3 big risks catch up with some indie publishers in 2026

"Our work delving into the businesses of independent news publishers through LION's Sustainability Audits has given us a unique window into the operations of more than 500 newsrooms across the country. Each is trying to build a digital business around local news; some are rural, some are urban; some are relatively large with staffs up to a few dozen, but the vast majority are small."

"The challenges? AI implementation keeps eroding traffic and advertising business; increased competition for philanthropic dollars, including well-funded university development teams competing for scarce resources. But most critically, we see a crucial need for business training and resources for the sector. Without support to shore up the operational resilience of these organizations, common risk management pitfalls that we see will become insurmountable obstacles."

"Neglected books come home to roost: All founders are strapped for time. Most hail from the news side of the industry, so they don't put enough effort into creating a financial budget and tracking finances. To a startling degree, these newsrooms don't know how much money is coming in, and how that tracks against what they're spending - on salaries, on freelancers, on the systems that allow for publishing."

More than 500 independent local newsrooms are trying to build digital businesses, ranging from small rural operations to larger urban outlets. AI implementation is eroding traffic and advertising revenue while philanthropic funding faces stiffer competition. Many founders come from reporting backgrounds and are strapped for time, resulting in weak budgeting, poor cash-flow monitoring, and reliance on fiscal sponsors for financial oversight. Numerous publishers use Excel or Google Sheets instead of small business accounting software, increasing risk of payment default and financial mismanagement. Urgent business training, modern accounting systems, and operational support are needed to improve resilience and reduce common risk pitfalls.

Read at Nieman Lab