It's the same situation with smartphone apps about now. Yes, it's an absolute mire of low quality, exploitative crap at the moment, but when developers try and avoid this by just charging full price (like Nintendo with Super Mario Run), they find their apps are significantly less popular/profitable than if they'd be 'freemium' all along and end up getting a virtual tongue lashing from audiences who expect 'mobile app' to equal 'free with ads/microtransactions'.
Unless everyone charges money for content (which is likely happening because of business reasons) or some service genuinely manage to repair the media's reputation enough people will pay for it and also offers a better, more usable product than everyone else, things aren't changing.
One way to get the charge-for-content back might be to demonstrate how much privacy people are losing and to make some noise about it.
Instead you want an immense pool of content generation for that 27c per day. Good journalism isn't cheap - that's why paper newspapers cost what they do and are full of adverts - but you want to pay rock-bottom prices to individual sources whilst still pretending that you're paying a 'reasonable amount'.
There are movies that cost hundreds of millions to make which make up just one more item in the Netflix catalogue, and Hollywood is far from hurting. It may cost enormous amounts to produce good news, but this is true of the business model I am pointing out as well.
Interesting, the ones who tried to charge seem to be dying.
Isn't Spotify and Netflix evidence that suggest otherwise. All the music on Spotify is available for free on the so called dodgy sites. Torrents and whatnot. Heck, you can even listen to it for free on FM radio! However, literally millions of people choose to pay for Spotify - because it's worth it.
The news is no different. If news content providers provide a useful service, millions of people WILL pay.
My analysis is that millions of people avoid paying because news content providers don't sell news, they sell people. They sell their readers as fodder to the ad men. When that business model changes, people will pay for news.
I have experience of this world, having worked with old-school book publishers and old-media print journalists. They are way too entrenched in their understanding of publishing/journalism to make the change. The closest I've seen anyone get to something that might work, and they're still a long, long way off, is the Guardian. At least they understand that a) they need to provide additional content, suited to the medium (e.g. quality infographics, interactive data, etc.) and b) online advertising is not enough, but current paywall implementations are a poor substitute.
Spotify is a great example to compare. If Spotify worked the same way as online news, you'd go to Spotify, browse through some skeuomorphic representation of a CD rack, get interrupted, find an album you like the look of, listen to the album with an obnoxious advert between each song, put it back in the rack, repeat. Is there a single newspaper that will allow me to even, for example, do something useful with their content by collecting it / tagging it / whatever for future reference? Will they let my contacts, or famous people, recommend content on a particular subject? Will they offer any kind of api for other publishers wishing to reference their material?
Then LinkedIn bought it and promptly ruined, then shuttered it. Still waiting for someone to release a new newsreader app with the same scrolling format. I would have absolutely paid to keep and improve that app.
I'm pretty sure that should cover their server bills.
This seems to be kind of just how technology industries work (at least right now): you don't have a broadly strong market for "social news feed", you have Facebook.
But sure, when you reduce distribution cost to zero, you remove a lot of local advantage. And this isn't new. Improvements in music distribution, starting with the wax cylinder, have been slowly killing the local market for musicians. Why wait until the evening go a few blocks and pay to hear a so-so local band when you can play an amazing one in your house right now?
I don't really disagree with you, my point was just that the fact that paywalls can work for an extremely small set of publishers does not resolve the tension in comments #1 and #2.
The sites need to pay for servers somehow. Experience has proven time and time again that putting up paywalls just makes people go elsewhere.