The new model is already defined. It's a two tier system. The lower level is free, and gives you access to 75% of the stories written in the past week. The upper tier is subscription based with a yearly fee between $10 and $100, gives you access to 100% of the articles written, and (hopefully) includes full access to the archives.

espn.go.com (sports journalism) has already implemented this - I pay them $15 a year for full access. The special features include blogs (a few of which I read because they are article aggregators linking to the rest of the sports media world), fantasy football stats / updates, and feature-length articles.

This should work especially well for local papers where there isn't much competition.

But they've also got to invest in quality, influence and impact. They need to invest in journalism that makes a difference in people's lives. That's a moral and leadership challenge - and a business opportunity for whoever can meet it."

This is the money quote. They don't have guaranteed eyeballs anymore - they're competing with small companies like dailykos who run with minimal overhead. On their side is the fact that the blogging world doesn't do journalism.

you are the media you consume.