Report: Online news consumption only area of industry showing growth

The rapid growth of smartphones and electronic tablets is making the internet the destination of choice for consumers looking for news, a report released Monday said.

The rapid growth of smartphones and electronic tablets is making the internet the destination of choice for consumers looking for news, a report released Monday said.

Local, network and cable television news, newspapers, radio and magazines all lost audience last year, according to the Project for Excellence in Journalism, a research organization that evaluates and studies the performance of the press. News consumption online increased 17% last year from the year before, the project said in its eighth annual State of the News Media survey.

The percentage of people who say they get news online at least three times a week surpassed newspapers for the first time. It was second only to local TV news as the most popular news platform and seems poised to pass that medium, too, project director Tom Rosenstiel said. Local TV news has been the most popular format since the 1960s, when its growth was largely responsible for the death of afternoon newspapers, he said.

People are just becoming accustomed to having the internet available in their pockets on phones or small tablets, he said. In December, 41% of Americans said they got most of their news about national and international issues on the internet, more than double the 17% who said that a year earlier, the report said.

In January, 7% of Americans owned electronic tablets, nearly double what it was three months earlier. Rosenstiel said it’s the fastest-growing new digital technology, ahead of cellphones when they were introduced.

From a business standpoint, however, the growth in internet news consumption hasn’t been harnessed by news companies. The project didn’t have numbers available but said online ad revenue was expected to surpass print newspaper ad revenue for the first time in 2010.

“The news business used to be the intermediary,” Rosenstiel said. “You needed newspapers and TV stations to reach your customers. In this age, it’s the device makers and software developers.”

Newspaper circulation continued to decline last year, but the rate is slowing, the report said. A survey by the Pew Research Center for the People & the Press found that 40% of Americans read newspapers, in print or online, at least three times a week, down from 52% in 2006.

Jobs have followed the exodus: Newsroom staffs are, on average, 30% smaller than they were in 2000, the project’s report said.

In a telephone survey, the project found that 28% of Americans said the loss of their local newspaper would have a major impact on their ability to keep up with local information, 30% said it would have a minor impact, and 39% said it would have no impact. (Based on a survey of 2,251 American adults, with a margin of error of 2%.)

A long-term viewership decline continues for network news, although the evening news programs continue to have significantly more viewers than cable news networks. Cable news viewership was down 14% last year and, for the first time since the project has been tracking it, dropped for each of the three networks–CNN, Fox News Channel and MSNBC.

Media Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!