Do you think online revenues from newspaper company sites will one day match the revenue of the print editions?
It seems to me that The New York Times still has a lot of eyeballs looking at their content, they just don't have the ability (right now) to monetize their online version as well as they monetize their print edition.
If newspaper companies could ever figure out how to monetize their online versions (and this might just be a matter of waiting for online ad rates and spending to climb) then the newspaper comnpanies could be profitable in major ways.
I just don't know how long (or if ever) it will take for the online version of newspapers to make a significant amount of money.
I agree that the internet advertising will increase over time, but I still wouldn't invest in the established newspaper companies. I think they will continue to have too much overhead costs related to their former business model that will drag them down for years.
If I wanted to take advantage fo the increase in online advertising, I would invest in new internet start-ups that are used to operating in a low cost environment with a huge upside.
I think it is interesting what Examiner.com is doing. They are trying to be an online newspaper company without the usual overhead of a newspaper company. They use the name Examiner.com to start local sites in each city and then they recruit local writers to genrate the articles with a revenue share of the ad revenue. Kinda like Squidoo, but with a newspaper angle.