Fewer people are subscribing to U.S. newspapers, but in Utah circulation is up, according to a new report by the Newspaper Association of America.

Weekday circulation at 745 U.S. daily newspapers fell 2.1 percent in the six months ended March 31 compared to the same six-month period a year ago, the report said. Sunday newspapers saw circulation decline 3.1 percent for the six months ended in March.

In Utah, the (Provo) Daily Herald showed the biggest weekday circulation gains by percentage among the state's daily newspapers. For the six months ended March 31, the paper's average weekday circulation was 32,520, a 2.3 percent increase from 31,780 during the same six-month period a year ago.

The Standard-Examiner in Ogden saw its weekday circulation grow to 60,956 for the most recent period, a 2 percent increase from 59,761. The Spectrum in St. George had its circulation climb 1.5 percent to 23,951, up from 23,604 a year ago.

Utah's two biggest daily newspapers also showed gains.

In the six months ended March 31, the Deseret Morning News saw its weekday circulation increase to 75,026, up 1.3 percent from 74,065 during the same period a year ago. Sunday circulation at the News rose to 77,487, up 1.4 percent from 76,407.

Weekday circulation at The Salt Lake Tribune rose a fraction of a percentage point to 128,186, up from 127,794. Sunday circulation at the Tribune was flat at 149,320 versus 149,281 a year ago.

"You guys are bucking the trends," said Neal Lulofs, vice president of corporate communications at the Audit Bureau of Circulations, which tracks newspaper circulation for NAA.

Despite the drop in national circulation numbers, John Kimball, senior vice president and chief marketing officer for NAA, said he remains optimistic about the industry's future.

"This is still a hell of a profitable business," Kimball said. "It's not like newspapers are losing money. While the profit margins are not as high as they were three to five years ago, they are still extremely enviable compared to most businesses."

Kimball said that while circulation numbers are declining, readership of niche products — which include free-distribution tabloids targeting entertainment, real estate or ethnic groups — is on the rise.

"The challenge for newspapers is being able to monetize those audiences," Kimball said. "And that's really what Wall Street seems to be looking for from the newspaper community."

Kimball added that revenue from newspaper Web sites is growing on average about 25 percent to 30 percent a year. However, Web revenue represents only about 5 percent to 7 percent of a typical newspaper's total revenue.

USA Today remained the largest daily newspaper in the country, with circulation of 2,278,022, up 0.2 percent from last year. The Wall Street Journal was No. 2 at 2,062,312, up 0.6 percent.

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