It is a huge issue. Newspapers give everyone 90% off for a whole year in hopes of conversion (or customers forgetting to cancel), but they do not see this as an issue.
I don't think they'll do very well in the future if they refuse to change.
Another company that I know about who successfully sold/partnered with big news companies told me that it's almost impossible. The execs refuse to change and the only reason they got those partnerships were because of their advisors who were ex-media execs.
It's going to be an uphill battle, but I'm not writing it off just yet.