As I mentioned in an earlier post, the Murdoch model (based on Hearst’s model) was basically to lose money on the newspaper and make it up in other businesses (although Hearst actually made money eventually). What was most important to these megalomaniacs was the power that newspapers brought them.
Kaplan & The Washington Post
There have been several mentions recently that the Washington Post is a good model for newspapers of the future because they have diversified their businesses and can, essentially, run The Washington Post on the profits of their education division:
“The Post’s education business, anchored by the Kaplan for-profit college and test-prep businesses, contributed 58% of 2009’s revenue and all of its $195 million of operating income.” Barron’s.