Internet the only salvation for newspapers?

Fascinating piece in the Economist today, looks at the growing financial crisis in the newspaper industry. It notes that the Daily Telegraph and FT.com have been breaking even since 2002, and the Guardian is on the brink of acheivng that. But, with falling advertising revenues, it reckons that their sites need to be making enough to help subsidise their paper versions. He notes that the subscription model (chosen by the Irish Times, Irish News, and the Andersonstown News) doesn’t work in such a wide and free market as the Internet. And they’ve all a long way to catch up with the BBC – who have their once (widely internally disliked) leader John Birt to thank for its lead in Internet news!