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Nicole Ferraro

Internet Takes the Lead With News Consumers

Written by Nicole Ferraro
3/1/2010 19 comments
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A new study by the Pew Research Center's Internet and American Life and the Project for Excellence in Journalism demonstrates that the Internet has become the third most popular platform for news consumers in the United States, with 61 percent of respondents claiming to access news online on a typical day. While the Internet's status as a go-to medium for news consumption should come as no surprise to anyone reading this here blog, the survey demonstrated some highlights for the rise of "social" and mobile news, and raises some questions on where we're headed, media- and money-wise.

After conducting a national telephone survey of 2,259 adults, Pew concluded that "people's relationship to news is becoming portable, personalized, and participatory." Thirty-three percent of respondents access news on cellphones; 28 percent of Internet users have created customized home pages with news from sources that interest them; and 37 percent of Internet users have contributed to the "creation of news, commented about it, or disseminated it via postings on social media sites like Facebook or Twitter."

Despite the Internet's gain in popularity, it still falls behind local TV stations and televised broadcast/cable news shows, to which 78 percent and 73 percent of survey respondents respectively go daily. Making the poorest showing among the various content sources were national newspapers, to which only 17 percent of surveyed Americans turn on a daily basis to read news.

There are some implications in these findings for the media industry, which is trying to figure out where to go next in order to profit from the content it provides. Many are deeming applications for mobile phones and devices like the iPad the saviors of the future (Conde Nast, for example, is discussing plans to develop Apple Inc. (Nasdaq: AAPL) iPad applications for its major magazines), but it's unclear if there are real revenue opportunities here.

Newspapers may have the most to worry about, if this survey is any indication. With fewer people reading the actual paper, and online revenue opportunities dwindling, it may take more than a giant iPod to save that industry. Organizations like The New York Times and News Corp. (NYSE: NWS) are beginning to experiment with paid models, but consumers have expressed little to no interest in shelling out cash just yet. (When Newsday.com moved to a subscription model, it gained only 35 subscribers in three months, and lost nearly 1 million unique visitors to its site.)

So where will this leave us? Not in the new media world of blogs and citizen journalism, as many have suspected: Despite the news consumers' move to the Internet, the Pew study shows that people are still more interested in "traditional" journalism, rather than unconventional news sources like Twitter or blogs. While 46 percent of all online news users are likely to visit Websites of TV news organizations, only 11 percent said they'll visit the Website of an individual blogger, 10 percent follow Twitter updates of journalists and non-journalists alike, and 7 percent said they visit sites like Digg.

In fact, what Pew's findings really suggest is that people prefer to consume the same news they always did, but on the Internet or mobile phones, thereby making it a social/customizable experience. While it's a thumbs-up in technology's direction, this will continue to present a growing problem for the media industry as it loses television viewers and paper subscribers and unsuccessfully chases online revenue opportunities.

With more people moving to the Internet to consume news content, be sure to take Internet Evolution's latest poll asking: How soon will the four major broadcast networks (ABC, CBS, NBC, and Fox) transition to Web-only operations? Weigh in with your thoughts here.

— Nicole Ferraro, Site Editor, Internet Evolution

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DHagar
Thinkernetter
Wednesday March 17, 2010 4:38:23 PM
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Very true, princess_dashco.  I believe the lasting models will provide a wide array of options of how we get the news.  I think we will end up using multiple devices to access our news, based on interest, source, etc.

I think the future will allow, due to advancements and development of the internet, us to meet our individual interests through a wider range of choices.  Smart companies will provide a multiple of solutions.  That's what customer service is, solving the customer's problems.

DHagar

Princess_dascho
IQ Crew
Wednesday March 17, 2010 2:41:59 PM
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You right DHagar, but e-readers need more time to spread out to "common people" in the future nearby. People like me still love to hold their newspapers while sitting on sofa to read. Screen's light handicaps people eyes especially those who spend  most of time before all kind of electronic devices ( I mean TV, computers, cellphones, smartphones, e-readers...). When I compare my mom's generation, to one's of my nieces and nephews, I notice that today, many them start wearing glasses around five years old. And I think, this is due to screen light. Of course, people have news on the go with their smart phones or e-readers, but their eyes might pay for it.

Paul Whyte
Researcher
Wednesday March 10, 2010 3:23:20 AM
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Hey Nicole,

In a bid to stay relevant, a newspaper in Belgium has come out with its first 3D version, complete with cardboard viewing glasses. I wonder what you would look like in one of those cardboard viewing glasses!! You should give it a try.

 

Alan Joch
IQ Crew
Tuesday March 2, 2010 3:27:03 PM
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Good point, Nicole. I guess it comes down to how readers define "value." I personally don't value opinions, no matter how well informed, enough to pay for them. I was a big fan of Paul Krugman, but when TimesSelect came along I refused to sign up. It annoyed me that the Times gated off a section of the paper that's easier to produce than investigative stories and articles that require subject-matter expertise and carefully cultivated sources. I'd be willing to pay for that type of content, especially if it's at a price point that's a bargain compared to a paper subscription. Rob's interesting Publisher's Clearinghouse model could work here, too--a Political Portal subscription, for example, could connect you to exclusive cotent from the Times, the Washington Post, and a handful of similar outlets.

Also, I assume that advertisers would be willing to spend a premium to reach these political-, business-, or international-news junkies who are committed enough to pay for their content.

