In a recent study conducted by Boston Consulting Group (BCG), the US online users are willing to pay $3/month for online news (and Italians are willing to pay $7 for the same). The survey was conducted in nine countries and total number of participants was 5,000.
Now, let’s juxtapose this result with the revenue data released by the Newspaper Association of America.
According to the figure released by the Newspaper Association of America, online advertisings revenue has fallen by 17% from $750 million in the third quarter in 2008 to $623 million in the third quarter of 2009. This is the sixth straight quarterly decline.
Sole reliance on advertising dollars is costing the newspaper industry its life (both online and print). Instead of chasing the advertising dollars, the online news media should focus on generating unique local content that could be delivered in many formats across the media on various devices.
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