For the other real media geeks out there, Derek Thompson writing in The Atlantic provides some meat and potatoes about the decline of print advertising. Here's the graph:
This shows that in terms of revenue, print advertising has fallen back to its level in the 1950s. This is obviously a huge change, but Thomson notes that it's still a $20-billion business and nothing to sneeze at. The problem for newspapers isn't a lack of revenue per se, but rather their business models, which continue to rely on vanished revenue streams, and adapting to the changed conditions.
It's obvious that the trend line over the past decade promises further decline, but at some point it will level off. (Note that since the recession, the decline has relaxed somewhat.) Publishers who are able to project that successfully and adapt their business models will survive, the rest will go under quickly.