The cat's out of the bag. No one I know my age reads newspapers that aren't already available for free, and no one will pay subscriptions to re-read press releases with 0 research done by the "author" at the newspaper.
The only way is to break down the massive infrastructures and decentralize. A news agency which provides free, in-depth coverage online can easily gain the market share where it's currently divided 1,000 different ways. Decentralized semi-professionals working from a home computer, spread around the various cities of the US all feeding news to a small office of a half-dozen editors is the only way I see it working.
It must be fast-acting, efficient, and low cost. Unfortunately the days where Newspaper was the most respected news source disappeared back when the news was a 5min segment on the 5-Cent movies. Now they get it effectively on demand and for free, why spend the $1.25 to shift through 9 pages of coupons and irrelevant adds?
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"Smite the rocks with the rod of knowledge, and fountains of unstinted wealth will gush forth." - Ashbel Smith as he laid the first cornerstone of the University of Texas
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