According to the study, the websites of big papers such as The New York Times, Washington Post and USA Today are still growing their traffic at an average 10% rate annually. But smaller newspaper websites may in fact be losing audience.

“That, of course, goes against all the spin of newspaper trade organizations such as the Newspaper Association of America (NAA) that continually promotes how newspaper web sites are each quarter growing their traffic,” commented Follow the Media.

To make things worse for newspapers, the study reports that brand name television networks are increasing traffic by about 30% annually, quickly catching up with newspaper websites.

“The Web particularly threatens daily newspapers,” the report said. “They were among the first to post news on the Internet but their initial advantage has all but disappeared in the face of increased competition from electronic media and non-traditional providers.”

The Web also privileges big brand names, the “relatively few news organizations that readily come to mind by Americans everywhere when they seek news on the Internet,” said the report.

So local newspapers’ websites are facing increased competition both from the national titles and from other media. They still have a significant advantage over their competitors: local coverage. If they continue to cut their costs at the detriment of local coverage though, the Internet could be more of a trap than a salvation for smaller newspapers.

Source: Follow the Media