Facts are not copyrightable, so the meat of a story spreads quickly and with very little money changing hands. One subscriber to the Los Angeles Times can legally and immediately share the factual essence of an article via social media, personal web site, email, or anything else. From there it can be reshared indefinitely. Only people who really want to read the original reporting in full will pay to subscribe to the LA Times.

There used to be regional/temporal barriers in place before the Web was popular; newspapers had geographically limited distribution and it took time to print a new edition. One newspaper "scooping" another by one day was all it took to get people to buy the one-day-earlier publication. Also, 20th century newspapers collected significant revenue from classified advertising, people buying the paper just to get a weather forecast, and other kinds of information distribution that really didn't have anything to do with investigative news. The Web unbundled all that (weather.gov, Craigslist, etc.) and the only remaining strength of newspapers was producing original reporting. Which, unfortunately, was never all that profitable on its own even before you get to the "facts are not copyrightable" issue that I mentioned in my first paragraph.