Maybe, in the end that's still the same advertising based revenue that NYT is having problems with, except that the problem of making money off of ads is farmed off to the smaller blogs instead the paper itself. It may be that the smaller, more flexible blogs are able to hit on a balance that is able to fund both themselves and their news sources, but my suspicion is that if the ads aren't enough to support NYT on their own, they still won't be able to support it when they're spread out among a bunch of smaller blogs. If might work as an extra bit of revenue, but I don't see it becoming a main business.