News organizations in the U.S. are facing a worsening financial struggle as they look for alternative sources of revenue.
A new study from the Project for Excellence in Journalism, dubbed State of the News Media 2007 has found that the Internet has not garnered new sources for revenue as they had hoped. Internet advertising especially has not lived up to the high hopes that news organizations, especially newspapers, have held for it.
"The hope that Internet advertising will someday match what print and television now bring in appears to be vanishing," the study stated. Charging web users to access news is one possibility that could garner the extra income needed, the study suggests.
In the last few years, newspaper stocks have been steadily declining as consumers turn to other outlets to get their news. Newspaper analyst John Morton told Reuters that newspapers must invest more heavily in new technology and devising ways for it to pay off.
"What we have discovered is that newspapers have moved quicker than broadcast TV stations in adapting to the online video advertising marketplace," states Mark Weibel EVP of Marketing for Broadband National, who operates the industries leading comparative shopping website. "Estimates are that the local online video advertising marketplace will reach $371 million this year or about 5% of total online ad spending. And that traditional media, especially newspapers are playing a significant role."
For more information on broadband Internet access as well as other digital products and services visit www.broadbandnational.com
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