Anyone that thinks that newspapers in India are going to go away the US route is just smoking something. Not for the near (10-15 year) future. In fact their readership and revenues will go up not down.
1. Literacy is going up – WHERE? in the rural NOT as much in the urban areas. Urban areas have always been more “literate”. What’s the least expensive and most accessible medium for the rural poor – Newspapers. Then radio followed by television and finally Internet. Only the Urban few are using the Internet for their news and that’s also the small minority. Most young Indians BTW prefer to sit down with a cup of coffee/tea in the morning and read the newspaper before they do anything else – its like a ritual. The ones that dont have time, read the news paper during their commute or listen to radio.
2. Growth of PC’s and broadband in India is still abysmal. I dont see anything changing this dramatically in the near future. Granted its faster than most other places, but its not big enough to make that dramatic a difference.
3. Mobile growth is happening in the rural areas also. And its happening in the Rs. 350 voice plans NOT in accessing the Internet plans. So it will be a few years (15+) before Indians start to read on the mobile given they have to pay download charges for data on the mobile.