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Monday, March 14, 2011

Study: iNet Passes Newspapers As News Source

Platforms: Web rapidly graining ground

By several measures, the state of the American news media improved in 2010, according to a posting by Tom Rosenstiel and Amy Mitchell for the Pew Project for Excellens in Journalism.

After two dreadful years, most sectors of the industry saw revenue begin to recover, according to Pew's annual Media report.

With some notable exceptions, cutbacks in newsrooms eased. And while still more talk than action, some experiments with new revenue models began to show signs of blossoming.

According to the report, among the major sectors, only newspapers suffered continued revenue declines last year — an unmistakable sign that the structural economic problems facing newspapers are more severe than those of other media. When the final tallies are in, we estimate 1,000 to 1,500 more newsroom jobs will have been lost—meaning newspaper newsrooms are 30% smaller than in 2000.

People are spending more time with news than ever before, according to Pew Research Center survey data, but when it comes to the platform of choice, the web is gaining ground rapidly while other sectors are losing. In 2010, digital was the only media sector seeing audience growth. And cable news joined the ranks of older media suffering audience decline.

Digital: In December 2010, 41% of Americans cited the internet as the place where they got “most of their news about national and international issues,” up 17% from a year earlier. When it came to any kind of news, 46% of people now say they get news online at least three times a week, surpassing newspapers (40%) for the first time. Only local TV news is a more popular platform in America now (50%). The new wild card in digital is mobile. A new survey released as part of the State of the News Media find finds that 47% of Americans now say they get some kind of local news on mobile devices such as cellphones or other wireless devices (such as iPads). As of January 2011, just 7% of Americans owned electronic tablets, according to our new survey, but that is nearly double from four months prior; and 6% of American adults have e-readers.

Cable News: That activity may explain one other change in the sociology of news consumption in 2010. The audience for cable news in the last year declined substantially. In aggregate, the median viewership fell 13.7% across the entire day in 2010. Prime-time median viewership fell even more, 16% to an average of 3.2 million, according to PEJ’s analysis of Nielsen Market Research data. Daytime fell 12%.
And for the first time in the dozen years Pew monitored this segment, every channel was losing. CNN suffered most. Its median prime-time viewership fell 37% to 564,000 viewers, and MSNBC beat it in total viewers during prime time for the first time. But Fox fell, too, 11%, and MSNBC declined 5%.

Network News: If the losses were new to cable, they were not for network broadcast news. Audiences for almost every network news program fell again in 2010. Evening news audiences fell by 752,000 viewers, or 3.4%, from 2009 and have been on a downward trend for three decades. Network evening news is, however, still an extraordinarily powerful source of information in America. Some 21.6 million people on average watched one of the three programs each night. That is roughly four times the combined number watching each cable news channel’s highest-rated program. In the morning, an average of 12.4 million people tuned in each day over the year, 3% fewer than in 2009. That is the sixth consecutive year of losses. The PBS NewsHour averaged 1.1 million viewers nightly during the 2009-10 season, basically unchanged from the year before.

Newspapers: Print circulation also continued to decline in 2010. Weekday circulation fell 5% and Sunday fell 4.5% year-to-year for the six-month period ending September 30. There is some good news in those numbers, however. The losses in 2009 were double that. Online audience, though imprecisely measured, did grow some, and many papers can claim their overall audience is bigger than ever, but the data suggest that it did not fully compensate for print losses industrywide. One survey, by the Pew Research Center for the People & the Press, finds the total audience that reads newspapers, in print and online, at least three times a week dropped by six percentage points over the last two years. By this count, 40% of Americans report reading a newspaper in any form, down from 46% in 2008 and 52% in 2006.

Magazines: Circulation for the six news magazines in our report fell 8.9%. By far the largest portion of that, subscriptions, fell 8.6%, but that number is controlled, based on how much magazines want to spend to “buy” readers. Newsstand sales, which is a smaller component, dropped 17.7%. Circulation for the magazine industry as a whole dropped 1.5%.

Audio: Of all the traditional media, the audience for AM/FM radio has remained among the most stable. In all, 93% of Americans listened to AM/FM radio at some point during the week in 2010, according to data from Arbitron, and this has dropped only three percentage points in the last decade. News may have suffered more. According to the Pew Research Center for the People and the Press, 16% of Americans say they get most of their national and international news from radio, down 6% from 2009. And 34% of Americans said they got some news on the radio “yesterday,” down from 43% in 2000.

NPR, by contrast, has flourished as commercial all-news radio programming has become scarcer. NPR’s audience grew 3% in 2010, according to NPR internal data, to 27.2 million a week. That is up 58% since 2000.

But the biggest change in radio listening may be just ahead. A good deal of radio listening occurs in cars, and we are on the brink of internet radio being widely available there for the first time. Toyota is including Pandora in its multimedia system in all new models in mid-2011.  Pandora also signed a deal with Pioneer that would put its online radio service in at least six other car manufacturers by the end of 2011. People may be ready. More than quarter of Americans (27%) said they were “very interested” in online radio in the car in 2010; this is up 17 percentage points from 2009.

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