End of an Era

Over the weekend, the news that Baguio Midland Courier will cease its operations on July 22 this year spread over the social media over the weekend. That’s after 77 years of being published. It was 2021 all over again when Sunstar Baguio also ceased its operations after 30 years.

It got me thinking about what could be the economic implications of the closure of printed newspapers, which may be directly on the media industry and indirectly on the broader economy.

First is job losses. The most immediate effect is on journalists, editors, photographers, and other newsroom staff. Jobs in printing presses, paper supply, and distribution networks (like delivery personnel) are also affected.

Next is Advertising Revenue. Print newspapers have traditionally relied heavily on advertising revenue. As they close, advertisers shift their spending to digital platforms, often at a lower cost per impression. Local businesses that relied on printed newspapers for advertising may struggle to find equally effective alternatives.

It may have indirect economic impacts, as well. First on Local Economies. Local newspapers often support small businesses by providing affordable advertising and publicity. Their closure can make it harder for these businesses to reach customers.Newspapers promote local events, and their absence can lead to lower attendance and engagement, impacting local economies.

On Political and Social Implications, newspapers play a crucial role in holding local governments and businesses accountable. Their closure can lead to less oversight and increased corruption. Without local newspapers, communities may become less informed about local issues, leading to lower civic engagement and voter turnout.

Furthermore, it has implications on broader economic trends.

On Digital Transformation, there are new business models where media companies are increasingly shifting to digital models, which include paywalls, subscriptions, and diversified revenue streams like events and branded content. We also  have Tech Industry Growth where the shift to digital media benefits tech companies that provide platforms for news distribution, advertising, and analytics.

On Economic Inequality, with respect to access to information, there is a digital divide where low-income and rural communities may have less access to online news sources, exacerbating economic and informational inequalities. On the other hand, on job market shifts, displaced workers from the print industry may face challenges finding new employment, especially if they lack digital skills.

The ceasing of operations of Baguio Midland Courier is not an isolated case. As I mentioned earlier, it also happened to Sunstar Baguio back in 2021. Other than these cases, this phenomenon is also happening around the globe, like that of Detroit Free Press and The Detroit News. These newspapers significantly reduced print operations and moved towards digital-first strategies, reflecting broader industry trends. Another is Rocky Mountain News. The closure of this newspaper in Denver led to significant job losses and a gap in local news coverage. And many more, local startups. Some communities have seen the rise of local news startups and nonprofit news organizations filling the void left by traditional newspapers.

What could be potential solutions and adaptations that may address this phenomenon. First is government and philanthropic support. Governments and nonprofits can provide financial support to struggling local newspapers or fund new local journalism initiatives. There could also be policy interventions. Policies that support local journalism, such as tax incentives for subscriptions or advertising, can help sustain operations.

Another is innovation in business models. Newspapers may have diversified revenue streams by exploring new revenue sources such as e-commerce, branded merchandise, and sponsored content.

Lastly, community Engagement. There may be collaborative journalism. Partnering with local organizations, schools, and other media outlets to produce and share content. And public involvement. Encouraging community involvement in reporting and funding local journalism through crowdfunding platforms.

The economic implications of printed newspapers closing are multifaceted and significant. They highlight the need for innovative solutions to support journalism and ensure communities remain informed and engaged. 

But reality bites, the bottomline is always important. Without enough profit, these publications cannot continue their operations. This cannot be done without people buying these newspapers, but people nowadays prefer to read the news from digital sources. Sad, but true.

I am definitely going to miss reading the obituaries of Midland every Sunday though.