A couple of interesting studies relating on newspaper issues have recently come across my screen.  Combine with continuing speculation on how long the Seattle Times will last, and the segment on the Daily Show about the New York Times last week, it’s time to share.

The Pew Internet and American Life study on online classifieds contains no big surprises.  Use of online classified ads sites has risen dramatically since 2005 while the revenue from newspaper classified ad plummeted as Craigslist became a force.

Craigslist has over 75% of the unique visitors for online classifieds in the US, and that was before the extra promotion (notoriety) that came from the change of policy around their adult services section. 

A more comprehensive look at the newspaper industry can be found in the PriceWaterhouseCoopers report, “Outlook for Newspaper Publishing in the Digital Age“.  I’m not going to attempt to summarize the study here, but just to comment on a couple of points.  You can read the press release here, and the full 50 page report is here.  PWC surveyed 4,900 people worldwide, identifying a number of different perspectives (not just the stereotype of younger news consumers preferring online).  Yes, preference for paper increases with age, but news consumers still prefer paper over online in every age bracket.  The study includes findings for why reading news on mobile devices or electronic paper (Amazon’s Kindle and the like) is not attractive to many consumers.  In the case of electronic paper, the major reason is lack of familiarity, whereas dislike of mobile devices also stems from difficulty of reading, and a desire for more in-depth information. PWC put together a nice summary of different consumer perspectives around the world in this video.

I hope that PWC’s generally upbeat perspective on the future for the industry is driven by more than the fact that the report was co-sponsored by the World Association of Newspapers.  The report acknowledges the expectation of casualties among well-known papers, but offers hope for newspapers to take advantage of the opportunities afforded by a digital world.  Perhaps PWC is right – I hope so.  But the newspaper industry doesn’t have a very good history of responding well to technology.

What of the New York Times?  I can’t blame the Daily Show for taking potshots at my favorite paper.  But I hope that the announcement in today’s magazine that it was being trimmed in size isn’t the forerunner of what’s been going on with the Seattle Times that feels like death by a thousand (OK, less than 10) cuts. Newsprint costs have increased, for sure, in part driven by transportation costs. But newsprint suppliers have also been cutting production, at a time when worldwide demand seems to be increasing (democracy anyone?). How ironic if the suppliers are cutting their own throats.

Bloggers, Online Ads, the Great Recession.  Big threats bring big opportunities.  Will the existing newspaper industry evolve to meet the challenges?

Idiosyncratically,
Mike Pritchard