Not only are they paying for the end-product, but they're paying for the arms-race between advertisers as well, and that's a huge industry.
The amount of money the ad industry deals out to "content providers" must necessarily be less than the amount they get paid by their clients, which in turn must be less than the amount people paid to those clients.
If the distribution is not uniform, and some people benefit from the ad-influenced overspending of others, the business is then predatory.
The worst case scenario I have seen people come up with is more sponsored articles but I doubt that is a sustainable business model. Honestly, I never understood why I can read the New York Times online for free. I'm not feeling bad about it, but it's fucking strange. Baby steps, but I really hope something like Contributor (https://www.google.com/contributor/welcome/) becomes popular. Preferably not run by google.
[1]ads have a huge impact on society and on the psych of people.
When tobacco advertising was banned in the UK, tobacco profits soared because they no longer had to take part in the arms race.
So basically just for your own comfort you'd like a big company to become monopolistic and force its views on the web? I am not found of ads myself, but I think they are a better alternative to what you describe.
>of the 316 million people living in the U.S. are online, according to recent estimates by Pew Research Center and Forrester Research, that would equate to roughly $159 per person per year
So yeah about $50 for a family of four per month.
I read somewhere that the number is close to $70/family/month, growing at %10 per year. Would you still pay ? Would this model even fit most people ?