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Second Annual News User Study From Outsell, Inc. Finds 50 Percent of U.S. Consumers Consult Major Internet Sites At Least Daily for News

Posted on: Tuesday, 13 February 2007, 09:00 CST

According to Outsell's second annual study of nearly 3,000 news users, one in two tap the GYM sites (Google, Yahoo!, MSN and AOL) once or more each day for news. Internet reading is becoming a habit, especially among the young. And the Outsell, Inc. report shows no reversal of earlier trends away from print and broadcast TV.

But a closer look at the data--broken down by variables like time of day, topic, age and income--paints a more complex picture. Among the findings:

The Big Three media--TV, newspapers, and radio--joined by the GYM sites, have effectively turned into the Big Four, further disrupting the landscape for publishers, advertisers and audiences.

Morning is not the time to find news over the Web. Later in the day, though, consumers turn to "quick media" to stay informed--including TV (67 percent), GYM (31 percent), radio (29 percent), newspapers (26 percent), and other online sites (23 percent).

Paid dailies are holding their own, with 50 percent of respondents consulting a newspaper each day. Online newspapers, though, still struggle to gain anything close to the market share of print. Newspapers and their sites enjoy the highest-income audiences, ranging from business and international news ($75,000) to pro sports and news right now ($100,000).

Free papers are now pulling in a significant audience, with about 60 percent of consumers reading them once a week.

The first preference of 18- to 39-year-olds is for online news delivery. This means that newspapers, TV, and radio, with already flat growth rates, will inevitably see an accelerating decline of their legacy businesses.

Blogs now command the attention of one in four readers daily; podcasts draw one in seven.

Word-of-mouth preference for news and information is high--from 77 percent among those seeking restaurant information to 30 percent among those seeking real estate news--reinforcing the priority for publishers to harness and add user-generated content to their offerings. Overall, 33 percent of news users say word-of-mouth is part of their daily news diet.

The majority of people don't read ads in Sunday and daily papers, reducing the reading/shopping connection that has long sustained print business models. In addition, online auction sites and free classifieds products have more use than their paid counterparts.

FOR MORE INFORMATION:

Outsell information industry analysts are available to discuss the report and individual companies. Journalists should contact Dawn Ringel, Warner Communications, 781-449-8456 or dawn@warnerpr.com.

Companies that would like to purchase this search report should go to http://www.outsellinc.com/store/products/320 or contact Outsell at 650-342-6060 or info@outsellinc.com.

ABOUT OUTSELL, INC.:

Outsell is the only market research and advisory company that focuses on the entire information industry, worldwide. Our analysts and consultants work with publishers and information providers to track and respond to competitors and disruptive new entrants, changing market demands of advertisers, users, and buyers, and new technology's impact. We also work with information management executives to benchmark spending and demonstrate best practices. Outsell invests significantly in original research each year, providing relevant, actionable, and fact-based recommendations. With Outsell, information industry clients optimize their business strategies, plans, and performance. Outsell's headquarters are in Burlingame, CA, US and Outsell company EPS is based in London, UK. Visit us at www.outsellinc.com.

Source: Business Wire

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