This is not the old west. Evolve or die, Murdoch. Trade hoarding content for controlling the dissemination in an engaging way that uses the free exchange of the web to add value to the content.
Would Murdoch have outlets limit their content to those people with sufficient disposable income to pay each individual news company a subscription or a la carte fee for articles?
IMHO, Pay walls are not the answer. Pay walls are an Old Media way of trying to solve a New Media problem. How do you monetize content without alienating your audience?
My suggestion is to create a community. Integrate social networking and user discussion tightly into the interface of the news site you're trying to save. Give me a reason to go there and, instead of merely reading the news, really have an experience unique to your site.
That is one reasonable, if less than expert, example of how New Media might answer the problem with which Murdoch is confronted. I'm sure there are instances of sites already doing things like that, but I just can't think of any now because I'm a busy bee. If you know any, let me know in the comments!
Murdoch is the face of the sun that is setting on Old Media.