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A User-First Framework for Sustaining Local News - Harvard ...

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decision to defend the old model you may be handicapping the new one. And while the<br />

[print circulation] you protect will save the newspaper money, it will not save the<br />

newspaper.”<br />

New Charges <strong>for</strong> New Services<br />

Other experiments involve paid sites providing content and services not available<br />

either in the paper or on the paper’s Web site.<br />

Jim O’Shea, the <strong>for</strong>mer Los Angeles Times editor who now heads the start‐up Chicago<br />

<strong>News</strong> Cooperative, makes a point of insisting that the $2 weekly fee he envisions<br />

charging “is not fee <strong>for</strong> content.” The Co‐op, launched in the fall of 2009, provides<br />

content <strong>for</strong> a regional edition of The New York Times as well as its own Web site, where<br />

stories are freely available to all.<br />

But O’Shea hopes membership in the co‐op will provide sufficient additional<br />

benefits—beyond the news itself—to support the fee he describes as “less than a cup of<br />

Starbucks.” Within five years, he hopes to support an annual newsroom budget of $3 to<br />

$4 million by collecting those two dollars a week from 30,000 to 40,000 people—about<br />

one half of one percent of the population of metropolitan Chicago. But be<strong>for</strong>e he can get<br />

to the stage of seeking those co‐op fees, he says he needs an additional $2 million in<br />

philanthropic help to sustain the operation in the meantime.<br />

The co‐op model is at the heart of an ambitious plan developed by veteran journalist<br />

Tom Stites to create a news service aimed at “less‐than‐affluent Americans” in<br />

communities around the country. Like the Chicago <strong>News</strong> Co‐op, Stites’ Banyan Project<br />

would not sell its journalism but rather the online community services it would create<br />

around the news—its benefits of ownership. Also still in the stages of seeking foundation<br />

funding to get started, Stites hopes <strong>for</strong> a half million shareholders who, at “a dime a<br />

day,” could generate annual revenues of $18 million. 62<br />

The key to the Banyan’s strategy is an approach to news and users that Stites<br />

describes as “relational journalism.” He explains: “It’s the relational approach that<br />

makes possible Banyan’s value proposition—that the less‐than‐affluent Banyan public<br />

will find its journalism relevant to their lives, respectful of them as people, and worthy<br />

of their trust. Consumer co‐op ownership is at the heart of this in that it makes the<br />

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