From the Newsroom

28 years for the CV Independent – but what is the future of regional newspapers?

September 14, 1994, and the Lower Clarence Review is born.

An expansion into Grafton some years later saw the newspapers name change to the Clarence Valley Review and finally to the Clarence Valley Independent.

This month marks our 28th birthday and we are still here, albeit through a few trials and tribulations, not the least of those being the Covid pandemic and the subsequent fall in advertising revenue through the continued growth of social media and website-based advertising.

The Clarence Valley Independent has survived to this point, unlike dozens of regional media outlets.

The Public Interest Journalism Institute (PIJI)

According to Australian based organisation, The Public Interest Journalism Institute (PIJI) “The onset of Covid 19 and other upheavals in the Australian news media landscape have unveiled the rapidly diminishing production of public interest journalism in Australia, particularly in coverage of our councils, parliaments and courts. PIJI research shows regional and rural communities have been most adversely affected, with emerging local news gaps in print and online at the forefront of concern”.

The Australian Newsroom Mapping Project was established by the PIJI to gauge the health of Australia’s news industry. As result the Project has identified 157 newsrooms that have closed temporarily or for good since January 2019.

This means effectively that there are 157 communities, big and small across Australia, left without a local newspaper. Of perhaps more concern is there have been over 200 contractions in newsroom operations since March of this year, meaning less resources to cover local news. 

The Enquiry

The Federal Government has acted and established an enquiry into the situation.

On the 22 December 2021, the then Minister for Communications, Hon Paul Fletcher MP asked a Committee to inquire into and report on the health of Australia’s regional media. 

The Committee inquired into the provision of newspapers (print and digital) in regional and remote Australia.

The Committee considered:

  • The impact of decisions in a number of markets in regional and remote Australia by large publishers such as News Corp and Australian Community Media to suspend publication of print editions
  • The extent to which there has been entry into these or other markets by new operators, particularly small businesses
  • The impact of the News Media Bargaining Code for regional and remote newspapers
  • The degree to which there has been economic recovery in regional and remote markets from the impacts of COVID, and whether this has led to advertising revenue improving.

The Committee made a total of 17 recommendations, including the Australian Government review government advertising expenditure across all departments and agencies with a view to ensuring a minimum of 20 per cent of government print advertising is placed in regional newspapers.
This should be part of long term advertising contracts that provide certainty of income for regional publications.
The Committee expects this measure to be cost neutral and able to be implemented within 12 months.
An independent process should be established to select the newspaper outlets eligible to participate in the print advertising program.

Background information

In December 2017, the Australian Competition and Consumer Commission (ACCC) was directed to consider the impact of online search engines, social media and digital content aggregators on competition in the media and advertising services markets.

The ACCC tabled its final report in July 2019 making 23 recommendations, most directed at enhancing competition, improving consumer protection, ensuring privacy and undertaking media regulation reform.

Some recommendations were targeted at regional Australia, including a new program of direct grants and the development of a voluntary code to address bargaining power imbalances between parties. The Government responded to the recommendations of the report in December 2019.

Since then, the emergence of COVID-19 has magnified the important role of credible and up-to-date news and there has been an increase in news consumption:

Trust in news increased globally over the past 12 months, in Australia trust in news has risen to 43%, close to the global average (44%). The improvement in trust likely reflects the public’s greater reliance on news in a crisis, and the active dissemination of official health advice by news outlets during the pandemic…However, the peak in trust associated with news reporting about COVID-19 at the start of the pandemic (53%) has not been sustained.

In its digital platforms inquiry report, the ACCC stated that the closure of Australian and local newspaper titles between 2008-09 and 2017-18 resulted in a 15 per cent net total decline in regional newspapers. Emerging from these closures were 21 local government areas without a single or regional newspaper, 16 of which were in regional Australia. There were 106 closures over the period, with 85 per cent of these related to titles owned by major national media publishing groups.

However, the Public Interest Journalism Initiative (PIJI) said that there were 400 changes in two years, which included both market growth and market contractions:

Recent events which have included bushfires and COVID-19 have exposed news’ vulnerability … COVID-19’s economic shock has dried up remaining advertising revenue from sectors such as tourism, hospitality and entertainment, resulting in a significant reduction of Australian news production as tracked by PIJI’s Australian Newsroom Mapping Project (ANMP). The map has recorded more than 400 changes in three years, two thirds of which are market contractions – a sharp acceleration from previous ACCC data that showed 106 news closures over a 10-year period (2008-18). PIJI research prior to COVID-19 had also suggested declines in coverage of local government.

Newspapers in both regional and metropolitan areas have experienced significantly declining revenues for more than a decade. For example, during the 1980s and 1990s the industry encountered a major restructure and consolidation which resulted in the discontinuation of all metropolitan afternoon newspapers and a decrease in the number of titles to less than a third of 1984 figures. In addition, between 1984 and 2011, newspaper circulation dropped from 29 newspapers per 100 persons to around 12.

The Department of Infrastructure, Transport, Regional Development and Communications (the Department) said that since 2010, real revenue had declined at an average rate of 7.45 per cent each year, which represented a total decline of approximately 57.8 per cent from $5.75 billion in 2010 to $2.5 billion in 2021. The Department said that this was likely to continue:

Revenues are projected to continue declining over at least the next four years, with the impacts of the COVID-19 pandemic further exacerbating these pressures.

