Individual, entrepreneurial journalists are making big splashes on the newsletter subscription platform - at least to begin with - as regional journalism is crying out for innovation
Edinburgh, United Kingdom
One of the leading lights in UK local news over the past few years is Mill Media. The newsletter-first startup launched in 2020 on the subscription platform Substack covering Manchester, with a vision for quality-first local reporting.
"I had this feeling for a while that you could do a small-scale subscription-funded media company if you focused on quality with a really small team, and you tried to differentiate hard from what was out there already," founder Joshi Hermann told Journalism.co.uk in 2022.
Its audience growth, Substack local news grants and investment from news veterans helped the model expand into other UK metropolitan hotspots; Birmingham, Sheffield, Liverpool, Glasgow and London. Its model has inspired other similar, entrepreneurial efforts within UK local news.
There are trade-offs when working on Substack, though. Publishers part with 10 per cent of subscription revenue, in exchange for removing a tech burden. Hermann has always insisted that it was worth it starting out, plus he always had the assurance that he could export the mailing list because The Mill owns it.
And so he did. Mill Media recently departed Substack for newsletter rival Ghost, which charges a flat fee instead of a percentage of revenue. Hermann said that makes more economic sense in the next phase of the publication's growth. And there are other examples of newsletter creators making similar moves.
Substack is a great option for those experimenting with local news, without it having to be a long-term fix.
This is put best by media consultant Isabelle Roughol on her LinkedIn: "The same features that make Substack amazing when you start (no upfront costs, basic template, network effects) make it super limiting when you grow (expensive cut of revenue, no site customisation, zero brand differentiation). I continue to recommend Substack to people starting out with zero capital or just testing the waters, especially if they never intend to charge and build a business."
But if you are considering a Substack newsletter for yourself - especially within local news - a Substack masterclass webinar this week (23 September) offered firsthand tips and advice from current innovators in this space.
Will Hayward is an investigative journalist, who wrote a politics newsletter for Reach plc title Wales Online, to explain and demystify Welsh politics. The Will Hayward Newsletter grew to 2k free subscribers within 10 months, and this week he decided to go on his Substack newsletter full-time. Will's tips include:
Michael MacLeod runs two Substack newsletters, The Edinburgh Minute (14k free subscribers) and The London Minute (2k free subscribers), curating all the best local news in the area in one helpful digest. They arrive in the inboxes every day at 7 am. Both are free with an option for readers to pay to support the titles.
The reason why newsletter providers have been so influential within UK local news might have something to do with the issues facing the sector, reasons Jonathan Heawood, executive director of Public Interest News Foundation (PINF).
Its annual PINF Index, a study into the UK independent news sector, revealed that 4.7m Britons live in news deserts (defined as areas without dedicated local news coverage).
The UK also battles a lot of broader problems as outlined in this year's Reuters Institute Digital News Report: low levels of trust towards the media (36 per cent), high levels of news fatigue (38 per cent) and low willingness to pay for news (eight per cent).
"It's fair to say Britain is not in love with the news media," says Heawood, suggesting that newsletters address many of these pain points by showcasing personalities, with its format and mode of delivery, and there is usually at least some level of free content available to consume.
A common complaint against traditional local news organisations is they have become "broad but shallow", not properly representing the communities they serve. Newsletters - especially those run by independent organisations and journalists - by contrast, are "deep but narrow", offering local expertise, voices and, as a result, more immediate value.
The PINF study also finds that 71 per cent of independent news organisations publish a newsletter, which correlates slightly with increased levels of revenue generated. That being said, just two per cent of total revenue across the whole sector comes from newsletters.
"Having a newsletter is a good part of a revenue mix for an independent news organisation," he says. "It's a small but growing part of the sector."
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