Free newspapers are not weathering the economic crisis any better than their paid-for counterparts. Last year, global circulation was at 40 million, and in Europe alone circulation has fallen more than 10 percent this year, The New York Times reported.

Several dailies have also recently stopped publishing, including Spain's oldest free daily Mini Diario. The problems facing free dailies are the same that threaten paid newspapers; however, the economic downturn, which has led to advertising losses, is affecting free papers to a greater extent, as advertising is their sole source of revenue.

In light of decreasing ad revenue, many publishers of free papers are restructuring their businesses. Metro International has plans to sell some of its U.S. titles along with its editions in Italy and Portugal.

Another factor affecting free dailies is an influx of freesheets in the market, such as in Spain, where a surplus of free papers put an end to the boom, according to The Times. Anders Kronberg, chief financial officer of Metro International, commented on the overbundance of free dailies' affect on the market saying, "when competition arrives, it's very important to stay No. 1 or 2...if you're not No. 1 or 2, get out."

The flooding of the market bodes poorly for free dailies, which target similar audiences: metro riding, young readers. As a result, publishers like Metro International are exploring new markets and launching papers in places like Russia, Latin America, and Asia, The Times reported.

However, the market downturn doesn't mean there's no hope for free dailies. Their audiences are coveted by advertisers who seek to reach the on-their-way-to-work demographic, presumed to have more disposable income. And as the market recovers, the ad-supported business models will regain strength as well, Sverre Munck, head of international operations at Oslo-based publisher Schibsted, told The Times.