April 28 (Bloomberg) -- U.S. newspapers reported that circulation losses accelerated in the six months through March as more readers turned to the Internet and publishers cut promotions to lower expenses.

The New York Times and Los Angeles Times reported declines of 3.9 percent and 5.1 percent, as paid weekday circulation among 530 newspapers dropped 3.6 percent, the Audit Bureau of Circulations said. Average weekday print circulation at U.S. newspapers fell to 41.1 million from 42.6 million a year earlier, ABC spokesman Neal Lulofs said today.

``That decline is certainly worse than in the past few years,'' said Rick Edmonds, media business analyst at the Poynter Institute, a non-profit school for journalists in St. Petersburg, Florida.

USA Today and the Wall Street Journal, the two biggest U.S. newspapers, were the only publications in the top 25 in which circulation didn't decrease. While newspaper readership has been declining for more than 20 years, national publications have retained subscribers by expanding their distribution and appealing to select audiences, Edmonds said.

Circulation at Gannett Co.'s USA Today, the largest newspaper, gained 0.3 percent to 2.28 million. News Corp.'s Wall Street Journal, the second-largest, increased its print and online readers 0.4 percent to 2.07 million.

Average weekday paid circulation at New York Times, the third-largest, fell to 1.08 million. New York Times has been eliminating discounts and advertiser-sponsored copies to cut costs and concentrate on more profitable circulation, spokeswoman Diane McNulty said in an interview.

Loyal Subscribers

``Those are our committed, loyal readers and, for us, that's the bottom line,'' McNulty said. About 800,000 of its paid subscribers have received the newspaper for more than two years, she said.

The Wall Street Journal, which became part of Rupert Murdoch's News Corp. in December, is increasing its political and international coverage to compete with New York Times.

Average paid weekday circulation at the Los Angeles Times fell to 773,884, while the Chicago Tribune declined 4.4 percent to 541,663. Both are owned by Tribune Co., which was taken private last year in a buyout led by billionaire Sam Zell.

Newsday, the Long Island, New York, newspaper that Tribune is selling, reported a 4.7 percent drop in weekday circulation to 379,613.

Metro Newspapers

Metropolitan newspapers have been hardest hit by the migration of readers to the Internet for news and information. Circulation at the Washington Post, the flagship newspaper of its namesake company, fell 3.6 percent to 673,180. Gannett's Arizona Republic reported a 4.7 percent decline to 413,332.

Average Sunday print circulation for the six months through March fell 4.6 percent, Lulofs said.

In the battle between New York's tabloids, the Daily News, owned by Boston Properties Inc. Chairman Mortimer Zuckerman, narrowly led News Corp.'s New York Post. The Daily News fell 2.1 percent to 703,137 and the Post dropped 3.1 percent to 702,488.

Average paid weekday circulation for the 25 largest U.S.
newspapers for the six months ended in March, with percentage
change from a year earlier.

1. USA Today, 2,284,219, up 0.3 percent
2. Wall Street Journal, 2,069,463, up 0.4 percent
3. New York Times, 1,077,256, down 3.9 percent
4. Los Angeles Times, 773,884, down 5.1 percent
5. New York Daily News, 703,137, down 2.1 percent
6. New York Post, 702,488, down 3.1 percent
7. Washington Post, 673,180, down 3.6 percent
8. Chicago Tribune, 541,663, down 4.4 percent
9. Houston Chronicle, 494,131, down 1.8 percent
10. Arizona Republic, 413,332, down 4.7 percent
11. Newsday, Long Island, 379,613, down 4.7 percent
12. San Francisco Chronicle, 370,345, down 4.2 percent
13. Dallas Morning News, 368,313, down 10.6 percent
14. Boston Globe, 350,605, down 8.3 percent
15. Newark Star-Ledger, 345,130, down 7.4 percent
16. Philadelphia Inquirer, 334,150, down 5.1 percent
17. Cleveland Plain Dealer, 330,280, down 4.2 percent
18. Atlanta Journal-Constitution, 326,907, down 8.5 percent
19. Minneapolis Star Tribune, 321,984, down 6.7 percent
20. St. Petersburg Times, Florida, 316,007, down 2.1 percent
21. Chicago Sun Times, 312,274, n.a.
22. Detroit Free Press, 308,944, down 6.5 percent
23. Portland Oregonian, 304,399, down 4.8 percent
24. San Diego Union-Tribune, 288,669, down 2.6 percent
25. Sacramento Bee, 268,755, down 3.7 percent

Source: Audit Bureau of Circulations

To contact the reporter on this story: Leon Lazaroff in New York at llazaroff@bloomberg.net.

Last Updated: April 28, 2008 14:03 EDT