Local media companies must reinvent themselves by adopting the mindset of software-as-a-service (SaaS) businesses, says Todd Handy, founder of Disruptive Impact and a board member for the Local Media Association.

Speaking on the Keep It Local podcast, Handy discussed his report, The SaaS-ification of Media, published by the Local Media Innovation Alliance, which outlines how publishers can build predictable, recurring revenue through retention and customer value rather than one-off sales.

Handy said his framework is rooted in the principles that have sustained successful tech companies for decades — subscription-based relationships, long-term customer engagement and measurable lifetime value.

“The ‘SaaS-ification of media’ is about stealing the best playbook from these software companies,” Handy said. “It’s about building recurring revenue. It’s about customer retention. It’s long-term relationships, so you don’t sell one-off products.”

Many publishers, he said, face 30 to 35% monthly churn, a cycle that makes growth nearly impossible. Handy argues that local media must focus on SaaS-style metrics such as customer acquisition cost, lifetime value and net revenue retention to understand business health and sustainability.

He also pointed to the need for infrastructure — particularly customer relationship management (CRM) systems — to track renewals and upsells, and to encourage packaging that creates continuity rather than short-term campaigns.

“If you don’t have a system of record — if you’re not tracking renewals, upsells and advertiser relationships — you’re flying blind,” he said.

Handy’s consultancy conducts go-to-market audits to help media organizations assess their readiness for this transformation. He said embracing the model could stabilize balance sheets and reduce reliance on unpredictable ad sales. Ignoring it, he warned, could accelerate the decline of local media.

“If publishers embrace this, we could see a completely different landscape,” Handy said. “Conversely, if we ignore it, we already know what the story has been — declining ad dollars, constant churn, more consolidation and probably more closures.”

Handy’s full report, The SaaS-ification of Media, is available (click here) through the Local Media Association. He also offers the Go-To-Market Audit framework for free at disruptiveimpact.co.

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Editor’s note: Artificial Intelligence was used to transcribe and create an initial summary of this article, which was then edited by LMA staff.