U.S. newspapers report poor revenues from digital content

The revenue that U.S. newspapers generate online, does not compensate the loss of sales of the paper versions yet. For every digital dollar gained, seven are lost due to declining sales of newspapers, says a study by the Pew Research Center.

The study was conducted from late 2010 until early 2012 and researchers were allowed to use confidential commercial information of 38 newspapers from six different groups. Combined, those newspapers still get 92 percent of their revenue from their paper editions. "We discovered a sector that is struggling to make the transition to an economic model that is able to replace the traditional business of selling newspapers, while revenues from advertising in the newspapers have dropped more than 50% in a few years time," said the researchers.

The report reveals that many newspapers have responded to the poor advertising climate by increasing the price of subscriptions. "But in doing so, the overall turnover of these newspapers has plummeted by 40% over the past decade," it reads.

According to the Pew Research Center, some media companies are doing better than others. The best performing newspapers are those that can offer their advertisers clear target groups in terms of consumer types on the Internet.

Sources: De Morgen, Pew Research Center