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NewsStand, Inc., the leading worldwide distributor of digital editions for newspapers and magazines, today announced results from its fourth annual NewsStand Customer Profile Study conducted by Nielsen//NetRatings, a global leader in Internet media and market research. The October 2006 study, a commissioned survey by Nielsen//NetRatings comparing digital publication readers with print newspaper readers and with the Internet general audience, continues to show increased web site visits by readers and strong user purchasing power. Electronic edition readers record healthy increases in use of publication website, email updates and RSS feeds. Their satisfaction with electronic edition use has increased steadily over four years with a total of 79% of NewsStand customers indicating high overall satisfaction, a three percentage point increase over 2005 results. For the 2006 study, NewsStand also compared web behavior with general Internet audience (Nielsen//NetRatings @Plan) and general consumers (Scarborough) over 18 years. “The 2006 results validate that customer satisfaction levels with digital delivery continue to increase. And the advertising story keeps getting better with an amazing 34 percent -- four percentage points higher that last year -- of our users reporting they made a purchase because of an ad they saw in a NewsStand digital edition,” commented Michele Chaboudy, NewsStand’s chief marketing officer and general manager. Chaboudy continued, “I’m also very pleased that the 2006 study shows that satisfaction of NewsStand magazine readers has jumped significantly from 2005 survey results by eight percentage points with a 14 percentage point increase for those indicating very satisfied. And, we are all seeing an evolution in Internet use behavior, including video clip viewing and downloads. Our users registered an eight percentage point increase over 2005 in video usage (for past seven days).” Charles Buchwalter, senior vice president, industry solutions of Nielsen//NetRatings added, “As user engagement with online news and information grows in importance for advertisers, news outlets that can offer customers formats that are tailored to their needs will have an advantage.” More about the 2006 Study Strong satisfaction with electronic editions and increased engagement with websites, email and RSS * A total of 79% of NewsStand’s users indicated high overall satisfaction with a three percentage point increase over 2005 results. * Subscribers are moving away from print a. 33% say their web site usage has increased since subscribing to ee b. 31% say they get more email updates c. 40% say their RSS usage has increased More users are purchasing as a result of advertisements in the NewsStand edition * 34% of users reported having a placed an order or made a purchase because of an ad they saw in the electronic edition (an increase of four percentage points from 2005). * NewsStand subscribers are likely to spend much higher amounts of money online as compared to the general consumer. Reaching desirable target groups * Respondents are in the higher income bracket and have advanced degrees. * Digital edition users are much more likely to seek out technology news and information. * Digital edition users depend on the Internet for a variety of activities (very high index compared to general consumers) including paying bills, checking traffic, checking weather and visiting television, newspaper and radio sites. A total of 744 respondents completed the survey, fielded by representatives from Nielsen//NetRatings in October 2006. Respondents were recruited through an email campaign generated by a client customer list. About NewsStand Inc. NewsStand, Inc. is the leading digital partner for premier publishers of newspapers, magazines and books and is one of eContent Magazine’s Top 100 Companies. Currently, the company delivers digital content and delivery solutions for over 200 magazines and newspapers as well as book publishers in more than 120 countries. NewsStand is a privately held company headquartered in Austin, Texas, with offices in New York City, Germany, and the United Kingdom. Investors include Adams Capital Management, Noro-Moseley Partners and the New York Times Company.
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For a complete copy of the 2006 study results, please email Guy Tasaka at gtasaka@newsstand.com.
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