As you know, traditional newspapers of the dead tree variety are falling victim to the Internet. Most newspapers have an Internet presence themselves, but they don't generate enough in the way of advertising dollars. And once a local paper is online, it competes with every newspaper in the world. Their only competitive advantage is local news, and so far that doesn't seem to be enough.
My solution is what I will call super-local news. It's not just news about your community, but also about your homeowner's association, your apartment building, your kids' classrooms, and the sports teams they belong to. Every family would have their own online local newspaper, assembled electronically every day based on that family's log-in information. Your personal and super-local news would include everything from world events to school lunch menus for that day. Eventually it might even include your child's report card. Obviously the schools have to be partners in this, and I think that could happen. Most school information is online already or heading in that direction. It just needs to feed to the newspaper's site for aggregation.
The key is for the super-local information to come to the newspapers from volunteers. For example, every youth sport team would have a parent with a digital camera and the willingness to upload some pictures and write a few lines about the game. A simple user interface would make it easy to integrate the news about little Becky's soccer game with news of the Lakers. They would have equal billing.
The key is to get kids interested in the online version of the super-local news. Kids care about themselves more than they care about anything else in the world. So the super-local news has to have lots of content about classrooms, Cub Scout meetings, local movies listings rated less then R, and that sort of thing.
Parents could even have the ability to manipulate their super-local newspaper and add birthday pictures, for example, and forward that day's paper to grandparents and friends.
With this concept the local newspaper extends their business model to include working with schools and youth sports teams to make sure there is a steady stream of family-oriented news in addition to world and local stuff. Once you have kids reading newspapers, the potential for advertising is much greater.
Another great service the super-local news could serve is organizing a family's schedule. Imagine if your family could add its appointments, test dates, assignment deadlines, and invitations to the super-local news so everyone in the family can see it. This would be made easier by allowing families to select what sports teams and classrooms apply to their kids so all of that schedule information populates the calendar automatically.
Done right, the super local newspaper could start capturing the business of evite.com by offering a feature to allow invitations to flow into the family's online calendar. And it could capture the Shutterfly.com business by allowing you to share pictures in a newspaper format, which could be amusing when you add your own headlines, and share them with friends.
Local newspapers wouldn't have the resources to develop the software to make this work, so I imagine the technology being developed by Google, for example, and managed by the local news folks. It would be a big job keeping the school and other super-local information flowing. And of course selling to local advertisers is best done in person.
And of course the news would have lots of Dilbert comics.
[Update: For all the people who mentioned Facebook, or RSS feeds, or other services, you're confusing the technology with the business model. -- Scott]