The following is the unedited text by Jocelyn Newmarch, published on the website of the privately-owned South African daily Business Day on 14 November and republished by the BBC Monitoring Group.

The latest circulation figures for newspapers and magazines provide further evidence of the tough times being experienced by the sector.

Almost 70 per cent of daily newspapers have seen circulation dropping since last year, according to the third-quarter figures from the Audit Bureau of Circulations (ABC).

Although the global media industry is in turmoil, consumers continue to support specific titles, the data show.

The only categories to show growth were community newspapers, free newspapers and custom magazines, all of which are distributed free or at nominal cost to consumers. However, community newspapers grew as a result of additional new titles, rather than growing existing ones.

The data come as no surprise to industry analysts.

"The vast majority of magazines and newspapers are aimed at the middle market - and these are the guys feeling the pinch of the credit crunch. Magazines and newspapers are very often luxury items. When times are tough, the luxury items are the first to go," said Chris Botha, a director of the Media Shop.

"The declining circulations will continue to put massive pressure on print media owners as this is very often the currency they use to determine rate setting."

Botha said print media owners would have to contend with massively increased costs, as paper is purchased in euros and dollars. "On the other hand, they don’t have too much ammunition with which to hike their rates."

Consumers are opting to watch TV and read retailers’ magazines. The custom magazine category is now larger than the entire consumer magazine category in terms of circulation.

It grew 17 per cent overall with real growth of 7 percent. TV guides in particular are driving growth.

Despite the poor performance of weekly and daily newspapers, Gordon Patterson, vice-president of the ABC, said specific titles still delivered significant growth, which, he said, was evidence of continued consumer vitality and support.

But the fourth quarter, which traditionally provides a lift in circulation, will be crucial for the industry.

Daily newspapers performed worse than expected in the third quarter, dipping 2 per cent below figures reported for the same period last year.

Business Day has not escaped the downturn, with sales dipping to 40,370 copies, from 41,357 copies for the same period last year. Weekly newspapers have seen circulation dropping 9 per cent, although this is partly due to the change in frequency of a key title.

Weekend newspapers have maintained circulation from the second quarter but have improved since last year.

Business Day’s sister newspaper, The Weekender, gained 15 per cent since last year, the biggest gain in percentage terms. The title now sells 12,788 copies each week.

Community newspapers’ circulation grew 9 per cent, but this was largely a result of new titles, with real growth proving static. Free newspapers saw circulation rising 10 per cent.

On the magazine front, consumer titles are bearing the brunt of spiraling input costs and tightening consumer spending, said Patterson.

This category has declined for two quarters in a row and category circulation has dipped below last year’s levels, with a 4 per cent real decline.

But there is evidence of strong consumer activity, with continued support for several growing titles and "immediate and significant" circulation growth for others.

Family interest magazines bucked the trend to show a healthy 5 per cent circulation growth.

"The industry as a whole continues to show responsiveness to innovation. This is healthy," said Patterson.

He said the industry should expect more focus on circulation composition as advertisers wanted value rather than the illusion of impact.

Further pressure on advertising revenue is expected next year. Patterson said the SABC, one of the biggest media owners, had slashed next year’s rates by up to 40 per cent for some of its most popular shows.