Online advertising is nowhere near to providing media outlets the revenue they need, according to a report released Thursday from the Federal Communications Commission.
The agency's highly anticipated report on the media market confirmed what many media companies already knew: while the Internet has provided new ways to communicate, it has also undermined revenue for many traditional news outlets.
"It is a myth that local newspapers suffered because they did not grow traffic online," the report finds. "From 2005 to 2009, newspapers' online traffic skyrocketed--from 43.7 million unique monthly users to 70 million, from 1.6 billion monthly page views to 3 billion page views. But in financial terms, that growth was shockingly meaningless."
In that same period, online advertising revenue for newspapers grew by $716 million, while print advertising plummeted by $22.6 billion, according to the report.
All that loss has reduced the quality of local journalism, the agency's researchers found. But the Commission was divided about how big a role the government should play in preserving and open and vibrant media. For more on the debate, visit our Tech page.
DON'T MISS TODAY'S TOP STORIES
Chock full of usable information on today's issues."
Michael, Executive Director
Concise coverage of everything I wish I had hours to read about."
Chuck, Graduate Student
The day's action in one quick read."
Stacy , Director of Communications
Great way to keep up with Washington"
Ray, Professor of Economics