A new BIA-Borrell Associates study concludes that online news sites are hitching themselves to a falling star in remaining tethered to the newspaper. Declining revenues in print will only harm the business opportunities for online. Pure-play online sites are best positioned to weather the storm, the report notes.
The reason newspapers may need to be severed is that their online revenue isn't expected to grow dramatically in the context of declining print revenue.
The report set out to valuate Web sites. The median newspaper Web site: $3.5 million.