Even people who are glued to devices still pick up dead tree editions of our local free papers. You can find out things there that you wouldn't otherwise know--like the fact that the local bowling alley is going to be replaced with a condo.
They're online too, and they're advertiser supported in both cases. What does Buffet think is unsustainable about this? Advertiser supported media isn't going anywhere. Local advertiser supported media with "stringer" reporters are alive and well. I don't look at it much, but there's been a lot of buzz about Patch.com lately. Even if that particular site doesn't survive, I don't see free advertiser supported, or even volunteer (community supported via donations) news going away.
That's right Mr. Buffet, people can just volunteer to throw up a server. Retirees, students, anybody with time on their hands. You know, like college radio or PBS?
Maybe what he means is that you aren't going to make big money with free news. Yeah, that might not be sustainable; but local free news ain't going away, and when you aggregate it from Indonesia to Iowa, you've got world news for next to nothing, with more reporters than the old model could ever dream of hiring, and probably with better objectivity.