I just stopped reading the local news because most of it is rubbish. They're still running around with their huge Rob Ford boner. I just went elsewhere to find my information.
The problem with the media industry today is their steadfast resistance to change. It stems from all the media consolidation back in the 90s, when all the independents were bought up. The big boys had little reason to innovate to compete, since they now owned all the competition. Then the web came along and started gobbling up the advertising dollars. However, the big media outlets never really figured out how to properly monetize it.
The paywalls are just trying to plug a leaky dam with a piece of gum. It might hold it off, but the day of reckoning is going to come sooner or later. However, people aren't going to pay for content that they previously got for free. Not unless it's significantly better. Especially since we've spent two decades at the all you can eat web buffet. Now they've got sites like Twitter, where news is instant, or Huffington Post. They just don't know how to respond to actual competition.
I work for a traditional cablecaster who actually is making money strictly off advertising. We've expanded our web reach dramatically, and it's paying off with decent growth. We're one of the most influential brands in the country as well, ahead of all the big boys. So it can be done if you bother investing in the right places rather than using stop gap measures.
In the end, it's the content that matters. The same old crap doesn't fly anymore.