The Arkansas Democrat-Gazette newspaper was about to celebrate its 200th birthday when its staff realized in 2018 that its business model was no longer profitable. So they stopped the machines and gradually stopped distributing the print edition, except for the Sunday one.
The economic challenge is not new. With fewer advertisers, the press has witnessed the rapid decline of local journalism and the consolidation of national giants like the New York Times and Wall Street Journal as the only alternative. Nor is it exceptional that a newspaper migrates to online, abandoning paper. The unusual — and risky — was the solution that the head of the publication found to survive.
The Arkansas Democrat-Gazette distributed free tablets to subscribers so they could read the digital edition. It also provided training for readers to get used to the technology. So the daily’s management bet it can retain the most loyal subscribers and continue to pay the bills.
The strategy borders on the surreal, in a market accustomed to budget cuts and layoffs. The newspaper bet around US$ 12 million, which today is equivalent to R$ 67 million, to deliver 37,000 iPads to its readers. And so far, the idea has worked. The newspaper is still active, at least.
“We were trying to find a way to continue to exist,” says Lynn Hamilton, president of the newspaper — which he has worked for for 47 years. “We believe in journalism and we want to continue publishing the Arkansas Democrat-Gazette. Without the press, there is no one watching over power.”
The publication is actually a merger of two 19th-century newspapers: the 1819 Gazette and the 1878 Democrat, which merged in 1991. Based in Little Rock, it is the leading Arkansas state daily, in the southern US, and it’s part of a deep-rooted nationwide tradition of covering local news—from the judiciary to the river level. “Without regional newspapers, how are they going to know what’s going on?” asks Hamilton.
The idea of ​​distributing tablets and teaching subscribers how to use them has an explanation. The Arkansas Democrat-Gazette knows that many of its traditionally older readers are used to, and even attached to, paper. They don’t want to read the news on a computer screen or a smartphone.
On the tablet, readers can access a version of the newspaper that simulates the print edition. The news is organized, ranked and illustrated as on paper. Furthermore, the version of the newspaper on the device has a beginning, middle and an end, unlike the version on the website, which is constantly being updated.
“They like the idea of ​​being able to finish reading the paper,” says its president. Readers can keep the iPad while paying for their subscription. When they cancel, they return.
Hamilton says the Arkansas Democrat-Gazette is fortunate, not shared by other local newspapers, to be part of a conglomerate called WEHCO, which has about ten dailies and a TV channel.
The money for bold investment existed — and a gamble was made that is not always possible to make. He highlights the role of publisher Walter E. Hussman, who came up with the idea and funded its implementation. The group’s Chattanooga Times Free Press is testing the same strategy.
The program began in 2019 on the Arkansas Democrat-Gazette and, according to Hamilton, was able to maintain a profitable subscriber base during its digital transition. Even after canceling the print edition, the newspaper managed to retain around 75% of its subscribers. The newspaper now has a circulation of 65,000 copies a day, including the printed version, distributed only on Sunday.
In the meantime, adjustments were needed. The subscription price ranged from an average of US$18 monthly (R$100) to US$34 (R$189). The company has also reduced its staff — from 420 employees to 270. But none of its 114 journalists have been fired, says the president.
The experiment has been closely monitored in the US. Hamilton says teams from other regional newspapers visit the Little Rock headquarters to learn more about the plan. “It could be that, if it continues to work in the next few years, this idea will be replicated by other daily newspapers”, he says. “We were close to bankruptcy and we found a way out,” says Hamilton. “If we need to, we can find her another time.”
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