Impact of Television and Internet
Main article: Future of newspapers Further information: Online newspapersBy the late 1990s, the availability of news via 24-hour television channels and then the Internet posed an ongoing challenge to the business model of most newspapers in developed countries. Paid circulation has declined, while advertising revenue — which makes up the bulk of most newspapers’ income — has been shifting from print to the new media, resulting in a general decline in profits. Many newspapers around the world launched online editions in an attempt to follow or stay ahead of their audience.
However, in the rest of the world, cheaper printing and distribution, increased literacy, the growing middle class and other factors have more than compensated for the emergence of electronic media and newspapers continue to grow.
On April 10, 1995, The American Reporter became the first daily newspaper, with its own paid reporters around the world and all-original content, to start on the Internet. The editor-in-chief and founder is Joe Shea. The site is owned by 400 journalists.
The future of newspapers in countries with easy internet access has been widely debated as the industry has faced down soaring newsprint prices, slumping ad sales, the loss of much classified advertising and precipitous drops in circulation. In recent years the number of newspapers slated for closure, bankruptcy or severe cutbacks has risen—especially in the United States, where the industry has shed a fifth of its journalists since 2001. Revenue has plunged while competition from internet media has squeezed older print publishers.
The debate has become more urgent lately, as a deepening recession has shaved profits, and as once-explosive growth in newspaper web revenues has leveled off, forestalling what the industry hoped would become an important source of revenue. At issue is whether the newspaper industry faces a cyclical trough, or whether new technology has rendered obsolete newspapers in their traditional format.
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