It didn't make newspapers more profitable. It made newspapers disappear.
Online music: contrary to the prediction that musicians would finally start keeping their earnings, instead there were no earnings to keep; for musicians or record companies (or record stores).
As Chris Anderson discussed in the The Long Tail, in the Internet age, a few big players make everything. Everyone else is toast.
Now the non-glamour part of the spectrum is suffering too. Online shopping is toppling the big box stores like dominoes. What can they possibly do to compete? Amazon doesn't need octogenarian greeters to get the job done.
The Internet is so efficient that not even Internet companies are able to make money. The online revolution so far: out with the old AND out with the new.