The internet and the market for daily newspapers

A growing literature documents that electronic media draw consumers from traditional media markets. Less work examines how the internet has altered the audience for traditional media. Using zipcode-level newspaper circulation and market-level internet penetration, this paper provides evidence that the internet differentially attracts younger, educated, urban individuals away from daily newspapers. Greater internet penetration is associated with higher newspaper circulation among blacks and Hispanics, who thus far are less likely to connect. Evidence suggests the spread of the internet is also associated with changes in newspaper coverage, with greater emphasis on minorities, education, crime and investigative reporting.