Susan Mernit of Oakland local cites a study by J-Lab showing that 50% of the local sites they tracked have folded.  

My question: is that actually a problem?

Many of the institutions that journalists revere are over a century old.  But that doesn’t mean that perpetual existence for its own sake should be a goal for any startup, including a news startup. 

susanmernit:

“Of some 1,200 sites in J-Lab’s database of community news sites, about half are now inactive. Most often, sites fold as a result of their founders’ life circumstances ­– new jobs, new responsibilities – rather than failed business plans. Still, there is growth: Steady producers like West Seattle Blog and Davidson News have launched affiliated sites. Small networks like Main Street Connect and Hamlet Hub have added sites. And, of course, Patch, for now, is still in the picture. There are some clear-cut indy models: Sites run by solo entrepreneurs or mom-and-pop operators that are generally hyperlocal in focus with tiny staffs. Statewide watchdog sites, often focused on state capitol issues. There are several newcomers in this cluster: Oklahoma Watch, Iowa Watch, Nebraska Watch, Maine Center for Investigative Reporting; they join more mature sites such as iNews, VTDigger and Texas Tribune. University-led news startups. These include the likes of Neon Tommy and Intersections SouthLA, both at USC-Annenberg, or GrandAveNews at the University of Miami. Niche sites. Coming on strong are topic-centric sites that focus on such things as: Public education, such as the Public School Notebook in Philadelphia. Health, such as C-Hit, Fair Warning, or Health News Florida. Arts and culture, such as Nola Vie, Oregon Arts Watch, theartblog. The local tech community: Technically Philly, Silicon Hills News. While there is much talk of a “business model” for these entrepreneurial news sites, the best models seem to involve multiple, micro streams of funding.”

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