Figures released on April 28 by the Audit Bureau of Circulations show a 3.6% drop in U.S. newspaper circulation over a six-month period from October 2007 to March 2008, reports Reuters.

Reflecting the readers' move to online news, most of the top 25 American papers experienced circulation reduction, although Gannett Co. and the Wall Street Journal reported gains of less than one percent.

According to blogger Alan Mutter, the figure represents sales of around 50 million, the lowest level since 1949 when newspapers moved 50.9 million copies. The latest report also shows that Sunday papers, which have thus far been fairly resistant to circulation drops, were more affected than weekday papers, experiencing a decline of 4.5%.

Why the circulation fall? In addition to online migration, the lower figure is also partially the fault of newspapers, who have tried to cut costs by no longer shipping to far away locations.

Mutter also brings up PR-related issue: "Will the tailspin in circulation and ad sales be accelerated by the growing accumulation of bad press about the press?" It is a legitimate concern given the publication of doom and gloom stories like Advertising Age's latest cover story, "The Newspaper Death Watch."

Sources: Reuters, Reflections of a Newsosaur