I have to say I strongly disagree. Subsidized press will just encourage more conflicts of interest in coverage of politics, will waste taxpayer money, and is unlikely to result in better journalism.
About newspapers losing money, I suspect the main reason for this, and the reason nobody mentions is that newspapers and media companies in general borrowed through the nose to buy out other papers to reduce competition. It is the interest payments for all that borrowing that is causing most problems in the top papers.
Otherwise a paper that gets large viewer ship online should not have any problems funding news gathering.
But nevertheless, it is disturbing to see this in the WSJ. That means it is seriously being pushed. I hope Obama does not support it, there will be no profit for him in it, the right wing papers will use this to once again call him a socialist while still pocketing their subsidy.