*A new report says that the state of the U.S. news media improved in 2010, at least in comparison with a dismal 2009.

Newspapers were the only major media sector to see continued ad revenue declines, down 6.4%.

However, as online news consumption continues to grow – it surpassed print newspapers in ad revenue and audience for the first time in 2010 – a more fundamental challenge to journalism also became clearer.

The news industry in the digital realm is no longer in control of its own destiny, according to the State of the News Media report from the Pew Research Center’s Project for Excellence in Journalism.

That’s because online, news organizations increasingly depend on independent networks to sell their ads, on aggregators and social networks to deliver a substantial portion of their audience, and now, as news consumption becomes more mobile, on device makers (such as Apple) and software developers (Google) to distribute their content. And the new players take a share of the revenue and in many cases, also control the audience data.

Read the full report HERE.