Newspapers are not the most popular kid in class right now. In fact they seem to be getting beaten up and bullied at every break.
What's wrong with newspapers? We could spend the next year struggling to answer the question, while traipsing through the undergrowth of the internet, of consumer tastes and news appetite, and of the competition for time, money and advertising. Newspapers are, of course, a format, not a media channel.
In the future, social networks will dominate media distribution. But that's just a return to the way things used to be.