Report: Newspapers in Crisis

eMarketer is offering an up-to-the-minute report on the troubled newspaper industry that's certain to cause some sleepless nights among the Sulzberger clan.

The outlook for newspaper publishers is grim. Their business model is broken and advertisers are bailing. Newspaper advertising revenues in the US declined 16.4% in 2008 to $37.9 billion. By 2012, spending will slide to $28.4 billion. Is there hope for this proud medium?

The Newspapers In Crisis report analyzes the trends that are contributing to a historic downslide in newspaper revenues and readership.

Newspaper circulation continues to deteriorate as people increasingly go online for news that is timelier and free. And the relatively high fixed costs of paper, printing and distribution show no signs of waning.

And there is little relief online, where newspaper revenues are dropping as well. eMarketer estimates that even Internet revenues dipped slightly in 2008, 0.4% to $3.15 billion.

If you've got 695 spare smackers, you can have the full report.

Based on the chart, I think they're optimistic.