News is still a big business; it's just the printing of it on papare that's dying. Here's another example: The Seattle Post-Intelligencer is about to go internet only (I seriously doubt they'll find a buyer willing to keep printing it):

Hearst Corp. put Seattle's oldest newspaper, the Seattle Post-Intelligencer, up for sale Friday, saying that if it can't find a buyer in the next 60 days, the paper will close or continue to exist only on the Internet.

Had local papers taken Craigslist seriously, and built up their own online classifieds, this transition might have gone more smoothly.