The business model is journalism was advertising and it translated fine to the web. The problem is, it turned out that advertising didn't need journalism. Google ate the newspapers' lunch.
It was relevant, timely, legitimate geographically targeted advertising for most newspapers. The subscriptions fed the advertising, which fed the subscriptions, but subscription revenue was usually a tenth what advertising revenue was. Information for subscribers was collectively subsidized by businesses because they were in competition with each other and subscribers weren't.
Newspapers didn't understand that their own business model wasn't two separate modes of "journalism" and "advertising" until it was too late. They were always in the relevant information (both news and advertising) business, so Google SUPER ate their lunch. Many news organizations died and some limp along not knowing this, but the industry as a whole was fat and complacent. There was a lot of money in newspapers, especially before it was legal to own multiple news sources. Local newspapers being able to fly reporters to major national events type of money (in private jets for the larger ones).
I spent a few years at one of the larger surviving independent statewide papers in the US as part of a team specifically hired to "fix" the subscriber and advertiser losses. They told us the scope was business-wide, but in reality all leadership wanted was someone to tell them that they're smart, special people who just need to use manipulative tactics harder. Nonprofit and community focused papers are springing up, and doing well, but some old timers are holding out for something around the corner that will magically return them to 1000%+ profit margins instead of learning how to be a normal business since they missed their chance to be Google.
The business model was dual revenue streams: subscription (or a la carte day-by-day or month-by-month) + ad revenue, with a few exceptions like broadcast TV (where the coverage tended to be more shallow and lowest-common-denominator compared to the early days of cable TV news).
The online advertising merchants realized they could "curate" and "summarize" the articles, resulting in far fewer ad impressions than if someone had to find things purely through the publication newspaper, and bring the ads forward to their portal instead of solely on the content itself.
AND they capitalized on an early reluctance to charge for things online to push the "ew, who wants to pay" mindset globally.
