Local News Franchise Model

Andrew discusses building local news operations in smaller cities, focusing on dominating local markets that larger players ignore. The strategy leverages the inherent moat of local news businesses in mid-sized cities.

Key Points:

• Target Market:

  • Cities with 50,000 to 300,000 people
  • Focus on local markets others consider too small
  • "Fishing where the fish are off the beaten path"

• Business Model Advantages:

  • Local news has better competitive moats than national news
  • Ability to dominate local markets
  • Operating in markets "nobody wants"
  • Similar to local franchise model

• Growth Strategy:

  • Focus on markets that seem small but are defensible
  • Build strong local presence
  • Leverage the natural monopoly characteristics of local news

• Competitive Advantage:

  • Natural geographic moat in each market
  • Less competition due to market size
  • Ability to build strong local relationships
  • Established business model similar to successful local franchises