So you thought you knew how bad things are for the paperbased News business?
This graph illustrates the fundamental crisis in the News business. I think it calls for a new model for news, that can take into account three things:
1) The sharing among people of Internet news. (Like in this post)
2) The need for a new pay/revenue model
3) The need to deal with the fact that reporting has changed. We all read news sites in other parts of the world. Ordinary people with smartphones are beating the reporters on times, place and accesss to people.
In my view you need to start from news consumer's situation, that is where, when and how news is consumed, both to get ideas for the editorial work and the way to get revenues.