Wow. Just wow. You hipsters are really missing some key points.
1. The quote says "the average time it takes for a new magazine publication to get profitable is five to seven years." That's evidently for all new magazines, not just digital ones.
2. Both print and digital news have expenses, like skilled reporters traveling around interviewing people, doing investigative journalism.
I know you hipsters aren't used to understanding that quality things require money. You hipsters are used to your free things and low-quality bloggers who just regurgitate press releases. Wow. Just wow. You hipsters get everything free one way or another, don't you? Free news, free food, free clothes. It must be nice being a 99%-er.
IT should be noted that MOST publications make little to no profit, even if they don't crash and burn. Follow the money. Faux corp knows what it is buying.