Newspaper readership was declining before the WWW - and didn't decline any faster after it
"First, the study found circulation of print newspapers has been declining since 1990. There was no difference in circulation changes between the two periods 1990 to 1994 and 1995 to 2000. The later period was marked by the popularity of internet newspapers."Sounds like the internet has been a scapegoat for a decline in readership which predates the World Wide Web...
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Paul Bradshaw lectures on the Journalism degree at UCE Birmingham media department. He writes a number of blogs including the Online Journalism Blog, Interactive PR and Web and New Media