Is that because of loss of sales because people are less interested or are spending there time on other things? (eg facebook) or is it because escalating costs have outstripped circulation figures/advertising? ie it costing more, not generating less.
Lots of things I guess, and for sure people are using their time differently, eg reading Facebook instead of a newspaper and once consumer habits change it's hard to get them back. But I can't imagine The Guardian is losing too many sales to Facebook.
The problem for conventional printed media is not lack of interest, but lack of circulation sales. They've just fallen through the floor. In my area, I used to run Practical Photography magazine when it sold 120,000 a month, was the biggest selling photo mag in Europe, and made a tidy sum. It now sells less than a quarter of that, and falling, losing sales to the internet and websites like this!
All printed media is the same, and the 'free' internet cannot replace it. But there is a real consumer demand and need, a definite will to supply quality content - it just costs money. Not much money actually, as I said above most of the cost of printed media goes in printing, paper, distribution and waste (about 25% of all printed media is unsold and gets pulped). The web changes all that totally, and at the same time expands revenue opportunities with the ability to do other things that print can only dream of. It's an infinitely better medium.
Its going to take a standardised format for micro payments to make it happen.
Before that happens, several different types will come along, one will ultimately prove dominant and destroy/absorb the rest - along the lines of Mastercard/Visa/Amex.
Big ask though, probably 10-20 years and news publishing will be dead long before then.
Sure, we're some way from a universal micropayments system. But my point is that the technology exists, the consumer demand exists, as does the ability and will to supply from media providers. It will happen some time in the next several years, and when it does I suspect it will accellerate rapdily. But it will happen for sure.
I think you and I are talking about slightly different things though, two halves of the same coin. I'm not looking at news specifically, but the changing shape of a new media landscape. The immediate problem for news reporting, as I see it, is the consumer demand for video clips rather than stills. It's a damn shame IMHO, but there it is and obviously, video doesn't look too good in a newspaper.