Processing .....please wait.. 
The article has been forwarded.... 
Are you leaving your newspaper for online content?
By siliconindia
|
Tuesday, 13 October 2009, 22:18 IST |
5 Comments
London: More than a quarter of the people in UK have cut back spending on magazines and newspapers in favor of free online content, due to the economic downturn. The survey commissioned by financial firm, KPMG (figures were compiled by YouGov) shows that 28 percent reduced newspapers and magazine purchases in favor of free online sources, since the recession began, reports Telegraph.
However, as more news outlets consider charging for their internet offering, the report shows that there is little appetite for subscription services in the immediate future. Only 11 percent of consumers pay for any online media and of those who do not currently pay, only a further 11 percent say that they may begin any sort of subscription in the next 12 months.
The pattern is unlikely to reverse dramatically when things pick up financially. Only 3 percent of those who had cut back said they would return to their previous spending levels for such things. Of those that do spend on online media, 21 percent paid for online TV, 19 percent for on-demand films and 17 percent on music. Just seven percent paid for any online newspapers or magazine content.
KPMG's Media and Entertainment Barometer found those who had paid for any online content in the past month had spent far less than they would have done for traditional media. The typical spend for new media for the month would have been below two punds, while traditional media spending would have been between five pounds and 20 pounds.
David Elms, Media Partner at KPMG, said that the study shows the impact of structural change on the media sector. "The challenge for the sector is that consumers are not transferring their spending to online media," said Elms. "Monetising online content is the holy grail of the media sector. The challenge is changing the mindset of a consumer population that is used to accessing free online content. While our survey shows that few people currently pay for online media content, that perception is there to be challenged."
The study showed almost half of respondents (47 percent) had visited a social networking or blogging site in the past month, while 37 percent had viewed online news, and 22 percent had downloaded music.
