Tribune owned Newsday is evidently offering reduced ad rates and a guaranteed circulation minimum (“rate base”). Any business/organization that is not evaluating/changing ad spending is operating at a competitive disadvantage.
Kevin Delaney writes that new media is increasingly challenging “old media” for effective ad dollars:

When executives at DaimlerChrysler AG’s Jeep division wanted to promote an extra-rugged version of their Wrangler brand last year, they commissioned a videogame that allowed players to drive a Wrangler Rubicon up steep inclines and across rivers. The game — “Jeep 4×4: Trail Of Life” — was relatively inexpensive to produce and the company gave it away online.
Within six months, 250,000 consumers had downloaded it and handed over their names and e-mail addresses to Jeep. Nearly 40% of them said they were considering buying one of its vehicles.

Another bit of evidence that things are indeed changing. I’ve subscribed to the New York Times fishwrap version since my days at the UW in the early 1980’s. This week, I cancelled my print subscription (I no longer subscribe to any print newspapers). I’ve found that the internet is far more useful and interesting from an international, national and increasingly local perspective.