As we've demonstrated at ClariNet, people will pay for quality in what they read on the net. But the control of information by the media will be gone. It will be too easy for small media, and even ordinary people, to push hidden stories out to the world. More to the point, people will expect their big media to give them hypertext pointers to the small media, so that when they want to see the other side of a story, or read other viewpoints, they can. If the big media won't give that to them, they'll subscribe to people who just make pointers to both the big and small media.
News is a great application for the internet today, but actually it's also well suited to broadcast.
The result will actually be a hybrid, with popular material broadcast in digital form to be efficient, supplemented by pointers over the net to less popular material. There's bad news for both of them. Classified advertising in the network world is trivial to do, and it costs almost nothing. In fact, you can do basic classified advertising on the net for free right now, and while it's not organized, the cost of organizing it is nothing if you work it out per reader. Sure, classifieds will be a big thing, but a tiny portion of the big money pie they are today.