Actually,I know a few newspaper publishers, primarily in small towns, that publish weeklies. The print cost almost always exceeds the cost of the paper. For example, to print a 8 page broadsheet, 1,000 copies (the minimum a printer will do) the cost is $500. If you have 750 subscribers you divide by $500 to get your cost per paper. Add postage (about 17 or 18 cents on average). The average price is 50 cents at the counter or about 15 cents less than the printing costs among the publishers I know. There's some push back from readers when you exceed 50 cents a copy. Given greater readership means greater ad revenue and a greater percentage of papers sold compared to the cost for the minimum 1,000 press run, it's pretty much the best option. If you think wages are bad in radio, look to print. Most folks are being forced to part-time.
A real example: a community of 3,300 with business sales of $11 million (only those businesses that typically buy advertising) did $28,200 gross in 2015. Of that subscriptions were $8,100. Advertising was $20,200. Average 12 of 72 businesses advertises per issue. Printing costs were $12,500. Postage was about $4,000. Operational costs were about $12,700. Publisher worked for free (reimbursed mileage) and sustained a loss of $1,000 for the year. The prior year the paper had a high school kid making minimum wage working 8 hours a week. They did $32,000 during that year.
Online is killing newspapers. National chain stores are killing newspapers by diminishing the core advertising base local business by reducing sales and profits for mom and pop businesses. National chain stores generally do not place any advertising for single location markets and at best might do an insert. This rate and normally around 15 cents per insert times number of subscribers in county. As a general rule the cost has to be lower than direct mail. Advertisers or shoppers are killing newspapers with the lure of lower cost column inch rates and mailing to every household in a county for example. Many mom and pop businesses don't get the readership of the mailed shopper is minimal and the single location business is spending to reach so many people outside their trade area, it is generally a waste of money. In reality the typical business is clueless about effective and targeted advertising and is easily lured toward bad decisions. For most businesses, especially single location, it is the walk in customer that is their cake and anything else is simply the icing.