I think more people would subscribe if there was more local coverage. We can get state, national and international news from many other sources. Seems like it would even save TDW money as they could drop their subscriptions to things like the AP. But this doesn't mean they would have to hire a lot more reporters to cover the local beat either. Why not simply encourage people to submit their own reports? Yes, they might need an additional editor to clean up copy and to contact the submitter for clarifications but I would bet this cost would be more than covered by dropping those news service subscriptions.
For example, my MIL is in the DAR which gives out citizenship awards to 6th-grade students based on essays submitted. I would have loved to read about who won with maybe a snippet of their essays.
I know that, currently, TDW will sometimes print reader-submitted photos of local events but they don't push for people to submit. I've gotten a couple things in over the years, mainly for Habitat for Humanity, but they don't always print them and you also have to know that they will consider printing such things. Most people don't know it's an option.
Anyway, that's my solution to tumbling readership.
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"If a 'right' exists for me, but not for thee, then it's not a right but a privilege.' - Fred Clark