Wow, WM, that's a tough question!
While I realize a business plan without an expection of profit is doomed to failure, I'm not sure about a subscription to the on-line offering.
I believe the New York Times and the Washington Post require you to register with them in order to see their online content. This just involves some simple demographic data and of course your email addy. So far I have refused to provide that info and thus forego their online content. I do regularly read the online Sunpaper from Baltimore and regularly post to their forums. As of yet, they have chosen not to seek fees for their online content and do not require any type of "registration" to view their content. I read several other papers online across the country due to specific interests in that locality.
If those online news sources were to charge a fee for accessing their content, I probably would not subscribe. As to the Herald-Mail company charging for accessing their content I probably would not choose to contribute. As a card carrying home delivery member I feel I already pay for that privilege! However, charging for archive material, as the H-M does now do, is not a problem for me.
Seek your profits from advertisements. I personally do not mind closing pop up windows, or viewing banner ads in order to view your content. In fact, I have been known to click on a banner ad or pop-up or two if the product that's being advertised is of interest to me. Perhaps from time to time I've even purchased something advertised from someone's web site. But I draw the line at un-solicited email. I refuse to respond, or even open, anything that has been bulk mailed!
My personal business plan so far has been not to pay for on-line content. Several web sites I regularly review do have charges for their premium content. So far I have resisted paying for that content. But, I fear in the future I will be paying for that content, like it or not. The 'net has definitely become commercialized and can no longer be considered the intellectual property it once was (or as Al Gore designed it

).
My idea of a fair price for premium content, for a news site, would be perhaps in the neighborhood of between $12 and $20 YEARLY. For other sites it would depend of course how valuable I perceive that site to be TO ME.
I do pay for some premium content on the 'net. For instance I do pay for USENET access because my ISP's offerings are so meager. And there are other sites I am strongly considering paying a subscription fee to. But at this point in time, and since I already receive 7 days of the H-M at home, I would not pay for H-M's online content.
One Newspaper site I regularly read actually will provide Internet Service and a subscription to their print edition for a set monthly fee. (email or pm me if you want the site).
Hope this helps Webmaster. Sorry for being so longwinded!