What are the key challenges facing the online newspaper industry?

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In the next five years, the newspaper industry faces significant challenges and opportunities as the online audience grows in both numbers and sophistication. New technology challenges and costs include developing wireless mobile delivery platforms and micropayment systems to provide a low-cost mechanism for selling single articles. Consumer attitudes have remained intransigent on the issue of paying for content. Some online newspapers have experienced the cannibalization of their main distribution channel. However, online newspapers are slowly learning to add value to their content by providing additional services, content, and depth. 

Another main challenge is digital leakage that occurs when a paid for and downloaded article is redistributed via e-mail or posted to a Web site where millions of others can view it for free. Current digital rights management software does not conveniently permit newspapers to charge each additional reader of a redistributed article. The DMCA does provide some protection by making it illegal for ISPs or their Web servers to store and distribute pirated copies of copyrighted works.

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