Local Startups Seek 'Future of Journalism'

The growing presence of neighborhood news sites backed by broadcast stations and newspapers or national companies like AOL make securing local online turf a tough prospect for independents, most of which don't have big bucks to put into promotion, sales and staff.

"I've seen many of them fall flat," says Gordon Borrell, of Borrell Associates, which tracks the online media business. "You'll get crushed unless you have several million dollars in assets." Borrell estimates that there may be more than 1,000 independent hyperlocal sites. But most are "run by what could be called gadfly hobbyists or perhaps disgruntled former journalists living on the fumes of severance pay." The number of sites "of any note" -- that are actually generating significant advertising revenue -- is between 100 and 150, mostly in large markets, he says. Many independents have virtues that corporate-backed hyper-locals don't, like news-savvy staff and community roots, but lack of business know-how puts them at a disadvantage, he said.