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Facing increased competition from cable and new forms of entertainment on the Internet, the broadcast networks have seen their hold on the American psyche slipping. This trend continued in 2007, when after a fairly promising upfront early in the year, the networks failed to produce the hits they needed to re-establish themselves. As of December, the networks’ prime-time ratings in the key 18- to 49-year-old age category were all down: at NBC by 11%, at CBS by 10% and at ABC by 5%.

Newspapers also struggled mightily in 2007, in ways that hinted at underlying problems in the business. The New York Times canceled its Times Select online tool because not enough viewers were willing to pay for content.