This article was originally published on Northwestern University’s Medill Local News Initiative website and is republished here with permission. This text was adapted from the introduction of our report on how Chicago-area residents consume local news. Download a full PDF version of the report.

The financial pressures on journalism are plain to see in the digital age as the print newspaper industry shrinks, reporting jobs disappear, and online competitors struggle to develop footholds. A news transformation is underway, with many winners and losers to be determined.

More difficult to observe are the changing day-to-day news consumption habits of individuals, from the moment they awake and scan headlines on their smartphones to the late evening when they watch — or perhaps no longer watch — a local news broadcast on their television.

Decisions by news consumers ultimately will determine the financial future of journalism — and thus deeply impact the quality of civic life because a vigorous press lies at the foundation of our democracy.

But what is the level of daily interest in local news, given the weakening journalism ecosystem, the growing allure of social media and other distractions? How do people get their headlines and stories today?

This report by Northwestern University’s Medill Local News Initiative, based on a sweeping, in-depth survey of Chicago-area residents, captures the decisive shift to smartphone use from television and print newspapers, and the severe challenge to the sustainability of local news when half of consumers believe no one should pay for journalism.

This survey of 1,004 people, one of the most comprehensive examinations ever of news consumption habits in Chicagoland, can be taken as a microcosm for what is happening locally across the country. It identifies numerous profound challenges to news organizations as the industry struggles to adapt to the digital age.

A few highlights:

• Nearly two-thirds of those surveyed (62%) said they frequently use a smartphone to consume local news, ahead of television (52%), which was the device of choice for decades.
• Print readership continues its inexorable decline. Just 9% of respondents said they read printed newspapers and magazines often, with only 4% saying they do so “all the time.”
• Chicago-area residents have a weak financial commitment to news. Only about a fifth of Chicago-area residents (19%) pay or donate money for access to local journalism.
• The majority (51%) said no one should pay for local news.
• Most people (71%) believe local news outlets are doing “somewhat well” or “very well” financially, despite the crisis that’s been battering the news industry.
• The public generally remains engaged in following news events — 52% of adults say they consume local news daily.

This survey was undertaken by Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications, with funding by the MacArthur Foundation. The authors are Medill professor Stephanie Edgerly, associate dean of research; assistant professor Yu Xu; and Tim Franklin, senior associate dean, John M. Mutz Chair in Local News and director of the Medill Local News Initiative. NORC at the University of Chicago, on Medill’s behalf, surveyed 1,004 adults throughout the 14-county Chicago metro area, including counties in Indiana and Wisconsin. The margin of error was +/- 4.66%. (See our detailed explanation of the methodology in the report PDF.)

Measuring local news consumption

What does it mean when more than half of adults in the Chicago metropolitan area said they regularly watch, read or listen to local news daily? It shows that local news continues to play a regular role in people’s daily lives, even in the age of fractured audiences for mass media.

For decades, Chicago-area audiences wanting local news turned on their television sets. TV was the device of choice, ahead of newspapers or radio, generating significant profits for station owners and making local news anchors celebrities. Newspapers had their profitable niches, but the advent of the digital era heralded dramatic changes in consumer habits and industry revenues.

The Medill survey confirms that the transition to the smartphone era of local news is in full swing.

While smartphones are the most used devices, the survey also asked about specific sources of local news to find out how people access news and information.

About four in 10 respondents said they get local news at least once a day from local television stations (42%) and search engines (41%). This was followed by social media groups and pages (34%). Local newspapers came in at 20%.

A disconnect in perspectives

While the report confirms the impact of technological and social changes on local news consumption habits, it goes deeper in identifying the unraveling of traditional relationships between audiences and local news. Indeed, the findings suggest that some basic assumptions by generations of journalists and civic leaders about what motivates local news consumption may no longer be true.

Industry leaders have made passionate arguments in defense of financially struggling newspapers, warning that democratic traditions are at stake because journalists are watchdogs of public interest whose work binds citizens to communities. But that perspective isn’t widely recognized. The survey suggests that the news industry, philanthropists and others need to do more to raise public awareness about the importance of local news to civic life. When the Chicago-area residents surveyed were asked about their motivations for consuming local news, they indicated the main reason is to meet the needs of their everyday lives.

Specifically:

• More than half of those surveyed consume local news because it “helps me save and manage money” (60%) and “helps me stay healthy” (52%).
• Less common are civic incentives such as “helps me feel connected to my community” (15%), “helps me take action to address issues I care about” (12%) and “helps me stay informed to be a better citizen” (10%).

This finding will undoubtedly disappoint many reporters and others who would like to believe high-minded ideals help motivate public interest in news. Still, it’s important to keep in mind that consumers rely on local news for many reasons, as varied as investigative reports to community feature stories. As a result, their motivations for consuming news may reflect a range of services they value, not necessarily a rejection of journalistic civic purpose.

The goal of this study was to examine the current state of the public’s interest in and reliance on local news, as well as specific readership, viewership and listenership habits. News organizations, journalists, philanthropists, entrepreneurs and scholars benefit from a better understanding of news consumers’ behaviors during a period of tumultuous change. Armed with these insights, key stakeholders can explore new pathways to better meet the public’s needs and explore new business models to support the local journalism our communities need.

The financial crisis in journalism is a direct result of the internet, which democratized and commoditized news by disseminating so much information without charging subscription fees. The click-based, ad-driven business model for news and information battered the industry’s traditional approach. Many local news organizations didn’t have the reader scale to support newsrooms with click-driven ad revenue, and all outlets were hindered by changing algorithms of digital platforms. Because news organizations struggle to earn enough from selling online ads, they’ve put up paywalls. This report shows how hard it is to persuade people to spend money for something they were getting free.

Persuading consumers to pay may be hindered by a surprising fact: The public is not aware of the dire state of the news business. Unless consumers recognize the need to financially support newsgathering, why would they do so? The new Medill study found that 71% of respondents believe local newspapers and other news media are financially healthy, with 54% saying they are doing somewhat well and 17% saying very well. This result, while generally consistent with a new Pew Research Center national study of local news, runs counter to the dire reality facing most local news organizations. The State of Local News Report chronicled an industry in collapse, losing the equivalent of two and a half local news organizations a week, 10 per month.

Some positive indicators

It is not all doom and gloom for local news organizations in the Chicago area. The study identified steady consumer interest in news and open-mindedness about the industry. About half (52%) of adults say they consume local news daily. Generally they feel good about what they consume. About half (53%) trust local news media to get things right, a higher portion than found nationally (41%).

Additionally:

• 38% of Chicago-area residents support giving government tax credits to local news outlets. That’s a relatively high share given the limited amount of information known about an idea recently under consideration by Illinois lawmakers.
• While most respondents (85%) have never met a local journalist, close to half (43%) said they were interested in attending a meet-and-greet with local reporters.

Ultimately, the results of the study suggest that for local news media to not just survive but thrive, they need to make local news that is essential to the everyday lives of the public — and they need to convince the public that their financial support is vital to the survival of local news in the Chicago area.