People Need Local Media
While the changes sweeping North America is vast in so many areas and while there has been so many changes in local publishing, it would seem the fire is not about to go out, not now, not ever!
Small newspapers, magazines, and local media in 2026 sit at a crossroads: still essential to democratic life, still trusted more than national outlets, yet financially strained by digital platforms, shifting audience habits, and AI‑driven changes in discovery. The landscape is challenging, but not hopeless. Recent legislation, tax measures, platform agreements, and new revenue models are giving small publishers tools to survive and, in some cases, rebuild.
Small Newspapers & Local Media 2026
Local news remains in crisis. More than 600 local news outlets have closed across 388 communities since 2008 in Canada alone, according to the Local News Research.
In the US, more than 2,500 newspapers have closed in the same time period, according to Northwestern University’s Medill School.
Publishers report declining print revenue, plateauing digital subscriptions, and traffic drops caused by AI search summaries and reduced referral traffic. In the Local Media Consortium’s 2026 survey:
72% of publishers saw digital revenue up or flat in 2025
85% expect similar growth in 2026
Subscription challenges increased 383% year-over-year
Small publishers are particularly vulnerable because they lack the scale, engineering resources, and bargaining power of national chains. Yet they remain indispensable for coverage of courts, policing, city hall, and community sports — the civic reporting no national outlet can replicate.
Legislation & Government Support for Local Media
Canada: Major Legislative Interventions
1. Online News Act (Bill C‑18)
This landmark legislation requires large digital platforms to compensate Canadian news businesses for use of their content. It has resulted in ~$100 million annually from Google flowing to Canadian publishers.
Small publishers were excluded from earlier private licensing deals with platforms, but the Act ensures they now receive support.
2. Canadian Journalism Labour Tax Credit (CJTC)
A refundable tax credit supporting newsroom employment.
Currently 35% refundable credit for qualifying journalism organizations.
Scheduled to drop to 25% on Jan 1, 2027, but publishers are lobbying to maintain 35% due to its significant impact on newsroom stability.
The 2026 Spring Economic Update reaffirmed federal commitment and proposed expanding the credit to audio and audiovisual news production.
3. Federal Advertising Set‑Aside (Proposed)
Publishers are advocating for Ottawa to reserve 25% of federal advertising budgets for Canadian news outlets — similar to policies in Ontario, New York City, and Maryland.
4. Emerging Support Models
Reports from the Public Policy Forum and Rideau Hall Foundation highlight new initiatives:
Legal support networks for journalists
Philanthropic funding accelerators
Shared services hubs for small outlets
Legislation & Government Support in the U.S.
Unlike Canada’s Online News Act, the U.S. has no federal law requiring platforms to compensate publishers. But several state‑level and proposed federal measures are shaping the landscape.
1. Journalism Competition & Preservation Act (JCPA) – Federal (Proposed)
This bipartisan bill would allow news organizations to collectively negotiate with tech platforms for compensation.
It has not passed, but it remains one of the most discussed policy proposals in U.S. media circles.
2. California Journalism Preservation Act (CJPA) – Passed 2024, Implementation Ongoing
California became the first state to pass legislation requiring large tech platforms to pay publishers for use of their content.
Key features:
Payments tied to advertising revenue
Funds directed to newsroom employment
Applies to publishers meeting certain size and content criteria
Implementation is still unfolding, but it is expected to influence other states.
3. State-Level Tax Credits & Grants
Several states have introduced or proposed support measures:
New York: Tax credits for hiring local journalists
New Jersey: Civic Information Consortium grants for local news innovation
Maryland: State advertising set‑asides for local media
Illinois: Proposed payroll tax credits for newsroom jobs
These programs are smaller than Canada’s CJTC but represent a growing trend toward state‑level intervention.
4. Public Notice Requirements
Many states still require legal notices to be published in newspapers.
This remains a critical revenue stream for small publishers, though some governments are attempting to move notices online — a major threat to local papers.
