The report's first few sentences tell most of the story:

Not a pleasant picture if you are in the journalism biz. Not even a pleasant picture if you like to read newspapers—one of the two newspapers that I get delivered to my house is on the list of the 10 papers most likely to fold in the next few years.

The report makes for very interesting, if a bit depressing, reading. There are a number of observations that portend a fundamental restructuring of the way that Americans, and likely folks in other countries, get their news. The three most important observations to me are that power is shifting from institutions (like newspapers) to individual journalists; that people increasingly want news "on demand" rather than scheduled, like the evening news; and that there has been a raise in importance of "minute-by-minute judgment in political journalism." These trends greatly benefit the Internet and Internet-based journalists. The latter two trends also benefit the full-time cable news channels, but only when the cable is available. And, in the office, cable is not generally available.

So far, most newspapers have had a hard time figuring out how to move to the Internet. Overall, the report says, online ad revenue for newspapers fell slightly in 2008 and represents less than 10 percent of newspaper revenue. Search engines, such as Google, are doing fine—they are getting much of the growth in ad revenue (up almost 15 percent in the first three quarters of 2008). The local sites, like newspaper websites, are seeing a bleak outlook.

The report also notes it is unlikely that the news business of the future will be able to support the current worldwide news gathering with revenue from banner ads.