9

2. Background: U.S. Newspapers
and the Changing Competition Dynamics. .................................

17

2.1. U.S. Newspapers as Local Monopolies . .............................

18

2.2. Information Surplus.............................................................

18

Too Much Information even at the Price of Zero................

19

News Losing Attention Share ..............................................

21

News Becoming a Commodity ............................................

22

2.3. The Rise of Aggregators......................................................

24

News Aggregators Outperform Newspaper Sites................

24

An Ambiguous Relationship
Between Newspaper Sites and Aggregators........................

25

3. Misinformed Technology-Driven Strategy...............................

29

3.1. The Death Narrative.............................................................

29

3.2. Theory of Disruptive Technology........................................

31

3.3. The “Newspaper Next” Project............................................

33

3.4. Collective Anxiety and Irrationality during the Recession...

35

3.5. Problems of Disruptive Technology Theory........................

40

4. Demystify Multiplatform Audiences . .......................................

45

4.1. Traditional vs. New Media: Three Approaches ..................

46

4.2. A Typology of Multiplatform Newspaper Audiences.........

48

4.3. Newspaper Readers in the Local Market:
Print, Hybrid, and Online-Only .........................................

51

4.4. “Digital Natives” and the “Dead-Tree Edition”...................

57

5
Issue 2013

1. Introduction.................................................................................

Number Fourteen

CON T E N T S

Number Fourteen

CON T E N T S

Issue 2013

6

5. Perceived Inferiority of the Online Edition..............................

63

5.1. The Performance Gap: An Inconvenient Truth? .................

63

5.2. Online Edition: The Problem Child . ..................................

65

Usage: Low Penetration, Low Engagement........................

65

Preference: Negative Perception.........................................

67

Paying Intent: Or the Lack Thereof.....................................

68

5.3. Online News: An Inferior Good..........................................

69

An Exploratory Focus Group Study....................................

69

Hypothesis Testing with Pew Data......................................

73

Hypothesis Revisited with Pew Data...................................

74

Online Edition Perceived as Inferior:
Side-by-Side Comparisons...................................................

75

Preference for the Print Format among Future Adults .....

76

5.4. Why is Online News Inferior?.............................................

77

Physical Explanations:
The Less-Than-Satisfactory Online Reading Experience ....

78

Psychological Explanations:
Online News is Free.............................................................

79

Biological Explanations:
The Power of Tangible Materials.........................................

80

5.5. Managerial Implications......................................................

81

6. From the Web to Mobile and Social Media...............................

83

6.1. The Web and its Broken Revenue Models...........................

83

Online Advertising...............................................................

83

Paywalls...............................................................................

84

87

News Use on Mobile Devices...............................................

88

Mobile Advertising ..............................................................

89

Paying for Mobile News.......................................................

90

6.3. Will Social Media Save Newspapers? ................................

90

7. Conclusion....................................................................................

93

7.1. Suggestions for Newspaper Executives................................

93

7.2. Cultural Implications...........................................................

97

R eferences. ...................................................................................... 101
Media Markets Monographs Series............................................... 121

7
Issue 2013

6.2. Mobile: The Future of News? .............................................

Number Fourteen

CON T E N T S