Our view | Newspapers should be included in stimulus efforts
Published 5:00 am Saturday, April 25, 2020
- The East Oregonian newspaper runs into the folder at the production plant in Pendleton.
As the world has been divided into essential and nonessential businesses, local newspapers providing credible information in this public health crisis fall firmly into the essential camp.
The industry is facing an unusual paradox, however. Some essential businesses, such as grocery stores, telecommuting software companies and manufacturers of medical masks, have seen increased revenues as demand for their products spikes. But while the appetite for local news is at a high, newspapers across the country have been forced to lay off a significant percentage of their staff and cut salaries, or in some cases close altogether.
From a revenue standpoint, it doesn’t matter how many thousands more people are viewing a story on a newspaper’s website if the newspaper is removing the paywall from stories with important public health information about COVID-19, and no one is willing to buy advertising to go with it. In a time of canceled events, closed businesses and economic uncertainty, advertising is one of the first line items organizations cut from their budget.
This confluence of the need for credible local news and plunging revenues for the companies reporting that news means Congress must make sure newspapers are included in stimulus efforts.
The Paycheck Protection Program, which received a refill after the president signed a $484 billion bill Friday, allows chain restaurants to count each individual restaurant as its own “small businesses” for the purpose of qualifying for a forgivable loan to cover payroll, rent and utilities. When the fund gets refilled, Congress should provide affiliation waivers for newspapers, allowing local newspapers owned by larger parent companies, such as Gannett/Gatehouse, to qualify as a “small business” too. Those newspapers may have a larger parent company, but they are still expected to support themselves through local advertising and subscription revenue.
Community members are getting information about COVID-19 testing, local cases, closures, cancelations, resources for the newly unemployed, grants available for businesses, opportunities for free internet access for students, food giveaways and other crucial updates from news outlets, which often have a far greater reach into peoples’ homes than a government agency’s website. That’s a vital public service that needs to continue.
In addition to affiliation waivers, Congress should look at other grant options that will help newspapers weather this storm. Federal, state and local governments also need to set aside advertising dollars to put out public service announcements through newspapers and other local outlets. If the state of Oregon can pay Facebook and Twitter to put sponsored “Stay Home, Save Lives” posts into your newsfeed, they can pay Oregon businesses that are helping give Oregonians the specific local and statewide information they need to stay safe.
News outlets were already doing “more with less,” and now they’re being forced to do less with even less. That hurts everyone. Call or email your federal and state elected officials and ask them to provide the rule change, grants and advertising dollars necessary to protect a vital public service.