A note on their profitability over the last five years. It depends a lot on the size of the newspaper, etc. but their still as a class making money, even if some of them have been losing more money recently. Though, even that's not the case.
I think the news industry is one of those areas of the economy where the "free" content makes it more likely people won't pay for the information. Some would argue it's other things, but I imagine it's more likely it's the "free" information out there. But, at some point I would bet we'll have to find a balance between free and paid for information. Like the music and movie industries. It's hard to imagine people, at least people that we would trust enough, doing the tough leg work to find a story, etc. Right now bloggers etc. that are free content tend to piggy back on some one's paid work. But, who knows?