Nicole Ferraro
IQ Crew
Tuesday March 2, 2010 2:13:09 PM
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Paying for access to international/business/political content on the NYTimes is an interesting idea, Alan. The only thing is that in 2005 with "TimesSelect" the Times tried to charge for access to to op-ed columnists and news columnists. That model failed and they abandoned it. Your idea is a bit different. I wonder if that would work any better.

Nicole Ferraro
IQ Crew
Tuesday March 2, 2010 2:03:20 PM
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I agree that the next couple of years are going to be interesting because we're at a crossroads where media is concerned. People are changing the way they're willing to consume it, but the business models have yet to be discovered that will support this shift. I'm not sure I believe the iPad is going to make as big a difference to the media industry as many are claiming -- in large part because the iPad seems more likely to be a niche device, and not really a default device like the iPod.

chayes
IQ Crew
Tuesday March 2, 2010 11:56:53 AM
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I think you hit it right on.  Credibility is a big issue.  With online sites competing with one another to get the scoops many are reporting false information.  Whether it is an honest mistake or they just want to put anything up knowing that they may have to put a correction up later on.  Remember the first Tweets from the Ft. Hood shootings that had information wrong?  Yet, news outlets were reporting these as if they were vetted.  I would rather not get the information as it happens if it means that is verified.

I for one would love to see a "Publishers Clearing House" model with a flat fee or perhaps fees based on how many sites you subscribe to: 1-5, 5-10 etc.  You could mix and match what type of information you want to see.  I have so many bookmarks it's hard to keep up with them.

Mary Jander
Thinkernetter
Tuesday March 2, 2010 10:08:04 AM
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Great observations here all round. I'd like to add the reasons why I prefer to get news online vs. in newspapers or on TV. (And keep in mind that I'm a boomer.)

-- TV news programs no longer report the news as they used to; instead, they are filled with mini-documentaries, multiple talking heads, and special interest side "features" that detract from a simple delivery of straight news. Further, you have to cruise several TV stations to get the right mix of international, national, and regional news, compounding the time problem.

-- Online news is fast, and I can do all my zeroing in on key headlines in moments.

-- Newspapers deliver the news but it requires a physical effort to obtain and read the news, unless you commute on a bus or train and have time to do the paper justice.

-- Blogs are fun, but I don't go to them for news reports.

robjvargas
IQ Crew
Tuesday March 2, 2010 10:03:55 AM
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I actually have two points I'd like to raise.  The first one isn't new.  it's been raised before, but recently became a bit of a topic right here at IE: credibility.  Robert Hansen posted a piece entitled, Ex-Blogger Broke Unwritten Rules.  In the case of the fired blogger that Robert cites in the piece, there is some feeling out on the Web that InfoWorld was complicit, if not actively participating, in the deception.  I think that's illustrative.

Not that there is a perception of dishonesty as illustrated by Robert's piece.  Just that I don't think the Internet has really developed a good amount of ethical "capital" from which to become the primary news source.  Not yet.

But I think that may also be tied into my second point: is there a good, reliable business model in place for providing a profitable *and* reliable online news experience?  Maybe not.

See, I don't think Internet activity is monolithic.  We here at IE, for example, we discuss and we post and we bring up points, but we do so by referencing others for the information we glean.  I've got a link above that within IE, but my participation in the conversation there includes links to other Web sites, other sources of information.  In tech discussions, I might refer to Computerworld, PC Magazine, Engadget, [H]ardOCP, and other sites.  On political forums, I might bring up Huffington Post, Heritage Foundation, Electronic Frontier Foundation, Drudge Report, and any number of other sites.

Does that kind of interaction lend itself well to (just for examples) $19.95/month for the NY Times, $5/month for Engadget, $30/year for [H]ardOCP, and so on?

I'm thinking not.  I'm far from certain on that, but I'm thinking not.  I know that I have no intention of subscribing to each and every one of the sources I use today.  And I don't believe that I'm all that far outside the norm when it comes to this topic.

So here's an intriguing thought, especially given my passion for Net Neutrality.  If single sites and sources start to independently charge subscription fees, is that an opportunity for the kinds of paid access that I believe violates Net Neutrality without said subscription fees (EDIT: I'm referring to ISP's here)?  Or, perhaps, for a kind of online "Publisher's Clearing House" service that provides a flat fee for access to multiple sites?  Maybe I should patent that idea.  Then again "Adult" sites are already doing that, having individual sites with subscription fees, but also having "access pass" services where access to a number of sites is gained for a fee smaller than subscribing to each site individually.

Yet another example where these offensive, allegedly disliked sites seem to be ahead of the less provocative side of The Internet.

Alan Joch
IQ Crew
Tuesday March 2, 2010 9:18:53 AM
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Terri, I think people may be willing to pay for "streams" of news and analysis. So in your example, conventional blogosphere opinions still won't command a premium, but perhaps specialized research that requires money and expertise to produce would be valuable enough to attract buyers.

But I was actually thinking about more general-interest outlets, such as newspapers. So, for example, in addition to a free version of the New York Times, which would include stories other pubs would cover, readers could subscribe to premium channels of international or business or political coverage. These would offer stories that readers couldn't get anywhere else and require in-depth work by prominent reporters and editors, and rack up the costs that go along with that kind of journalism.  

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