Internet free ride soon over
business.theage.com.au
business.theage.com.au
So no one can accurately say "the Internet is going to do [x]" because there are a billion different business models at play. Yes, some free content will be moved behind a pay wall but some content behind a pay wall will start being given away for free. Because every business will have a slightly different business plan.
So someone who says stuff like this is just trying to stir the pot and not trying to seriously engaged in a conversation.
Pay models are clearly going to become much more important, if only because the cost of good content isn't going down, while ad rates are dropping like a rock. Consider the fact that it's effectively impossible to make someone look at your ad on the internet (it's only a matter of time before ad-blockers become common), and it's pretty clear that the ad-supported internet model is on the wane.
That said I don't think the ad-model is on the wane. I just think it looks that way because of a paradigm shift from what used to be a local world. In other words everyone used to need a local paper and all those papers carried the same AP stories. Now you have a world where all those papers compete against each other and obviously a lot of them are going to go out of business.
But that's not a problem with the Ad model it's just the economy of news shifting due to technological change. The money's still out there it's just consolidated.
My personal opinion, and it's just an opinion, but from what I've seen content that can't support an ad model usually isn't content people are willing to pay for.
Why?
Because I will continue offering content for free.
(tip: I'm being snarky. If this does happen, there will be a LOT of people who still offer content for free.)