Even though I only read online newspapers (pay for 2 different ones) I think this is a serious miscalculation.
It's also been noted on FT that the magazine selection has in recent times become pretty awful (would you like a magazine about golf, or one about golf, or one with random pictures of large homes in Montana? Or how about one about golf?)
I do think that print newspapers are going to eventually become obsolete (though I don't think we are there yet). But I do think that print magazines with content that's not as time sensitive still has a market, and I really hope they would at least focus on this.