Not very surprising: the ongoing economic disaster is forcing people to give up non-essentials, and that apparently includes newspapers for many of them.
The article offers stats for several specific papers, but here is the aggregate:
According to ABC, for 395 newspapers reporting this spring, daily circulation fell 7% to 34,439,713 copies, compared with the same March period in 2008. On Sunday, for 557 newspapers, circulation was down 5.3% to 42,082,707. These averages do not include 84 newspapers with circulations below 50,000 due to a change in publishing frequency.