Are newspapers sinking? [Flickr photo via Inju]

There's been an awful lot of chatter recently about the future of newspapers and whether the old media titans can transform themselves into nimble, fast-moving digital media startups. On Wednesday, I'll be on a panel at the University of Washington titled: "Journalism on the Brink? Can Digital Save It?" Last Friday, it was the City Club panel: "The Newspaper Business: Sunset or New Dawn?"

It's a fascinating discussion. And I've been honored to participate in panels, radio programs and countless brainstorming sessions over the past few weeks. But I just wonder -- after reading of yet another newspaper bankruptcy -- if it is coming too late.

Innovation comes from many places, including desperation. Even so, newspapers for the most part fell into this trap by sitting on their monopolies and failing to recognize the change occurring around them. And as we've seen with many companies, a failure to innovate is basically a death sentence.

I talked about this at the City Club panel last week. (Full video here or after the jump.) But I also expressed hope for the future of journalism and the new models that are emerging. And I noted that Seattle -- with its concentration of digital media, online advertising and software talent -- has as good of a chance as any region to create something truly compelling when it comes to the "newspaper" of the future.

What do you think? Can newspapers dig themselves out of the hole? Can media companies transform to digital operations? We've offered some suggestions in the past on what needs to happen. But given that it is really a technology and business issue, we thought it might be worthwhile to open it up for discussion here.

[Flickr photo via Inju]