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26 Nov 09 US Readers Are Ready to Pay $3/Month for Online News Yet Online Revenue Has Fallen By 17%, Why?

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.

Highlights of the survey

  • 67 percent of total respondents (across surveyed nine countries) showed their willingness to pay for unique content.
  • 72 percent of the US respondents consented to pay for unique content.
  • 73 percent of the US respondents and 63 percent of total respondents said they will pay for specialize coverage.
  • 61% of the US respondents and 54% of total respondents showed their interest in timely news content like, continual news alert service.
  • Respondents also showed their willingness to pay if the news content is delivered to the devices of their choice.

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.

Missed opportunity

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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