff by more than 50%, and more than 200 counties across the country live in a “news desert” with no local news source at all.

Source: Hussman School of Journalism and Media. The News Landscape in 2020.

COVID further exacerbated the problem even as local information about the pandemic was urgently needed. Many of the local businesses and events that still advertised in local publications were closed or cancelled, and many papers had to cancel print editions and lay off or furlough workers. To date, more than 90 local newsrooms have shuttered as a result of the pandemic. This is particularly damaging as newspapers produce 60% of local news stories — more than television, radio and digital-native websites combined.

This diminishing access to quality news and information has real consequences in terms of public accountability, civic engagement and social cohesion. 

Public Accountability. An essential function of local news is to hold government and corporations accountable. Think of the role local news played in bringing the water crisis in Flint to light, or how a journalist's dogged reporting was responsible for exposing Theranos. In fact, when local news shutters, government costs increase. Counties that lose a newspaper can expect to see a “median rise in government salaries of $1.4 million, an average tax hike of $85 per capita, and an average deficit increase of $53 per capita.” Without that beat reporter sitting in the front row of a city council or Board of Education meeting, a controversial decision can become a done deal before the community even knows it’s happening.

Lower Civic Engagement. The links between media and civic engagement have been well studied and have found across the board that as local news erodes, civic engagement declines. In a review of numerous such studies the Democracy Fund concluded that,“Loss of local news leads to lower civic participation, lower voter turnout in elections, fewer people running for local office, and less oversight of those in power.” 

Increased Polarization. Quality local news builds community and social cohesion by “narrating the life of a place and its inhabitants, telling the daily stories that form the basis for shared communal experience.” As local news outlets close, the information gap is often filled with national news, which tends to report through a more partisan lens and has shown an increase in polarization. One national study showed that voters were 1.9% more likely to vote for the same party for president and senator after a newspaper closed in their communities compared to voters from similar areas that retained a local paper. “While 1.9 percent may not seem like a lot, it’s often enough to win an election. For example, in 2018, the U.S. House races in Minnesota’s 1st district, Utah’s 4th district, and Illinois’s 13th district were all decided by less than that margin,” the authors note. 

This disruption in the media ecosystem has now led to a period of experimentation. New revenue models that reckon with the reality of a digital age are being tested, and journalism is becoming more participatory and inclusive of voices historically marginalized in the media. A new sector of nonprofit media has blossomed and is optimizing for trust in how they do their reporting.

Philanthropy has a key role to play during this period of innovation and risk taking, to reimagine how journalism and media can serve the public interest while remaining financially viable.  For this theme, Battery Powered will focus on the following question:

How can we support a vibrant, diverse ecosystem of quality news and information?

We have identified three areas where philanthropy has an important role to play and where Battery Powered funding can make an impact.

	Local News. We have information coming at us 24/7 — but what’s missing is quality, verified news of what is happening in our own backyard. A growing field of nonprofit newsrooms and institutions that support them have helped fill the void. With new modes of reporting and fact-based storytelling, they are ensuring people are informed about local issues and solutions.
	Investigative Journalism holds the powerful accountable. Its impact can be enormous, but it is an especially time intensive form of journalism that can require an investment of resources over many months. As a result, investigative reporting has been particularly hard hit by cuts the past 15 years, and dwindling resources have left it more vulnerable to legal threats by those in power.
	Underrepresented Voices. A lack of diversity among newsroom editors and reporters has a profound effect on what stories are covered and how they are presented. It also leads to mistrust of the media, as stories fail to reflect communities' realities. We can support diversity, invest in media led by and serving people of color, and embrace different forms of storytelling that honor a community’s culture and meet their information needs.

Paths not taken. This theme will not directly address the critical issue of misinformation. The complexity of this issue and the current state of work made Battery Powered, a funding entity that focuses on a topic for only a few months, less suited to making wise investments. Many worthy organizations and funders, including the Hewlett Foundation, Stanford Cyber Policy Center, Harvard’s Shorenstein Center, and the Democracy Fund are addressing this formidable problem. For now, investing in bolstering trusted local and investigative media felt like a solution better suited to our funding scope and timeline. And in fact, a key part of combating misinformation is increasing access to compelling and powerful quality news and information, which Battery Powered is well positioned to do.