There are some good regional examples that show people will still pay enough for rigorous, old-school, fact-checked journalism to make it sustainable.
Minneapolis Star Tribune: ~200 newsroom staff, roughly $220M annual revenue, solidly profitable, seven Pulitzers.
Seattle Times: ~600 employees (not sure how many in the newsroom), marginally profitable after paying legacy pension obligations, nine Pulitzers.
Guardian US: ~110 editorial staff in the US, no subscribers but ~270,000 recurring and ~170,000 annual one-time donations, one Pulitzer but maybe that one should be shared with Snowden.
404media: tiny, 5 people, but solid investigative journalism with national distribution that makes a profit from subscriptions.