This study analyzes the online performance of U.S. newspapers in their local markets compared to print editions and competing online news sites. It finds that on average, a newspaper's online readership is 23% of its print readership. Yahoo! News, MSNBC, and AOL News ranked as the top 3 news sites in local markets, while local newspaper sites ranked 11th. The study also examines factors associated with online readership and performance metrics of newspaper sites versus other news sites. It calls for recognizing the complex dynamics of inter-media and intra-media competition in local news markets.