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OMG is Canada’s startup answer to the local news crisis
Local news has been battered over the past two decades. The rise of the internet shredded some of the long-held monopolies of newspapers and local TV stations on news and classified ads, while social networks like Facebook, Nextdoor and Citizen have increasingly pulled in reader attention for neighborhood updates. Newspapers have closed, journalists have been decimated and there are increasing numbers of “news deserts” with no coverage whatsoever.
At the same time, there is a creator revolution underway right now in online media. Audience development, community and subscription are coming together in fresh ways that seem particularly opportune for local journalism today. Will these new sets of tools finally allow for the rebuilding of local journalism after the last era of hollowing out?
April 15, 2021Substack and Facebook have also announced local newsletter initiatives in recent weeks. Mohamed said he and Wilkinson had a laugh at all the fanfare around the Substack Local announcement, which promised $1 million split between “up to 30” local news writers. (We wrote about the announcement, which would leave local journalists with around $30,000/year before benefits or other costs.) Overstory, meanwhile, estimates it’s investing about $500,000 into each new publication, including salaries, benefits, and legal support for journalists from day one.
Mohamed says the idea is to make every brand sustainable within 12 to 16 months. (From the “Join Us” page: “We understand ideas are cultivated and quality doesn’t happen overnight, so we’ll give you the time to create thoughtfully for your community.”) Overstory will drive membership and audience growth and provide technology and legal support but expects to leave editorial decision-making to individual pub
Last modified on Mon 3 May 2021 06.11 EDT
Local journalism has shed jobs faster than the coal industry, leaving swathes of North America as news deserts with little or no regular coverage.
But the grim prospects for an industry in decline didnât deter the Canadian tech entrepreneur Andrew Wilkinson, who in 2019 hired a reporter and launched a daily newsletter in his hometown, Victoria.
Emailed to subscribers early each morning, Capital Daily gave residents news highlights from around the city. Wilkinson bought advertising on Facebook and Google and subscribers started pouring in.
A year later the venture had more than 40,000 readers, and within two years, the Capital Daily has transformed from morning digest of the cityâs news into an enterprising outlet publishing long-form investigative features.