Chris Hedges, former Bureau Chief in Jerusalem for the NY Times, writing in truthdig.com. addresses the real problem of declining newspapers and the effect on democracy as a consequence:
"The decline of newspapers is not about the replacement of the antiquated technology of news print with the lightning speed of the Internet. It does not signal an inevitable and salutary change. It is not a form of progress. The decline of newspapers is about the rise of the corporate state, the loss of civic and public responsibility on the part of much of our entrepreneurial class and the intellectual poverty of our post-literate world, a world where information is conveyed primarily through rapidly moving images rather than print.
All these forces have combined to strangle newspapers. And the blood on the floor, this year alone, is disheartening. Some 6,000 journalists nationwide have lost their jobs, news pages are being radically cut back and newspaper stocks have tumbled. Advertising revenues are dramatically falling off with many papers seeing double-digit drops. McClatchy Co., publisher of the Miami Herald, has seen its shares fall by 77 percent this year. Lee Enterprises Inc., which owns the St. Louis Post-Dispatch, is down 84 percent. Gannett Co., which publishes USA Today, is trading at nearly a 17-year low. The San Francisco Chronicle is now losing $1 million a week.
The Internet will not save newspapers. Although all major newspapers, and most smaller ones, have Web sites, and have had for a while, newspaper Web sites make up less than 10 percent of newspaper ad revenue. Analysts say that although Net advertising amounts to $21 billion a year, that amount is actually relatively small. So far, the really big advertisers have stayed away, either unsure of how to use the Internet or suspicious that it can’t match the viewer attention of older media."