Economist.com — “Pick almost any American newspaper company and you can tell a similar story. The ABC reported that for the 530 biggest dailies, average circulation in the past six months was 3.6% lower than in the same period a year earlier; for Sunday papers, it was 4.6% lower. Ad revenues are plunging across the board…”
Fact: many technologists were quick to predict the death of pen and paper with the rise of typewriters and personal computers. Similarly, many technologists predicted book sales would decrease with the rise of e-book readers.
That being said, older technology can often persist in light of new technology through adaptation (i.e. new technology does not always obviate older technology). I believe the same is true for newspapers and magazines, provided they accentuate their remaining value (portable text, reputation, local community, and/or more non-ephemeral reporting like features).