There is actually more to it than that. Many people have thought online magazines would be the salvation. But look at one of the most prestigious of the online sf/fantasy online mags, Baen’s Universe, closing as of April of next year. Now I suspect this wouldn’t be happening if Jim Baen were alive. I could be wrong though. Heaven knows, it was run by some experienced people over at Baen’s.
I have no idea what they were doing about salaries and office space, of course. But they said about a month ago that they couldn’t foresee it not losing money in the near enough future.