Tuesday, September 3, 2024

Media Changes in North Dakota and Minnesota

Media shake-ups abound on both sides of the border. in 2024, Winnipeg Sun was spun off from National Post media group to locally owned Kevin Klein Group. It marks the first time that both major newspapers in the city have been owned locally in their history. For the Sun, it has led to more local news columnists. It also led to breaking more stories.

The Winnipeg Free Press has also added more local columnists over the years even if some have been controversial such as Charles Adler. Local is what newspapers and TV/Radio news need to stand out and yes, make money. Large conglomerates cut and cut again and then often just close and add the tax loss to write off debts. They are rarely builders. Free Press ownership is shared by Winnipegger Bob Silver and former Winnipegger Ronald N. Stern.

Two local owners of major newspapers in Canada is so unusual that is you can count on three fingers the cities they are in. For the west, it is only one city: Winnipeg. And so far they are fighting a battle against what many in Europe call the six gatekeepers: Amazon, Alphabet (Google), Apple, ByteDance (TikTok), Meta (Facebook) and Microsoft. Even those who receive no government money, companies such as these can control access to their platforms. The breakdown of Microsoft update shutting down the Internet is one 2024 example of how bad things can get. And digital ad money gets swooped up and AI from these giants creates content mined from creators all over. In other words, an independent journalist who breaks a story can see it used by the biggies and not get paid for it.

The gatekeepers can do this to even larger companies too. Artificial Intelligence is being used to create new stories. But where does that information come from? It is often mined from companies such as the New York Times. If the largest newspapers, media companies and the like are vulnerable from the super giants, how do the rest of us even cope. Those saying that the government tinkering in business ignore the fact anti-trust moves are to keep things competitive in a capitalist market. For example, the modern Internet became possible when AT&T was broken up. It triggered some of the biggest investments in telecom ever seen which was essential to a widespread, faster Internet.

The questions of what to do about the supranational giants will remain the question of the day. In recent weeks, Google's search engine has been declared a monopoly by the U.S. government. It remains to be seen see what the federal agencies will decide to do. In the meantime, news and media companies are coming up with new strategies to stay relevant and profitable. North Dakota and Minnesota have seen some of their largest media companies make moves in 2024.

The Minneapolis Star Tribune has dropped the Minneapolis part and it is now Minnesota Star Tribune. This would be in keeping with their sports teams that have always been wise to using Minnesota for their NHL, NBA, NFL and MLB teams without fail. Minneapolis and St. Paul are truly Twin Cities and there are communities of some size all through the metropolitan area. Changing the name makes sense.

A competing broadsheet in St. Paul, Minnesota also dropped their city name in favour of just Pioneer Press. It is not owned locally and have experienced massive cuts over the years. In 2006 they had over 200 unionized writers. By 2023, that number was down to 23. The MediaNews Group that owns the paper and has a reputation of cuttings. Still, like the Star Tribune, it is trying to extend its readership and their website to include all of Minnesota. Their website is twincities.com which doesn't even mention Pioneer Press.

The Twin Cities also has MinnPost.com which is a non-profit digital news for the region. TV and radio stations have substantial news and sports content in Minnesota as well as North Dakota. PBS has extensive coverage of the regions. While there is less local ownership of TV and radio stations in big markets likes Minneapolis, there remains some. In this way, they are not much different than Winnipeg where nearly all local TV and radio has ownership outside Manitoba.

It is the digital audience that everyone in media is trying to capture. Just as landlines are being cut, people are cutting their print newspapers and cable. The problem is that digital ads don't pay as much as print or TV ones. Plus, the gatekeepers scoop up all the money that is there as well as use the content for their own ends. It is the definition of antitrust. 

What the big digital companies don't do as well is news that people might want or need locally. Reddit has discussions on local stuff but it isn't curated in news, weather and sports categories in the way other media is. To that end, local news and TV/radio in North Dakota and Minnesota are offering much more local appeal. Having a local meteorologist reporting is standard for TV stations in the U.S. where some of the wildest weather keeps them on our toes. Winnipeg does not make this a priority. Also, the new digital sub-channels that a station like WDAY Fargo as makes local sports a priority. Al the high school football games in the Fargo region is on the WDAY sub-channels. We don't have digital sub-channels on TV or radio in Manitoba yet and none seem to be happening in Canada. It would appear media empires and the CRTC just don't see the need. If it is Canadian content guidelines that are required, there would seem to be enough library material of older shows to put in place.

In terms of Minnesota, the 157 years old Star Tribune is hiring more writers, not less. The are focusing on placing more reporters outside Minneapolis-St. Paul and covering areas such as business, downtown, regional state issues and investigations. Cannabis stores are new in Minnesota so they will cover that. This is a familiar area for Free Press who covered cannabis with a dedicated journalist for a while. Overall, the state-wide focus means that the Star Tribune will be reaching large audiences but still remain hyper-local. Large media networks just don't cover those areas except in general terms of news, weather and sports.

There will be a lot of eyes on the Star Tribune's investment in expanded coverage. Glen Taylor, the billionaire local owner, is spending new money on top of the $100 million that he paid for the paper in 2014 has turned the paper around. It makes money and has maintained around 225 writing staff and a total of 1,000 or so altogether. The Free Press, by contrast, has 50 reporter and 580 total staff. The Free Press also have community newspapers, Brandon and Steinbach journalists which adds to total writers in Manitoba.  

