I'm not sure this has much to do with the current economic situation. The Newspaper industry has been struggling for years, and much longer than our current economic woes. They don't help, of course, but in reality news has never been more available for free and it's proved difficult for the industry to respond to that, although the first
paywall was introduced in 1997. The Times charges for online access, and that may spread; many charge for iPad access already, and the big news media are watching the Times' model to see how it fares.
In the USA they've been studying, closely, the effectiveness of online subscription models and it seems that for the bigger companies, anyway, a
mixed print and digital offering may be a way forward, with moderate to significant growth being seen for businesses that are trying it.
The biggest problem appears to be online advertising. Once viewed as the holy grail of a 'free' internet the online market seems to have become saturated, possibly because so many companies have been using its revenue as a business model. More worryingly, however, it's estimated that 90% of the
advertising revenue in print is in the hands of the nationals, which leaves comparatively little for the regional media. Both the Sun and the Telegraph plan to introduce hard paywalls for their online content but even the Times - one of the earlier adopters - has failed to prove conclusively the case for charging. Regional newspapers, such as the NWWN, are in an even more parlous state. Their circulation has been falling for years, as has that of the Daily Post, but I think it will be a shame if they both go under.
I don't think there are any quick fixes, either, otherwise they'd probably have been tried, although the possibility of forming charitable trusts to run them in similar ways to the Guardian and Observer might be viable. But any charity would have to be able to find the funds to buy them in the first instance.