Houston Landing to Shut Down Amid Financial Challenges

Introduction to the Problem

Amid financial challenges, the nonprofit Houston Landing online news outlet plans to shut down by mid-May. The outlet, which launched in 2023 with more than $20 million in seed funding, failed to attract enough revenue to continue operating.

Background and Reason for Closure

In an April 15 announcement posted on its website, Houston Landing says that despite the significant initial funding, the outlet struggled to find its long-term financial footing. The announcement followed a vote by the organization’s board of directors to close the nonprofit newsroom. All 43 employees will be laid off, according to the Columbia Journalism Review. This decision was made after efforts to establish a sustainable financial model proved unsuccessful.

Reaction from Leadership

Ann B. Stern, board chair of Houston Landing as well as president and CEO of the Houston Endowment, expressed pride in the outlet’s coverage of Greater Houston. Stern noted, “We continue to believe deeply in the need for more free, independent journalism in our region. This decision was difficult but necessary. Houston Landing’s reporting has made a meaningful impact in the community, but it struggled to find its long-term financial footing.”

Exploring Future Partnerships

The Landing’s board is exploring a partnership with the Austin-based Texas Tribune, a pioneer in nonprofit journalism, to potentially establish a local news initiative in Houston. Later this year, the Texas Tribune plans to open a locally focused newsroom in Waco, with a similar newsroom in the works in Austin. Sonal Shah, CEO of the Texas Tribune, stated, “We have great respect for Houston Landing’s work in delivering high-quality, nonpartisan journalism to its readers. We also understand the profound challenges facing local newsrooms today — journalism is a public service and needs a strong ecosystem to thrive.”

Challenges Faced by Houston Landing

Houston Landing was launched after a two-year study led by the American Journalism Project found many Houstonians were disappointed about a lack of trustworthy, deeply reported local news. Despite high-profile support from financial backers including the American Journalism Project, the Houston Endowment, Arnold Ventures, the Kinder Foundation, and the John S. and James L. Knight Foundation, the site struggled to find an audience. The Landing had approximately 13,000 newsletter subscribers and only generated about $80,000 in subscription revenue.

Reflections on the Closure

Executive editor Sewell Chan identified a number of issues, including a lack of editorial focus and changes in leadership, contributing to the outlet’s struggles. “But in the end, the gap between board and staff, between management and labor, and between runway and revenue was just too large to bridge,” he wrote. Houston Landing CEO Peter Bhatia expressed gratitude to the dedicated journalists and staff members, saying, “Houston Landing demonstrates how a commitment to truth and accountability can transform communities and improve lives.”

Conclusion

The closure of Houston Landing highlights the challenges faced by local news outlets in maintaining financial sustainability while providing high-quality, independent journalism. Despite the efforts and initial funding, the outlet was unable to overcome its financial challenges. The potential partnership with the Texas Tribune offers a glimmer of hope for the future of local journalism in Houston, emphasizing the need for a strong ecosystem to support public service journalism. The legacy of Houston Landing serves as a reminder of the importance of truthful and accountable reporting in transforming communities and improving lives.