New Trends for Small Publishers (2026)
1. Cross‑Platform Digital Advertising Growth
Publishers are shifting from traditional banner ads to integrated campaigns across web, mobile, video, OTT/CTV, newsletters, and social.
Video, branded content, and email newsletters were top revenue successes in 2025.
2. Subscription Plateau → Membership & Donations
With only 15% of consumers willing to pay for news, publishers are pivoting to:
Membership programs
Voluntary contributions
Community sponsorships
3. AI‑Driven Discovery Changes
AI search summaries reduce click‑through traffic. Publishers are responding with:
Direct audience engagement (newsletters, SMS alerts)
Stronger SEO for evergreen content
More video and multimedia formats
4. Shared Services & Collaboration
Small outlets increasingly pool resources:
Joint ad networks
Shared CMS platforms
Regional investigative teams
5. Philanthropy & Nonprofit Models
Philanthropic funding is rising but considered a bridge, not a permanent solution.
Revenue Models & Tools Small Publishers Are Using
1. Digital Advertising (Cross‑Platform)
Advertisers now buy multi‑channel packages:
Web display
Mobile
Video/OTT/CTV
Sponsored newsletters
Branded content
Tools used:
NewsPassID (brand‑safe local news advertising)
Digital‑On‑Demand Services (DODS) for tech support
2. Events & Community Engagement
Publishers increasingly host:
Local business expos
Community awards
Ticketed events
Even unconventional revenue streams like local TV bingo funding newsrooms
3. Sponsored Content & Native Advertising
Local businesses prefer storytelling over simple display ads.
Examples:
“Meet the Maker” profiles
“Local Business Spotlight” series
Industry explainer articles
4. E‑commerce & Affiliate Revenue
Some small outlets add:
Local product guides
Affiliate links
Marketplace listings
5. Government & Institutional Advertising
Governments, hospitals, universities, and public agencies remain reliable advertisers.
Publishers are pushing for guaranteed allocations (25% set‑aside).
6. Philanthropic Grants & Foundations
Used for:
Hiring reporters
Launching investigative projects
Building digital infrastructure
Who Is Advertising in Local Media Today?
1. Local Businesses
Still the backbone of community advertising:
Restaurants
Retail shops
Real estate agents
Home services
Auto dealers
Medical clinics
2. Government & Public Institutions
Municipal, provincial, and federal agencies use local media for:
Public notices
Health campaigns
Community programs
3. National Brands Seeking Local Reach
Industries include:
Telecom
Banking
Insurance
Grocery chains
Automotive manufacturers
4. Nonprofits & Community Organizations
Often sponsor editorial series or event partnerships.
Is Co‑op or Supplier Ad Funding Still Viable?
Yes — but evolving.
Co‑op advertising (where suppliers reimburse retailers for local ads) remains viable, especially in:
Automotive parts & service
Hardware & home improvement
Agriculture
Outdoor equipment
Appliances & electronics
However, the format has shifted:
Less print‑only co‑op
More digital packages (video, social, newsletters)
More demand for measurable ROI
More templated creative provided by suppliers
Publishers who offer turnkey digital ad packages with reporting dashboards are seeing stronger co‑op participation.
Practical Guidance for Small Publishers
1. Build a Multi‑Stream Revenue Portfolio
Diversify across:
Cross‑platform digital ads
Memberships
Events
Sponsored content
Philanthropy
Marketplace listings
2. Strengthen Direct Audience Channels
Email newsletters remain one of the highest‑ROI tools.
3. Invest in Video & CTV
Video/OTT/CTV was one of the top revenue successes in 2025.
4. Leverage Government Programs
Maintain eligibility for:
CJTC
Online News Act funding
Provincial advertising allocations
5. Collaborate Regionally
Shared services reduce costs and increase capacity.
Final Takeaway
Small newspapers and local media are under pressure, but new legislation, tax credits, platform payments, and diversified revenue models are creating a path forward. The future belongs to publishers who embrace cross‑platform advertising, direct audience engagement, collaborative infrastructure, innovative revenue streams with helpful new technologies and workflows.