As many have already said, AP and Reuters provide the source of the news, and far far to many 'newspapers' just republish it.
People like content, which Murdoch seems to forget about his own site, WSJ was good and people pay for it because it was more than just AP reprints, it was decent articles...similar to the BBC they tend to start with a summary and then add value by adding more detail.
It's like the difference between Engadget and AnandTech, Engadget will tell you Intel have launched i7 and some bullet points. Anandtech will have a 10 page analysis. I read both, but would only ever consider paying for Anandtech, knowing that I could get the same info as the Engadget from hundreds of other sites.
Newspapers need to reposition themselves, either go back to geographical seperation, or hirer proper journalists that can write proper stories, there will be less news per paper, but should better information, that I can't get elsewhere.