Outsell Report Shows Nearly Half of News Users Bypass Newspaper Sites in Favor of Google

Burlingame, CA and London, UK—January 19, 2010—Outsell, Inc.’s third annual News Users’ research predicts continued steep drops in US newspapers’ print circulation as consumers continue to gravitate toward the Internet for news. The firm forecasts 3.5 percent annual declines in both daily and Sunday circulation, leading to a low of 43 million Sunday newspaper readers by 2012, compared to more than 62 million in the early 1990s.

The research underscores the dramatic effect that aggregators such as Google and Yahoo have had on both print and online readership. For “news right now,” 57 percent of news users now go to digital sources, up from 33 percent a few years ago. They’re also likelier to turn to an aggregator (31 percent) than a newspaper site (8 percent) or other site (18 percent).

“Among the aggregators, Google’s effect on the newspaper industry is particularly striking,” said Outsell analyst Ken Doctor. “Though Google is driving some traffic to newspapers, it’s also taking a significant share away. A full 44 percent of visitors to Google News scan headlines without accessing newspapers’ individual sites.”

Outsell surveyed 2,787 US news consumers about their online and offline news preferences, including many “power news users” who consult news sources at least twice a day. Among other findings:

• Newspapers that see paid online content as a panacea are in for a rude awakening. Only 10 percent of news users are willing to pay for a print newspaper subscription to gain online access. Seventy-five percent say they’d turn to a different source for local online news if their newspapers required a paid subscription.
• Local newspapers retain strength with local topics, such as family events and entertainment, but there are “cracks in the house.”

To purchase News Users’ 2009: http://www.outsellinc.com/store/products/886?refid=pr886

Journalists should contact Dawn Ringel, Warner Communications, dawn@warnerpr.com.

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Outsell is the only research and advisory firm focused on advancing the publishing and information industries. Our international team provides independent, fact-based analysis and actionable advice about competitors, markets, operational benchmarks, and best practices, so our clients thrive and grow in today's fast-changing digital and global environment. Outsell’s headquarters are in Burlingame, CA, US and London, UK. Visit us at www.outsellinc.com.