Internet Adoption and the Survival of Print Newspapers: A Country-Level Examination

20 Pages Posted: 13 Mar 2015

See all articles by Daegon Cho

Daegon Cho

College of Business, Korea Advanced Institute of Science and Technology (KAIST)

Michael D. Smith

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management

Alejandro Zentner

University of Texas at Dallas - Naveen Jindal School of Management

Date Written: February 11, 2015

Abstract

In this paper we examine the effect of Internet adoption on daily print newspaper circulation and newspaper survival rates. We use country-level yearly panel data from more than ninety countries for 2000 through 2009 containing information on Internet penetration, daily local and national print newspaper circulation, and the number of local and national print newspaper titles. Our results show that increases in Internet penetration can explain a large fraction of the decline in newspaper circulation and in the number of newspaper titles observed in recent years. Internet adoption appears to affect local newspapers to a greater extent than national newspapers, which might be due to local newspapers’ greater reliance on classified advertising. Our results further suggest that Internet adoption decreases country-level circulation rates by driving newspapers out of business without significantly affecting the net circulation rates of surviving newspapers. Because newspaper readership has been linked to the health of the democratic system, the importance of examining the decline of the newspaper industry extends beyond the literature on the media industry.

Suggested Citation

Cho, Daegon and Smith, Michael D. and Zentner, Alejandro, Internet Adoption and the Survival of Print Newspapers: A Country-Level Examination (February 11, 2015). Available at SSRN: https://ssrn.com/abstract=2576999 or http://dx.doi.org/10.2139/ssrn.2576999

Daegon Cho

College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )

85 Hoegiro, Dongdaemoon-gu
Seoul 02455
Korea, Republic of (South Korea)

Michael D. Smith

Carnegie Mellon University - H. John Heinz III School of Public Policy and Management ( email )

Pittsburgh, PA 15213-3890
United States

HOME PAGE: http://www.heinz.cmu.edu/~mds

Alejandro Zentner (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
279
Abstract Views
1,042
rank
109,885
PlumX Metrics