The Tribune Company announces steep circulation declines in their Chicago and Los Angeles papers, while also reporting equally equally deep drops in profits. Its largest rag, The Los Angeles Times, discredited itself with last—minute allegations against Arnold Schwartzenegger just prior to the gubernatorial recall. As angry readers deserted them, the LAT lost 6% of its readership in a six month period. Any company losing customers at a rate of 12% per annum is heading for disaster. The Chicago Tribune lost 2.5%, which is probably closer to a longer term trend line. But five percent a year decline in business is still close to a death spiral range, if it continues. Newspapers in big cities have been losing circulation for decades now.

All of mainstream media must be worried, because they are not alone.  

In other major media markets the Houston Chronicle and the Dallas Morning News have both begun extensive work force reductions related to...circulation declines. Like the Tribune Publishing Company, phony puffed circulation figures contributed to the problems in the Dallas paper. 

Even the holy New York Times is becoming increasingly worried about threats to its news hegemony as other news forms have opened alternative gates, mainly blogs of all stripes, offering different viewpoints which consumers find increasingly attractive.  Now the legacy media are targets for critics, an uncomfortable and strange situation for the once mighty Times, which can dish it out but can't take it.

Rather than celebrate the diversity of the news industry, they complain.   A natural initial reaction, to be sure, but not one that will extend or even retain their power.  
 
As my esteemed editor Thomas Lifson has written on this site, the newspaper business is a declining industry, heading for crisis.

Ethel C. Fenig   10 29 04