The closure of local newspapers has left members of the public that previously relied on print media for their news feeling mistrust and unattached to their communities. Closures have also resulted in job losses in regional Australia, including editorial roles:

Staff numbers for many digital natives have fallen recently as these companies grapple with similar financial challenges to those facing traditional media businesses. In January 2019, BuzzFeed Australia cut 11 of its 40 staff as part of an attempt to ‘reduce its overall news footprint’. This was part of a global round of job cuts that affected BuzzFeed and other digital natives including The Huffington Post.

The ACCC found that the rise of the digital platforms contributed to the continuing decline in advertising revenue. The impact of this reduction in advertising revenue is most evident in relation to local and regional news providers, which do not have the large potential audience of metropolitan and national titles. New digital-only publications have not replaced traditional news services and many news media businesses are still searching for a viable business model for the provision of journalism online.

In May 2021, RMIT and Deakin University released findings of a survey of 4,200 Australian country newspaper readers. Of those who participated, 71 per cent preferred to read their newspaper in print, and 86 per cent of respondents considered print copies of local newspapers an essential service for the community. In addition, 94 per cent of respondents wanted a larger say in the government policies and decisions affecting the future of local newspapers.

This survey also expressed the strong demand for printed product in rural and regional Australia, with most of its audiences, which include younger generations preferring a printed newspaper. Country Press readers are ‘2.6 times as likely to read their local paper in print than in digital format.’

In March 2021, the Australian Government implemented a mandatory code, the News Media and Digital Platforms Mandatory Bargaining Code, to support with the stability of public interest journalism in Australia by addressing bargaining power imbalances between digital platforms and Australian news businesses.

The issue raised in State Parliament

This month in an attempt to highlight the current situation, Shadow Minister for Local Government and Western Sydney, Greg Warren MP, called on the NSW Government to better support rural and metropolitan media outlets to ensure they not only survive, but also thrive.

Mr Warren has moved a notice of motion in the Legislative Assembly noting the House:

  1. Acknowledges the important role metropolitan and rural media play in informing communities
  2. Recognises the challenges facing media outlets – particularly in regard to the transition from print media to a more digital media focus
  3. Urges the Government to support and nurture metropolitan and rural media through this ongoing and significant changing landscape

Mr Warren said the greater focus on digital content as well the impacts of COVID-19, had placed a tremendous strain on many newsrooms throughout the state.

What our local leaders say

The Clarence Valley Independent asked a number of questions of Clarence Valley political representatives:

  1. Can you comment on the NOM moved by Mr Warren and what are your thoughts on his points?
  2. Do you have any comment on the decreasing use of regional newspaper for all levels of government (and their departments) advertising?
  3. And whilst it is reasonable suggest there may be a preference in this day and age for digital based advertising, it must be noted that most print media today also have a sophisticated digital presence with their own website and social media platforms, and still advertising with these publications continues to fall?

NSW Member for Clarence Chris Gulaptis provided the following observations:

“All media outlets, regardless of their size of stature, play a vital role in ensuring their communities are well informed about all issues,” he said.

“They also ensure those elected to public office are held accountable for their actions as well as their inaction – something I fully support and welcome.

“COVID-19 as well as a greater focus on the digital media, has taken its toll on many publications who are really treading water.

“It essential for all communities to have strong and healthy publications at a local level, a regional level, a state level and a national level.” 

Federal Member for Page, Kevin Hogan said:

“Regional newspapers, such as the Clarence Valley Independent, are an important part of our community. They deliver news, campaign for important projects and tell stories of extraordinary people. There are people who still rely on print to receive their news.

I have always advocated for increased Government advertising, especially during the recent downturn through COVID-19. This included securing funding through the $50 million Public Interest News Gathering program, and the Regional and Small Publishers Innovation Fund. I also personally advertise with all local papers through my office.

I encourage the State and Federal Government to continue programs such as these, and to make sure Government advertising is well represented in rural and regional areas.”

Clarence Valley Council General Manager, Laura Black, responded:

Clarence Valley Council would like to congratulate the Clarence Valley Independent on its 28th anniversary.

It is a notable achievement to provide a consistent, quality weekly paper for our community which has continued for that span of time.

The Council has been a strong supporter of the Independent newspaper since its inception.

Currently council spends around $50,000 annually with the local paper.

We understand and value the contribution of the newspaper to our community.

Council has and will continue to support the Independent by advertising key messages to the community through our weekly banner ads and through other advertising and promotion such as the Bulky Waste Collection services and events at the Grafton Regional Gallery.

Print media, like all forms of media are important in this day and age. Combined they meet different target groups. However, the advance of alternative and additional mediums does not necessarily correlate with increased budgets and Council seeks to spread its advertising dollar across the various media mediums to reach the broadest population possible.

Council is acutely aware of the economic impacts of the past few years from COVID -19, Bushfires and floods and that the effects of these events are being felt right across our community, local business and industry.

Meanwhile Clarence Valley Mayor, Dr Ian Tiley provided the following statement:

I concur that there has been a rapidly diminishing production of public interest journalism in Australia. This has especially been manifested in the reduction in print media and the prominence of the 24-hour news cycle.

This change has particularly impacted rural areas and especially those not using technology, primarily our older Australians.

I strongly support the move by Greg Warren MP, for better support of rural and metropolitan media outlets to ensure they continue. It is vital that all in our rural communities are kept well informed and that there is adequate recognition of the continuing vitality of especially rural print media.