I work at a newspaper that is among those that has posted a large drop in circulation in the new ABC audit. However, what we did was to purposely drop the questionable fluff circulation (which was expensive to maintain) for good, solid, real circulation.
Now a few other points:
Most newspapers in this country are doing very well financially (I work for an unfortunate exception, but at least our parent company is still doing well). I don’t have a cite for this, but go to the NAA website and you’ll probably find something there.
This is because, IMO, in most cities and towns there is very limited competition among newspapers. One good example is the one I used to work for, the Oregonian in Portland. It is a regional newspaper that has no significant newspaper competition in Portland, and is subscribed to all over the state (ok, I haven’t been there in a while, so this could have changed, but for illustration purposes…). In smaller communities, the newspaper is the local forum for everything that local people are interested in. It may not be their source for hard news, but it is their source for a lot of other things.
Second point is that newspaper publishers are not stupid. They see the writing on the wall as clearly as you do. For that reason, most larger newspapers are heavily invested in the internet, and are calling themselves communications companies, not newspaper publishing companies. Our website is consistently among the top 5 news sites in the country, based on page views. So they are trying to expand in other areas, and constantly trying to develop new advertising models for those areas to pay the bills.
Third point is that competition with radio and TV is not the problem. For what it can deliver to an advertiser, newspapers are far better at bringing in warm and hot prospects. Radio and TV can deliver some cooler prospects, unless there are too many details in the ad for the viewer/listener to remember without taking notes. And an ad for Tide detergent on TV can work, but an ad for Tide in the newspaper can include a coupon. The real competition now is with the internet, viz. previous paragraph. The real killers on the internet are not news sites but advertising sites like Craigslist.
If newspapers can hang on until technology can free them from the necessity of actually printing physical newspapers on newsprint (that’s the real expense item for us) then they can really be in charge, because they really know how to collect and disseminate news and other information. Think of the scene in Minority Report, I think it was a commuter train, when Tom Cruise’s character is trying to escape, and everyone’s newspaper/video screen changes dynamically to show his photo. This technology is not far off, and I think it will revitalize large newspapers like mine, if it can be made affordable for subscribers.
Whew, sorry to go on so long, but you hit a sore point. I’m trying to hang on in this business until retirement (9 or 10 more years) and it’s a bit nervous-making.