Find out how the subscription service would work when you read more.
Apple would offer newspaper subscriptions in the iTunes App store, much like a "season pass" for TV shows, then take a cut from each monthly subscription. Print media would benefit from getting their content online, while new and more interactive ads could sell for an even higher price.
Digital newspapers have been a long time coming, and honestly I'd rather spend my money on the digital variety than waste paper and ink. What about you?