Internet business got trapped in advertising due to the whole classic phenomenon of "bad money chases out good money". I.e. a similar example lies in businesses funded by VC runways for several years; even though those businesses may not be "actually profitable", because they're getting fake profits (VC money) for several years, they're able to compete against "organically funded" businesses that are actually earning real profits and are naturally solvent. More importantly though - they're often able to compete so well that they drive those other companies out of business. It leads to a churn scenario where, since the only businesses left are VC-funded, everything dies/gets-acquired within a 3-5 year time window (except the FAANG giants doing the acquiring).
Advertising did a really similar job.
It completely destroyed most web businesses trying to get their customers to "actually pay" in some form or another, and ... basically the only survivors have been a few giant media conglomerates (with their own ad divisions), and the FAANG companies (actually selling the ads). Everybody else is sharecropping on google/facebook's proverbial plantation, and like all similar historical situations of rentiership, the vast, vast majority of them have gone out of business and been acquired by the proverbial landlord (this is why, you know, something like 2/3 of the newspapers in the USA have gone out of business in the last few decades). What's even worse with the newspapers is that in many cases they weren't even acquired; they were just shuttered completely.
(The only other major survivor has been people selling actual physical products over the web.)
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There are thousands of articles about why local journalism going out of business (and not getting replaced by anything, typically) is bad, and I'll leave googling those as an exercise for the reader.
Your assessment isn't wrong, but the proposed solution here is to not support any business at all, which is just as bad. Anything that is plans to supplant this and doesn't immediately approach the problem of "how are we going to pay the journalists?" is going to fail.
People here won't like this, but the only realistic alternative to the advertising model where the vendor subsidizes the content, is a DRM model where the user pays to unlock the content.
Advertising did a really similar job.
It completely destroyed most web businesses trying to get their customers to "actually pay" in some form or another, and ... basically the only survivors have been a few giant media conglomerates (with their own ad divisions), and the FAANG companies (actually selling the ads). Everybody else is sharecropping on google/facebook's proverbial plantation, and like all similar historical situations of rentiership, the vast, vast majority of them have gone out of business and been acquired by the proverbial landlord (this is why, you know, something like 2/3 of the newspapers in the USA have gone out of business in the last few decades). What's even worse with the newspapers is that in many cases they weren't even acquired; they were just shuttered completely.
(The only other major survivor has been people selling actual physical products over the web.)
--
There are thousands of articles about why local journalism going out of business (and not getting replaced by anything, typically) is bad, and I'll leave googling those as an exercise for the reader.