If you haven’t ready it yet, E&P published a story a couple of days ago on the revenue challenges facing newspaper companies. It’s a pretty thorough and accurate account of the current state of the industry.
Getting revenue up significantly enough to support newspaper-style news operations is and will be exceedingly difficult. I’ve run spreadsheets on this for a couple of different organizations now, and it’s very hard, with current and imaginable revenue streams to be both realistic and come even half way to generating sufficient revenue. The only way to do it is to grow traffic by huge amounts. That, of course, is where content comes in. We have no hope of replacing print revenue if we don’t get the content model right.