Here is the main problem I see for newspapers who want to charge for subscriptions. Almost everyone who gets their news online does not get it from a newspaper. They usually either search for something on Google, or start at a headlines hub like Yahoo or MSN. These usually link you to their own content or to news outlets like Reuters and CNN. The only thing an online newspaper is good for then is local news, which I don't care for all that much personally. The way I figure it is, if it is important enough I will hear about it from somebody or it will show up on the national news. Most of the local articles that show up in local news papers are local, and they are usually scraping for articles. So you get things like this article from the Las Cruces Sun News:
Pet cemetery spring cleanup
Nancy Leu, of Las Cruces, works on some weeds at Alicia Melgaard Memorial Pet Cemetery on Saturday as volunteers participate in the spring clean up at the cemetery. This is the first time Leu has helped at the cemetery. The cleanup will continue today.
Yep, that's the full article. I would be upset if I had to pay half a cent for that honestly, which is what you'd essentially be doing paying for a web subscription of a newspaper. Now I know the Sun News is no New York Times, but there is nothing in the New York Times that I want to pay for that I can't get for free.