I don't know enough about the operating revenues of the Daily News to have an informed opinion, but with that caveat I would say that yes, free distribution of the Daily News, at least in much or all of the city, would be an excellent idea. It would destroy the competing free alternative of the local Metro version, as it's a much better product.
Reading newspapers is a habit, and the challenge is to get more people hooked on that habit again. I think going all-internet is unlikely to work, as newspapers are still the superior method for delivering a lot of local advertising.
Worth a try for a year or so, anyway.
