The newspapers have only themselves to blame for the decline in revenue. The big drop off in readers began when President Bush was elected in 2000. Regardless of whether or not you liked him, his policies, whatever, the newspapers, which are overwhelmingly left, decided to play politics and dropped any pretense of objective reporting. Reporters began to see themselves as opinion-shapers, rather than just reporting the facts, and constantly and demonstrably slanted news to fit their perception, and what they wanted their readers to read, rather than just give out the facts and let the readership make up it's own mind.
Well, a lot of people didn't like that, and dropped their subscriptions. Now, newspapers make very little from subscriptions, the lion's share of their revenue comes from advertising. When subscriptions started to fall off, advertisers took notice and started to scale back advertising. The portion they scaled back went, instead, to mostly on-line sources, which could tailor their ads to select markets based upon web traffic.
In other words, advertisers are putting their money where they can get the most results, and it isn't in newspapers. If newspapers were to return to an absolutely objective reporting standard, and leave the opinions to the opinion page editor, then they might see a return of readership along with increased advertising dollars. Blaming the internet is NOT what caused their demise. It's their slanted, pro-left coverage that alienated a large chunk of their readership.
And to add to their misery, newspapers are the victim,partially, of the left's green agenda. Many folks I know stopped subscribing to "save trees and energy". They couldn't see the use of having a newspaper that was made from killing trees (I know, a renewable resource. I'm just pointing out the green's argument here) and how it took all sorts of "carbon expenditures" to make the paper and the ink and run the presses, etc. Besides there's that whole recycling thing. But I digress.
News papers need to find their way back to the objective standard and report just the facts, and let their readers decide. Until and unless they do that, they will be their own worst enemy.
Respects,