The Winnipeg Free Press, like Star Tribune, have rich owners. The Free Press is owned by Bob Silver from Winnipeg and Ronald N. Stern, formerly from Winnipeg but now based in Vancouver. Bob Silver is the director in charge. Stern owns companies valued just under $2 billion including many based in Winnipeg. Some wags have suggested that only papers with deep pocketed owners, preferably local, will ever invest in local media. Examples abound in Canada and the U.S. of this.

Digital subscriptions, as the New York Times has shown, is the way for the newspapers to find success. However, the big six grow ever more powerful so that that they can simply use artificial intelligence to create news stories largely harvested from what others report. All the money flowing to the big six even threatens the major industrial nations. It is the inherent danger if antitrust is not pursued. Total monopolies bullying nations.

The Star Tribune is probably not finished evolving. Both the Star Tribune and Free Press are doing newsletters and podcasts. Those are likely a lot of better for a newspaper than X/Twitter or Facebook. As the fifth largest newspaper in America and the addition of hiring six more Minnesota reporters, it will be creating considerably content.

In Canada, TV and radio conglomerates such as Corus, Rogers and Bell use their news teams across platforms. However, they have all made cuts and likely overpaying for show rights in the U.S. This makes them routinely ask to cut Canadian content. Rarely do they use Canadian-made content such as news as part of their commercial success. The mergers and acquisitions and overpaying for product brings inevitable cuts. And for what? Some of the radio and TV stations that get bought get closed down. Often enough there isn't even an attempt to sell the enterprise. Luckily, in Winnipeg, the National Post sold three papers including the Winnipeg Sun to Kevin Klein so they could be owned locally. There is a strong possibility that the papers might have been closed otherwise.

Throughout North America, the rate of closures is about two newspapers a week. Often this mean no local coverage of any regional issues which can lead to poor performance from local officials who face no scrutiny. You don't need a billionaire for a small media company but you sure could use a leading citizen or two interested in running and operating something that can't be treated like a franchise 
with identical reporting.

The Star Tribune has a billionaire owner in Glen Taylor and a local interested in investing in more reporting. The competitive market in Minnesota will be very interesting to keep an eye on. However, Minnesota is not the only state to keep an eye on. North Dakota has seen their own local media become regional in focus.

In the case of North Dakota, Winnipeg has been able to watch the growth of this media company much more closely. Anyone from Manitoba has been able to read the Grand Forks Herald and Fargo Forum newspapers has been exposed this Pulitzer-prize winning companies. The Herald won the Pulitzer for its coverage of the 1997 flood and fire which flooded and burned down their building.  The Forum won the Pulitzer for coverage of the 1957 F5 tornado that killed over 100 people. It was the northern most F5 today until the Elie, Manitoba F5 in 2007. 

The Black-Marcil family have built their business from the Fargo Forum platform. The newspaper was started in 1878 and took on the name Forum in 1891. The Black-Marcil family have owned it since 1917 and took over the Grand Forks Herald in 2006. Forum Communications is also a TV and radio owner. Most in Winnipeg will be familiar with today's WDAY (formerly WDAZ) that has been on the cable band for decades. Along with Prairie Pubic Broadcasting (PBS), these two station remain the only North Dakota stations still seen in Manitoba.

Forum Communications, from their Fargo headquarters, has run a large news team from their newspaper as well as their TV station. WDAY began in 1953 and was originally a NBC affiliate with a helping of other network programming from CBC, ABC and Dumont. A sister station in Grand Forks was started in 1967 because the region needed a station since Fargo's signal was now powerful enough to reach the area with CBC Winnipeg's broadcast. WDAZ ended in 2006 except for a news bureau of WDAY.

The Marcil family has had to adjust to the size of the state and but to go where their audience is. The state capital is down the highway from Fargo and has to be covered so a Forum bureau reporter is based there. The WDAY network maintains a bureau and sales office in Grand Forks. All of the newspapers that Forum Communications has purchased from big media companies have been folded into a news service that covers North Dakota, Minnesota and South Dakota.

In 2024, Forum Communications continues to pick up independent TV stations in places like South Dakota with the intent of establishing a regional media presence. The company has been expanding rather contracting. While it was a blow to Grand Forks to lose WDAZ, the trade off has been great state broadcasting of local sports throughout the region including Grand Forks. No national media corporation will ever be interested in this type of work.

Forum also owns WDAY radio but literally everything in radio is owned by huge conglomerates. Forum contracts out management to a North Dakota media group. Almost everything in American AM radio is conservative or Christian broadcasting. In many cases there is not a single employee working aside from some technical person. It has been problematic in disasters as there is often no one to even broadcast emergency signals as mandated by the FCC.

Bismarck, which is the second largest city in North Dakota, literally has no media that is locally owned. Were it not for  Forum Communications, it would not have any North Dakota owned media. So much of newspaper, TV and radio industry is controlled from somewhere else and often, they would rather shutter the business than attempt to sell it. It has been Forum Communications that has picked up these assets when they have come available.

In Canada and the U.S. we have seen newspapers, TV station and radio stations closed down with very little attempt to find buyers. Assets are trades by big corporations and then dumped after after a while. It is only local owners who will care such as we see in Minneapolis and Fargo or in Winnipeg. And the goal of the local owners is to expand coverage and reach a larger regional audience.

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