Some 136 newspapers in the United States have closed in the past year, news deserts are expanding and web traffic to the nation's top newspapers has dropped markedly this decade, according to a report issued Monday that struggles to find hope for the beleaguered news industry.

While entrepreneurs are launching digital news sites, often backed by philanthropies, they haven't sprouted at a rate that makes up for the losses, the report from Northwestern University said.

Taking a step back for an even broader look at the industry is even more troubling. Since 2005, the numbers of newspapers published in the United States has dropped from 7,325 in 2005 to 4,490 now, said the Medill State of Local News report. Daily newspaper circulation that averaged between 50 and 60 million people at the tu

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