eMarketer is dim on the outlook for U.S. newspaper publishers. "Their business model is broken and advertisers are bailing," AdWeek reported.

Newspaper ad sales would plummet 16.4 percent to $37.9 billion in 2008, and will fall to $28.4 billion by 2012. Its revenue decline is more quickly than in any other major medium's.

Classifieds are down due to craigslist and its brethren, AdWeek reported.

eMarketer added that newspaper circulation keeps dropping as readers are migrating to the Web. The relatively high fixed costs, including paper, printing and distribution are also burdens.

"The financial pressure on newspapers is enormous," said eMarketer. "To attract both readers and advertisers, they have invested in beefing up their Web sites. But even online ad revenue -- which offered a glimmer of hope -- has begun to slow," AdWeek reported.