Smartphones bring mixed blessings for newspapers

The growing popularity of smartphones is proving a double-edged sword for newspaper publishers, with the number of consumers reading more content online almost exactly counterbalanced by a decline in those buying print products, according to a report from Orange. The telecoms company’s study found that 14 percent of people who access the internet on their mobile phones said they read fewer newspapers as a result. On the flipside, 13 percent of respondents said that owning smartphones such as the iPhone had led them to read more newspaper content online. However, the same is not true of all publishing sectors with 16 percent of mobile media users – those accessing the internet via a smartphone – saying they read fewer magazines, but none saying they read more magazine content online. The problem for newspaper publishers is the gap between declining print circulation and revenue and the relatively small revenues from products such as smartphone apps and mobile internet advertising. The Interactive Advertising Bureau puts the UK mobile internet ad market at just under GBP 40m in 2009. Orange’s report points to the potential of mobile commerce, in which it includes the purchasing of apps, but does not provide any insight into revenue generation

http://www.guardian.co.uk/media/2010/oct/06/smartphones-newspapers-orange-report

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