So what I would do would be to build a platform for local news agencies of the future.
Define all the local news sources out there: Police Info, Fire Dept. Info, Local Events, etc… Then provide software (web based I would assume) that would allow a business of a few people to set up shop in a small town (or more likely cluster of towns) and deliver the local news. They would have to make the actual deals with the Police depts., Fire Depts, Local Convention Centers, et al. to provide the info but you could make a thriving business just by selling them pre-made software that makes collecting that info easy.
Distributing that news is another area. Again, the paper part probably isn't going to live on. But local agencies could easily make their money off of websites if those web sites were done well. I personally would bundle distribution with the content collection software but you could probably make some money just off software that would create a professional website. Say that supports syndication and is viewable on mobile phones (keep in mind most small businesses are still paying thousands to con men to design static web sites). Allow for alternate distribution like sms alerts and you could have an even more viable product.
You'll have to pardon the long reply but the point I'm making is one that Microsoft made years ago which is the real money in technology is made by those who create software that empowers others.