Dave Morgan, a digital media pioneer who helped shape the evolution of online advertising, offers a candid look at the challenges and opportunities facing local news in this episode of E&P Reports. From the rise of AI and social video to the limitations of subscription models, Morgan shares why traditional revenue strategies are faltering and what publishers should focus on instead. He also explores how local news organizations can rethink their business models, embrace new advertising approaches and stay relevant in a rapidly shifting media landscape.
The rise of AI and social video: The future is visual
For Morgan, the biggest transformation shaping the media industry is already in full force — artificial intelligence (AI) and social video. These two factors, he emphasized, are redefining how audiences consume news and how publishers must think about content distribution.
“We’re not putting those things back in the box,” Morgan stated. “Text and still photos have important roles in delivering news and information, but they will be increasingly less important than video, sight, sound and motion.”
He highlighted the power of AI-generated content and the increasing dominance of short-form social video in news consumption. The ability to produce high-quality, engaging video at low cost, combined with social amplification tools, presents a significant opportunity for news organizations willing to embrace these technologies.
“The feedback loop that exists today — instant audience reaction, optimization, and distribution — never really existed when news was published daily, weekly or monthly,” he said. “Social video and AI are not just threats; they are powerful tools that can amplify the distribution of journalistically driven products.”
His message to local publishers: get comfortable with these changes because they’re not going away.
Subscription models vs. advertising: The harsh reality for local news
While many publishers continue to chase subscription-based revenue models, Morgan remains skeptical that paywalls alone can sustain most news organizations — especially at the local level.
“I don’t think that most people are going to pay for news subscriptions outside of business news, which they can expense to their companies,” he said. “And I haven’t changed my viewpoint on this in 30 years.”
Morgan pointed out that advertising covered 80% of the cost of delivering the news in the golden age of newspapers. Subscription fees were never designed to fully sustain the industry but rather to subsidize the cost of physical production and distribution. That model, he argued, no longer exists.
“The idea that what you do is so important that people without much disposable income should have to pay for it — that’s just hubris,” Morgan said bluntly. “We lost the package with all the ads, and that’s what broke. We fragmented our product.”
He stressed that local publishers must rethink their revenue strategies, focusing on engagement and building new advertising models. “Getting an indication of value — like daily active users, time spent on content and recurring engagement — matters more than expecting readers to pay for every piece of content.”
The state of broadcast media: Parallels and differences from print
Having worked extensively in the television space, Morgan sees some similarities between the struggles of broadcast media and those of newspapers — but he also believes TV has structural advantages that may help it avoid the fate of print.
“TV has always been an electronic product, so its incremental cost of distribution is zero,” he explained. “Newspapers, on the other hand, were fundamentally a print-based product with a growing distribution cost.”
According to Morgan, one of the key advantages television still holds is its ability to deliver free-to-air content. “More ads are delivered on free-to-air television than on all digital-driven web video in the U.S.,” he noted. “That’s something newspapers never had.”
He also pointed out that while newspapers fell in love with their version of journalism and news production, television companies have always been focused on attracting audiences and maximizing ratings. “They didn’t get as caught up in the identity crisis that newspapers did,” he said. “TV knows its role — delivering compelling content in the most engaging way possible.”
Still, he warned that television, like print, will need to adapt to the changing consumption habits of audiences. Streaming, AI-driven content curation and interactive advertising will be crucial in determining the medium's future.
How local publishers can reinvent themselves
Morgan was particularly passionate when discussing the future of hyperlocal news publishers, acknowledging that many small-market newspapers are struggling to replace lost advertising revenue and readership. His advice? Stop clinging to the past and start solving the real problems of the local business community.
“As the founder of Intuit told us, don’t fall in love with your products — fall in love with your customer’s problems,” he emphasized. “Local publishers need to stop lamenting the loss of print classifieds and find new ways to serve local advertisers.”
He said one of the biggest opportunities lies in self-service advertising platforms. “We lost to Facebook because it made placing ads easy for small businesses. Local newspapers need to embrace self-service ads,” Morgan said. “The capacity to deliver locally relevant video is practically free today — so why aren’t more newspapers doing it?”
Morgan cited his own company, Simulmedia, which recently launched SkyBeam.io, a self-serve connected TV advertising platform with minimum buys as low as $25 weekly. “We built it to be like Facebook, where small businesses can buy directly and measure results. Local newspapers should be thinking along the same lines.”
He also stressed the importance of embracing AI and video, working collaboratively with local broadcasters, and taking advantage of their communities' rich content. “Local news organizations have rich stories and an audience that craves them. They just need to rethink how they package and deliver that content.”
A call to action for news publishers
Morgan wrapped up the conversation with a stark reminder that the decline of local news has serious consequences beyond the business itself.
“The collapse of the industry has contributed to political polarization, the loss of local businesses and declining civic engagement,” he said. “News still matters — it just needs new business models, creativity and a willingness to fight for survival.”
His final message was clear: innovation, not nostalgia, will determine the future of local journalism.
“You can’t fall in love with yesterday’s products. You have to fall in love with your community’s needs and spend time on the sidewalks figuring out how to meet them,” he said. “If local publishers can do that, they have a real shot at thriving in the digital era.”
As media companies navigate an uncertain future, voices like Morgan’s serve as both a wake-up call and a roadmap for those willing to adapt. The tools for success are already out there — now it’s just a matter of who will use them.
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DanPulcrano
Dave Morgan has always been a visionary with a unique understanding of the industry. He’s right about the paywalls and subscriptions, which hasn't worked for local media and have contributed to their decline.
Media companies must continue to innovate and offer a mix of traditional advertising, digital services, events and other marketing opportunities to their customers to remain relevant amidst the today’a media landscape.
Thursday, January 30 Report this