The thing is this isn't really aimed at people who don't buy papers.
A few years ago I worked for a huge UK corp who were trying to move their subscription base from paper to web – its a difficult enough job when you've got the content people want, and no one else has it.
For me, I buy the Indy probably 2-3 times a month, when I want something to read over lunch – and could probably be persuaded to pay an equivelent for its online service, as it is the first thing I usually read online.
The same people who think all info on the internet can be free, are probably the same ones who don't believe that their LBS should make a profit…