Jeff has a lot of really good advice for the news industry here.
And newspapers have to take an even more frightening step: They need to start driving readers from print to online. Yes, that means driving readers from a higher-margin product, print, to a lower-margin product, online — but those margins are artificially maintained because advertisers still value print more than readers do (why else is the print audience shrinking while online is growing?). When reality catches up to advertisers, and when buying ads online in a distributed world is made easier — and that will happen — will newspapers be ready? When that day does come, newspapers will even have to consider selling print as a value-added upgrade to online, the reverse of what is done today.