Are newspapers in trouble?

Its good to lose touch occasionally; I have just had a week of holiday in Elba (a beautiful island and a great holiday). No contact with the web for a week, just a steady flow of emails to view on my Blackberry. So a very good holiday — and as I tune back into the flow of blogs and trends and technology opinions there seems to be plenty of grounds for gloom about newspapers:

But if newspapers are really in such trouble why are Google (and Yahoo and Microsoft) so interested? Even interested in the old print technology….

Once newspapers have the confidence to produce and sell subscriptions to digital editions they will begin to see how their businesses (service businesses for sure) can still be highly profitable on the web.