Lisa DeSisto, CEO of Sun Media Group and MaineToday Media, delivers her talk, “A Bright Future for Newspapers,” at the Great Falls Forum on Thursday afternoon at the Lewiston Public Library. (Andree Kehn/Sun Journal)

LEWISTON — The leader of Maine’s largest news media company says she is “both excited and very nervous” about the future of newspapers.

Lisa DeSisto, CEO of MaineToday Media and the Sun Media Group – publisher of the Sun Journal – discussed the state of newspapers Thursday during a Great Falls Forum at the Lewiston Public Library.

She told the audience that as the industry faces shrinking print revenue, a sustainable model built on more digital subscriptions and revenue must be found.

“The work that we publish every day in print and online is vital to our community,” DeSisto said, “and it’s just absolutely critical that we’re able to come up with a business model and financial model to sustain the journalism we’re creating.”

At the same time, professional journalism has never been more important, which underscores the need for media outlets to better connect with readers and find alternate sources of revenue.

There are reasons for optimism, she said.

In July 2017, the Costello family in Lewiston announced the sale of the Sun Journal and 16 other publications to Reade Brower, owner of MaineToday Media, which publishes the Portland Press Herald/Maine Sunday Telegram, Kennebec Journal in Augusta, Morning Sentinel in Waterville and The Coastal Journal in Rockland.

With the recent acquisition of Sun Media Group, DeSisto said the two companies are now better suited to face the challenges ahead.

Together, the two companies have nearly 600 employees and publish four out of the five major daily newspapers in Maine, along with a number of weekly newspapers and magazines. The Bangor Daily News is also printed at the Sun Journal’s press room.

“To survive and thrive, we needed a more scalable model,” DeSisto said, referring to the acquisition last year. Together, she added, the two companies can more easily “deepen relationships” with advertisers and attract new, younger readers.

Part of the model will be expand the base of digital subscriptions and digital advertising revenue. Currently, only one percent of Sun Media Group’s revenue comes from digital advertising, compared to 51 percent from print advertising.

The Sun Journal’s press operation also accounts for 17 percent of the company’s revenue.

According to the Newspaper Association of America, print advertising revenue nationwide fell to less than $20 billion in 2015 from more than $60 billion in 2000.

However, last year The New York Times and many other major American newspapers reported huge gains in the number of online subscriptions. The Times Co., for example, has recently surpassed 2.6 million digital-only subscribers.

DeSisto said in the next year or two, the companies must add new “slices” to the revenue pie. When the Sun Journal launched a new website last year, it also put up a “paywall” of five free articles before a subscription is required – a number she said may soon be lowered to three.

While social media is a constantly changing landscape, DeSisto said it is extremely important for gaining web traffic. About 40 percent of the traffic on the Sun Journal’s website comes via links from Facebook.

At the same time, she said, the newspapers also need to increase options for readers by offering day passes and other plans that are easy and inexpensive. The papers are also trying to find a way to allow readers to digitally access all Sun Media and MaineToday publications with a single print subscription.

Locally in Lewiston, she said nothing has changed in terms of the Sun Journal’s commitment to the community. With the recent sale, there have been physical changes to the Sun Journal’s presence downtown, but the operations remain the same.

During the forum, questions from the audience hit on the role of newspapers in the “fake news” era, and their “survivability” in the age of social media and alternative news sites that cater to specific demographics.

One attendee, who identified himself as a former journalist, said he is worried for the future of newspapers. He said his kids get all their news online – “whether it’s true or not.”

Another attendee said that a growing number of readers only wants news “that fits what they want to hear.”

DeSisto said newspapers have “trusted, credible brands” that are critical in today’s 24-hour news cycle, and they must differentiate themselves from other news sources.

“It’s frightening to me when people sort of self-select their news sources to go to a place where someone’s going to validate absolutely everything that they believe in,” she said.

The Sun Journal is currently partnering with the Auburn Public Library on a media-literacy program, featuring events and film screenings throughout February.

Ultimately, DeSisto said, local-community journalism is what keeps readers coming back.

“Without us, who would hold the powerful accountable,” she said, “and how would you find out about new restaurants?”

arice@sunjournal.com

Copy the Story Link