Newspapers don't have (large) online distribution channels, but google does. Newspapers have content and google has the online distribution channel that gets millions more people to view that content.
Additionally, just because google has a large online distribution channel doesn't give it the right to steal. There's something to be said about information proliferating to a mass audience, but in many cases, what Google News does is basically stealing!
To me the solution is so obvious - Google should allow Youtube API users to have some sort of custom adsense, that both google and Totlol can share, for example, that I don't understand why they don't implement it.