The Week magazine has an excellent summary of the state of newspapers, starting with this compacted bad news:
Twenty years ago, total daily newspaper circulation in the U.S. was 60 million. Today, it is 43.7 million, and many of the nation’s top newspapers are feeling the sharpest pain. Since 1996, the daily circulation of The Washington Post has dropped by 16.8 percent. The Los Angeles Times has lost nearly 25 percent of its readers, while the Chicago Tribune has dropped 15.3 percent. Many newspapers in smaller communities have gone under or been absorbed by their competitors. In 1985, some 140 towns and cities in the U.S. had more than one local paper. By 1995, that figure had dropped to 62. The Pew Research Center found that only 23 percent of people under age 30 read a newspaper daily compared to 60 percent of older people. “Newspaper readers are dying off faster than they can be replaced,” says industry analyst John Morton.