IBIS World forecast that newspaper revenue would drop from $6.7 billion to $6.4 billion, making it the country's fourth-worst industry.

The report said newspapers would attract less than 30% of the total advertising spend in 2013, down from a 41.8% share in 2000. Advertising accounts for 75% of newspapers' revenue, it added.

IBIS World general manager Karen Dobie said newspaper circulations were falling due to the rise of new media, competition from consumer magazines and time constraints.

"In the coming years, environmental concerns are also expected to affect demand for printed newspapers," she added.

The only industries tipped to do worse than newspapers are gaming and vending machine manufacturing (-6.4%), wired telecommunications carriers (-5.5%) and mineral exploration (-5.1%).

IBIS World forecast in July that pulp, paper and paperboard manufacturing would experience a 5.2% fall in revenue in 2012-13.

[LinkedIn: Was Murdoch right to say newspapers are dying?]

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