Observed Signal · Sep 17, 2026 · Opinion / Interview · Source: The Drum · Impact: 2/5 · Sentiment: Positive
Star News Group publisher argues local news needs new capital
In an opinion piece on The Drum, digital media consultant Mark Challinor interviews Paul Thomas, publisher and managing director of Australia's Star News Group. Thomas discusses the challenges and opportunities for local journalism, including the use of AI in newsrooms to improve efficiency, concerns about AI platforms using original reporting without compensation, and the proposed News Bargaining Incentive in Australia. He introduces 'News for Good,' a nonprofit initiative combining Star News Group's infrastructure with philanthropic capital to combat news deserts. Thomas advocates for advertisers to view regional media spending as 'social impact capital,' noting that state governments have already committed to minimum ad spends in regional newspapers. He also emphasizes the need for commercial and editorial collaboration, reaching younger audiences through digital formats, and maintaining print while conditions allow.
Opinion piece offering strategic insights on local news sustainability, AI impact, and advertising as social impact capital; relevant to AdTech due to implications for local media monetization and platform relations.
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Key Takeaways & Evidence Grounding
- Star News Group publishes 67 local and regional news mastheads across Victoria, Queensland, South Australia, and the Northern Territory.
- Star News Group is using AI and automation for transcription, production workflows, and administrative tasks.
- News for Good is a nonprofit initiative to address regional news deserts, using philanthropy and social impact investment.
- Australian state governments have committed to minimum advertising spends in regional newspapers.
- Paul Thomas argues that technology companies benefiting from professional news should contribute to funding journalism.
Connected Companies & Entities
2 Entities mapped“While Meta has retreated from supporting news in Australia, he says Google maintains an operational relationship with regional publishers....”
“Google maintains an operational relationship with regional publishers and continues to engage on sustainability and innovation initiatives....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Future of Publishing: Innovation Over Tradition Amid Challenges
Publishers face the dual challenge of funding quality journalism while traditional ad models come under pressure. In the United States, over 54% now consume news on social and video platforms rather than on traditional publisher sites, while in Germany trust in journalism remains relatively high. Regional publishers are growing by delivering locally relevant information, and digital subscription models show some success. Advertisers are urged to support responsible journalism, with C-level commitment and recognition that open-web advertising on trusted publisher sites performs well, though planning often centers on Meta. AI can boost efficiency but also disrupts traffic and monetization, as Google AI summaries have been shown to reduce publisher visibility. A dynamic, personalized video-feed format yielded 229% higher dwell time than classic displays. Premium Supply emphasizes high-quality journalism in safe environments, with code-on-page contracts and CTV collaborations with LG and Samsung. The five-year outlook foresees more consolidation, increased AI use, and digital revenues exceeding 50% of total revenues for regional publishers.
Martin Sorrell: Traditional News Media — Adapt or Die
In an interview with The Drum, Sir Martin Sorrell warns that legacy news media face an existential crisis unless they transform their distribution, data and revenue models. He describes traditional media as a shrinking $300bn market with annual ad-revenue declines of 5–15% for outlets without live sports, while digital now represents roughly 75% of a $1.2tn advertising industry dominated by six major platforms: Google, Meta, Amazon, TikTok, Alibaba and Tencent. Sorrell argues generative AI is fully embedded in workflows but is only as good as the data that feeds it, making publishers' trusted first‑party data and clean rooms strategic assets. He advises publishers to build hybrid monetization, own first‑party data, and negotiate from a position of data control to survive platform walled gardens. His blunt verdict for legacy news organisations: "Adapt or die."
Austria: Digital Ad Spend Up, Traditional Media Down
In Austria, advertising spending on international digital platforms surged by approximately 15% to €1.5 billion in the first half of 2026, while traditional media saw a decline of nearly 8% to €840 million. These figures are derived from Austrian digital tax and advertising levy revenues, which provide a unique data source. Austria has levied a digital tax on online advertising since 2020, whereas Germany has yet to implement such a tax. The analysis highlights the growing shift of ad budgets toward global tech giants like Alphabet and Meta. Alphabet's ad business reached $294.7 billion in 2025, while Meta's ad revenue hit $196.2 billion. The data also reveals limitations, such as the exclusion of ads booked directly with Austrian portals and the difficulty in attributing revenue passed to publishers via Google AdSense. Austrian media associations are advocating for using digital tax revenues for media funding, while German publishers await further steps on a proposed digital tax.
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