This is how Merryl Lynch titled its report on the US newspaper industry. The culprit? media consumption habits are changing (more screen, less paper) and advertising/classifieds business is moving online. Interestingly, the report's analyst think that when they push their online services, newspapers are underpricing. My personal experience talking to newspaper ads sales guy is that they will throw in the online ad if you book ads in their paper... Time to rethink that business model.
I enjoyed reading more about this from Adhurl who thinks Mr. Murdoch ultimately has a plan (MySpace?) and Maddie Hanna.