Online Newspapers’ Revenues Touch Billion Dollar Mark

Eight months into 2005, eMarketer comes out with estimates on 2004 online revenues for newspapers in U.S. The meta-research firm says revenues touched $1 billion, the majority from advertising, and are expected to be about $1.4 billion by end of 2005.

The 2004 revenues were up 38%, and 2005 first-half performance signals similar gains this year.

Sobering thought: “The $1 billion mark is no small achievement,” he says, “but it was passed long ago by portals-Yahoo, Google, AOL and MSN alone generate more than eight times as much advertising revenue as the entire online newspaper industry.”

Going ahead, online newspapers should see revenue growth of more than 20% in 2006, with increases falling below that level in 2007 and 2008.

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