It's too easy to watch TV news instead of reading a paper then. It's not a stupid question. People call in with news tips. And reporters cultivate sources who will tell them about what's going on. Some companies issue news releases.
Some news comes from routine meetings.
It's not as hectic or exciting as in the movies. Thanks to computers, newsrooms are quiet operations these days. It costs more to distribute copies there than the revenue that is produced. There are some locations where newspapers are distributed, but past experience has told us we don't sell enough papers there to justify the cost of sending more up there. I have a friend who is considering majoring in journalism.