The value of local news: Unpacking dynamics of local newspapers’ value creation for audiences and society

Abstract

This dissertation examines how local news organizations aim to create and capture value in their two-sided market, how audiences perceive the value of the local newspaper product, and how these dynamics of supply and demand affect the value that local newspapers create for society. Using the implementation of online paywalls as a catalyst, which exposes the strength of the audience-newspaper relationship, I examine local newspapers’ value creation from a social responsibility, a business and an audience gratification perspective and identify areas of overlap and conflict between the different value perspectives. I investigate these areas empirically using a mixed method research design combining interview data, survey data and web site traffic data. Based on the empirical findings in the dissertation’s five articles (Part 2) combined with the theoretical perspectives discussed in the dissertation’s introduction chapters (Part 1) I develop an analytical model capturing value flows and value flow gaps between local newspaper organizations, audiences and society. Based on the empirical findings, I argue that local newspapers maintain an important role as information sources, as integrators in local communities and as arenas for local public discourse. However, challenges of pluralism, payment and personal interests among audiences stimulate detachment from local journalism, particularly among younger audiences and people with lower income and education. The findings encourage more research emphasis on understanding what makes local journalism valuable for people rather than what should make it valuable from a normative standpoint. They challenge the industry to bridge the gap between value proposed and value perceived among audiences to sustain a business increasingly dependent on user payment. For media policy, findings suggest that supply measures alone might not be enough to stimulate actual use of local journalism in a high-choice media landscape.