Nick Carr summarizes a study in the UK that suggests more perils for news organizations as they move online. The online editions appear to be “cannibalizing” the offline edition readership. A university study looked at how online news readers are less likely to buy a newspaper from the same company they read online.
If this proves true across the newspaper landscape it presents newspapers with the twin challenges of needing to beef up the online portal to keep up market share even as their total advertising revenues are tending to go down. Offline readership generally gives a better ad return per reader, so even as online advertising increases that extra revenue is not likely to keep pace with the offline losses.