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Not sure CNN is good proxy for RSS - many folks not using RSS for CNN because they get CNN via Twitter etc or visit it x times/day anyways?

Seems like much (half?) of RSS market is folks monitoring streams of websites that they don't visit regularly or monitor w/ non-RSS solutions?

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Out of all the feeds that I checked CNN had the largest number of Google Reader subscribers. If you are right, I would argue that CNN market penetration is lower then 50% and thus the feed reader market would be bigger.

Good point, I would guess it is lower than 50% of total (irrespective of active vs. not active).

Not sure where you sourced your GR data but maybe the ratios of GR/uniques across a few different types of sites to find out if GR ratios varies by site type could sharpen the straw man.

Agreed.

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