This study is aimed at finding out the state of Nigerian newspapers published on the internet with a view to ascertaining the perception of Nigerian readers (audience) to them. The study will also look at the challenges and prospects of internet newspaper publishing the various problems encountered by readers as well as finding out the effectiveness of the internet as a feedback medium to newspapers stories on the internet. In the same vein, the study will also find out if the internet has also played any role in the transformation of the newspaper industry in Nigeria. The methodology for this study will be survey as it seeks to measure audience perception. Respondents for this research will be purposively sampled from the population of newspaper readers (both online and conventional) in Owerri the capital city of Imo State. Recommendations based on the later findings of this research will be made at the end of the study.