Click on Paper Cuts Out of Print and see the daily newspapers in the US which closed down this year. Each black dot on the map is a newspaper which closed. Now, un-tick the 2009 box at the bottom of the map and click on 2008 and then 2007. See the trend.
Alan Mutter (a veteran media executive) has written an insightful blog post about the closures and the state of play of newspapers in the US. I urge you to read this.
While there are differences in our newspaper model here in Australia compared to the US, the fundamental challenges are the same.