Some of the most sage financial examination of the news business comes from Alan Mutter at Reflections of a Newsosaur, and his latest post skewers the assertion that it's in anyone's interest to stop the presses and go digital only.
A few ago I engaged in a lot of debate about the Los Angeles Times' announcing that its digital sales now covered the cost of the editorial payroll. Some saw that as a turning point and suggested the Times go digital entirely to save newsprint, distribution and other costs associated the print edition.
I didn't agree then, don't agree now, and thankfully Mutter has put some financials to the argument to support those who point to the calamity that would ensue in pulling out of a newspaper business prematurely --- lost revenue, some extra expense, among other things. Mutter says the cuts at the Times, and anywhere else this would be tried, would be catastrophic in the quality of the coverage --- with no real likelihood of substantially high revenue to build the franchise digitally. In other words, the worst of all worlds.