There is a long way to go before papers get to the new business model

The latest figures for the United States show that revenue form online is nowhere near the point where it can replace print revenues.

This from Follow the media

Print revenues were down 9% to $10.1 billion. Online grew 21% to $773 million. That means that online advertising is now about 7.1% of the industry’s revenue – up from 5.4% in Q3 – but a closer look at the numbers should have the alarm bells ringing for last year in Q3 online growth was 25.3%, so things are slowing down. And since print’s advertising losses are getting bigger by the quarter that’s a recipe for even deeper gloom ahead.

So across the Atlantic the new business model for the media has yet to take off.

Some hope though possibly in the model as the report tells us

There are newspaper companies, however, that are weathering the storm because they diversified. Take the Washington Post Company. Its newspaper is sharing the same suffering going on elsewhere, but the share price of Washington Post Company itself has grown 4% this year. The newspaper publishing division saw revenues down 7% in Q3, but the revenue from its education division grew by 22% meaning the Kaplan business is now bringing in 50.3% of the company’s total revenue and that figure is sure to grow as print, tv and magazines continue to decline.