It's probably more due to a decrease in the average size of the paper, which would be due (mostly) to a decrease in advertising. Since newspapers make most of their income from advertising, this is good news indeed.
Yes, right after I posted I thought the same. Fewer ads, less newsprint needed. But declining circulation, too, I think. They have expanded into all the easier markets, using electronic transmission and local printing plants, and Pinch's current and future expansion plans are pretty desperate.