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The Effect of the Internet on the Newspaper Industry’s Revenues

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The Effect of the Internet on the Newspaper industry’s Revenues
Emily Ford
University of Maryland University College

The Effect of the internet on The Newspaper Industry’s Revenues

The newspaper industry is currently in the midst of a financial crisis due to the increased competition from news outlets on the internet and the changes in how the public chooses to access information. In 2011 seven major American newspapers declared bankruptcy. Of the roughly 1400 newspapers in the nation approximately half will go out of business in the next decade. Between the years 2001 and 2008 average print circulation went down by 13.5%. Over 80% of newspaper revenues are generated from their advertisement sales, however, among newspapers with an ancillary websites, they average less than 10% of these revenues from their web-based content (Kirchhoff, pp. 2-4). The struggle facing the newsprint media is their inability to make a profitable transition to web-based platforms. This paper will explore many of the challenges involved in making that transition as well as offer up possible strategies that the print media could utilize in the future. It is imperative that the content follow in line with what the medium demands, in order to flourish in the new frontier of distributing the news (Postman, p. 88). The newspaper industry as a whole has been slow to embrace the new internet based technology. They have yet to be successful in walking the line between traditional print content and the interactive multimedia demanded by online readers. In order to stay afloat in the coming years print media must adopt a more modern user interface and business model that will be viable in conjunction with online advertising standards. Advertising revenues account for the vast majority of income for newspapers, unfortunately as print circulations have declined and more readers are moving

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