How Worker-Owned News Outlets Are Changing the Media Industry
The media industry has been facing unprecedented challenges in recent years. The COVID-19 pandemic led to widespread job insecurity, with thousands of news company employees being laid off, furloughed, or having their salaries reduced. This instability was still evident in 2024, with major layoffs and closures affecting outlets like the Los Angeles Times, the Messenger, and HuffPost.
According to a report by Challenger, Gray, and Christmas, Inc., 13,279 media jobs were cut in 2024, with many more expected to be affected in the coming years. This trend is part of a broader shift away from corporate ownership in the media industry.
The Rise of Worker-Owned Media
In response to these challenges, some entrepreneurs and journalists are turning to worker-owned models to create sustainable and independent news outlets. One example is 404 Media, an employee-owned news organization that was founded in 2022.
At 404 Media, each member owns an equal percentage of the company, making all decisions by consensus. This approach allows for greater job security and stability, as well as more control over editorial direction.
The Benefits of Worker Ownership
- Job Security: Worker-owned companies have been shown to have higher survival rates and fewer layoffs in recessions, thanks to a stronger sense of shared ownership and responsibility among employees.
- Financial Stability: By generating revenue through paid reader subscriptions rather than advertising, worker-owned media outlets can achieve greater financial stability and independence from corporate interests.
- Improved Journalistic Integrity: Without the pressure of advertisers and corporate overseers, journalists at worker-owned outlets can focus on producing high-quality, unbiased reporting that serves the public interest.
The Impact on Journalism
The rise of worker-owned media has significant implications for the future of journalism. By giving journalists a greater stake in their own publications, these models can help to preserve the independence and integrity of news coverage.
A study published in 2025 found that media conglomerates may prioritize profits over journalistic integrity, leading to compromised coverage and a homogenization of perspectives. Worker-owned outlets, on the other hand, can resist this pressure and produce reporting that is more nuanced and inclusive.
Success Stories
Several worker-owned news outlets have already achieved success in their first years of operation. For example, Defector reported a total revenue of $4.6 million in 2023-2024, with a focus on paid reader subscriptions and a commitment to editorial independence.
Another example is Hell Gate, which launched in 2022 and doubled its subscription revenue in its second year as a worker-owned news outlet. Its hard paywall and website redesign made it easier for readers to subscribe and access high-quality reporting.
The Future of Journalism
The rise of worker-owned media is an exciting development for the future of journalism. By giving journalists a greater stake in their own publications, these models can help to preserve the independence and integrity of news coverage.
As the media landscape continues to evolve, it's likely that we'll see more outlets adopting worker-owned models. These organizations will be better equipped to resist pressure from advertisers and corporate interests, and to produce reporting that is more nuanced, inclusive, and serving the public interest.