The conversation around the future of local journalism often swings between alarm and nostalgia. But a new report from FT Strategies, produced in partnership with the Knight Foundation, attempts something different: identifying what is already working. Drawing on global data and newsroom case studies, the report focuses on the characteristics shared by organizations that are managing to sustain themselves — not hypothetically, but right now.
George Adelman, director and head of partnerships at FT Strategies, framed the intent clearly, noting that “we are not trying in this report to gloss over some of the systemic challenges that the local news ecosystem faces… but what we are trying to do instead… is really think about ways that we can help the ecosystem… with practical guidance for local news organizations that they can apply… even amidst difficult socioeconomic circumstances and constrained resources.” He emphasized that the goal was not another high-level diagnosis, but a grounded approach to action, explaining that the research aims to “cut through some of that noise and give really practical steps and advice for local news organizations to implement within their own constraints and the challenges they face in the market.”
Reframing sustainability: relevance over scale
One of the report’s most significant findings is a shift away from scale as the defining measure of success. For decades, publishers have pursued audience growth as the primary goal. Adelman argues that this mindset no longer aligns with reality. Instead, sustainability is increasingly tied to relevance — the degree to which a newsroom serves its community in ways that matter.
He explained that “in terms of the digital transformation in legacy print products… a lot of organizations underestimated the service value of those products over and above the journalistic quality within them,” adding that “with the transition to digital, a lot of that value was unpacked and lost to other services on the internet.” That loss has, however, created an opportunity for those willing to rebuild value around audience needs. “I think there’s an opportunity through relevance and utility to regain the trust and attention, most importantly of local communities, build that audience and by extension create the revenue,” he said.
The distinction is subtle but critical. It is not simply about producing journalism, but about delivering something useful and essential. As Adelman put it, “it’s so important to be serving audiences as a craft, not just journalism as an art. Art can sit on the wall, and no one can look at it, but a craft has to be used in a way that’s productive and helps those communities.”
Community connection as a growth driver
The research shows that sustainable organizations tend to be deeply embedded in their communities — not just reporting on them, but reflecting and participating in them. That connection translates directly into engagement and, ultimately, revenue.
Adelman noted that “those local news organizations that were experiencing significant growth were twice as likely to be prioritizing community and societal impact than those who had experienced decline,” reinforcing the idea that mission and performance are not mutually exclusive. He added that “newsrooms that are reflecting their communities… and participate in broader social and civic life, are consistently creating more accurate and valued journalism and reporting.”
Data also plays a role in strengthening that connection. “We saw that from the local news organizations that we assessed that they most commonly cited core coverage areas like civic affairs and local genuine news as being crucial to their engagement metrics,” Adelman said, adding that “53% frequently used audience data to guide editorial decisions.” That feedback loop — understanding audience needs, responding to them, and measuring the results — is central to building both trust and sustainability.
Owning the audience relationship
Another core theme of the report is the importance of direct relationships with audiences. In an environment where platforms increasingly control distribution, owning the connection to readers has become a structural advantage.
Adelman pointed to the success of newsletters as one example, but stressed that the underlying principle is broader. “Newsletters have been a very effective tool and continue to be, but I think it’s deeper than that,” he said, explaining that they represent “a direct-to-consumer… distribution vehicle where there’s a certain level of personalization and mitigation of the risk of disintermediation.”
That risk — of being cut off from audiences by platforms or algorithms — is only growing. “The threat of disintermediation by social and now artificial intelligence… means that it’s going to be even more crucial to have a direct conversation with your audience,” he said. And those conversations are happening across multiple channels, as “we’ve seen WhatsApp groups being a very effective way… we see it in comment sections, SMS and sometimes in physical and virtual events.”
The goal is not simply distribution, but engagement. As Adelman noted, these mechanisms provide “interactivity and personalization and scalability… to meet the audience where they are,” making them more resilient than platform-dependent strategies.
Diversifying revenue beyond philanthropy
While mission-driven journalism often turns to philanthropy for support, the report is clear that it cannot be the sole solution. Sustainable organizations rely on a mix of revenue streams that reinforce one another.
Adelman acknowledged the importance of philanthropic funding but cautioned against overreliance on it. “I’m a huge supporter of the philanthropic effort within media… but I think it’s crucial that that focus should be on sustainability because without it, there will be no sector,” he said. “There cannot be a continued dependence on philanthropic funding… for the survival of the industry.”
Instead, he argued that funding should be used strategically. “We need to use philanthropic funding much more as a catalyst for growth and to support the diversification of other revenue streams,” he explained. The data supports that approach: “sustainable organizations typically maintain three to four meaningful revenue streams,” meaning that “philanthropy most certainly can be one of those, but it needs to be sustaining the others.”
This diversification not only reduces risk but also creates a more resilient business model — one capable of adapting to changing conditions.
Using AI with purpose, not hype
Artificial intelligence has become one of the most talked-about forces in the industry, but the report suggests that its value depends on how it is used. The difference between effective and ineffective adoption often comes down to focus and discipline.
Adelman observed that smaller organizations are often leading the way. “We’ve seen… local news organizations… really using AI very effectively to scale,” he said, noting that “they are constrained in resources and have to focus and allocate those resources in a very deliberate way.” In those cases, AI is not an experiment, but a tool tied to clear priorities.
That effectiveness is built on data. “The more sustainable news organizations are the ones that really underpin all their work with really strong data,” he said, adding that “with that strong data infrastructure… [they] place artificial intelligence and automation capabilities on top to give them insights but also scale and efficiencies.”
The role of AI is also evolving. “We are seeing a shift from use cases around efficiency to more utility,” Adelman explained, particularly in “tools for making employees work more effective and insightful, but also for audiences to interact and engage with.” That shift points toward a future in which AI enhances both newsroom operations and the audience experience.
A roadmap for the next three years
Looking ahead, Adelman sees no single blueprint for success. The path forward will vary depending on each organization’s strengths and community. But certain patterns are emerging among those succeeding.
“There isn’t one size fits all,” he said, noting that the report outlines “different routes to success.” Still, common elements stand out. “One is creating real mission alignment… particularly understanding who your audience is and aligning to it,” he said. “Then being really laser focused on the commerciality… and third, having operational discipline.”
Those principles are already being applied by some organizations. Adelman pointed to examples where “growth organizations were… increasing their costs to invest in those areas,” demonstrating that strategic investment, even in a constrained environment, can drive results.
Ultimately, the report suggests that the future of local journalism will not be defined by a single innovation or funding model. Instead, it will be shaped by organizations that understand their communities, build direct relationships, diversify revenue and apply technology with purpose. As Adelman’s insights make clear, sustainability is not a distant goal — it is already being achieved by those willing to rethink how they operate.
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