So a challenge-how to make hyperlocal pay

I thought that this story piece summed up the state of the media industry at the moment.

If you are ultralocal or hyperlocal enough to be interesting to your community you are almost by definition serving an audience niche too small to be funded by advertising

(Ht Charlie Beckett)

And that's the dilemma for the media.Technology has created the platforms,the demand for content is there but nobody is willing to pay for it

As the piece continues

There is a paradox for local news - it can’t support its industrial era costs in a world where interest in news is moving online. But at the same time conventional local news isn’t interesting enough to people because it isn’t local enough. So it faces a lose-lose situation - to cut costs (and still broadcast or print) it has to concentrate production at a regional level and so is less interesting to its audience. Communities lose out as they lose an albeit imperfect voice.

So this is the challenge.How can we make content interesting,relevent to the audience and most importantly profitable?