November 7, 2008 By Reid Goldsborough
Ever since the Internet began exploding in popularity in the mid-1990s, pundits have predicted that it would present serious challenges to daily newspapers. We're in the midst of seeing those challenges reach a crisis point.
The Internet is reducing daily newspaper profits and causing layoffs, and in a sinking economy, is leading to the demise of some print publications. Newspapers are facing the double whammy of shrinking ad revenue and shrinking readership.
The news has been grim:
Things could get much worse, opines Tim Oren at his Due Diligence blog (www.due-diligence.typepad.com). He's calling what may happen the "Newspaper Crash of 2009."
For newspaper readers, the most pronounced consequences of the newspaper malaise are fewer articles available to read with their morning coffee, more news and feature stories by writers from the national news services instead of local reporters, and the loss of favorite columnists.
The flip side is the availability of more sources of news and opinion online, one reason for newspapers' problems. Newspapers' own Web sites are among those sites that are benefiting. Newspaper Web sites attracted a record number of visitors in the third quarter of 2008, a 15.8 percent increase over the same period a year ago, according to a recent Nielsen Online report (www.nielsen-online.com).
The most popular news sites, though, are not associated with newspapers. The top four in terms of the number of visitors, according to Nielsen's latest figures, are MSNBC (www.msnbc.msn.com), Yahoo News (news.yahoo.com), CNN (www.cnn.com), and AOL News (news.aol.com). The New York Times' Web site (www.nytimes.com) is fifth.
Unlike printed daily newspapers, most news sites are free, a major attraction, though some news sites follow the increasingly standardized Web model of offering additional services for a fee.
Reading news online, as anyone who has compared the two knows, has advantages as well as disadvantages to sitting down with a printed paper. One feature that has both plusses and minuses is personalization.
With the Internet, you can not only personalize