Regional newspaper companies are continuing the evolution into multimedia businesses, producing up to 25 per cent more websites and niche publications in 2006, compared with 2005, according to the Newspaper Society.

Its Annual Regional Press Survey showed that the number of regional press websites, radio stations and niche publications all grew by between 21 per cent and 25 per cent - with the number of websites produced up from 828 to 1,102.

The number of core regional newspaper titles went up slightly to 1,303, while the number of stand-alone magazines and niche publications went up from 595 to 755.

The industry now has 36 radio stations and two television stations, in addition to the online 'television' services and video streaming available on many local newspaper websites.

NS president Russell Whitehair, chairman of NWN Media Limited, said: "The regional press is growing and reaching new audiences across its print and digital platforms.

"We know that 40m people already read a local paper in print. Growth in local newspaper websites means they now collectively represent one of the top UK online properties, attracting an estimated 20m unique users a month."

But despite the growth in local press websites, online advertising revenues accounted for just 2.5 per cent of total regional press ad revenues, with print contributing 94.5 per cent.

Advertising and sponsorship accounts for 73.2 per cent of the total turnover of the £4m industry, with circulation sales contributing 15.4 per cent and contract printing accounting for 5.1 per cent.

Other revenue included photo sales, IT services, training, rent, canteen, waste sales, editorial syndication and telephone promotions.

According to the survey an estimated 49,246 staff are employed within the regional and local press, with a full-time equivalent level of 43,554. Editorial staff make up 26.6 per cent.

This compares to an estimated 52,889 staff in 2005, with 25.4 per cent working in editorial.