No one wants to be advertised to, but powerful lobbies argue that ending ads will lower consumption and thus harm the economy; and no politician wants to lower GDP.
No one wants to be spied on, but powerful lobbies argue tracking people allow better security; and no politician wants to be soft on crime and terrorism.
Even when you give them the option to pay, with no ads or tracking, the conversion rate is still around 0.5-1%.
We should however make it easier to pay for content online; let's implement HTTP 402 and integrate it into the users' browser and internet bill to reduce friction. Who wants to create an account and enter their credit card details to read a single article or watch a single video?
No, they overwhelmingly are not. When given the opportunity to not pay, and do so anonymously (no social shame), the actual pay rates drop to the 1-5% range.
This is a clear trend from thousands of creators who give simple payment options to those who wish to support them directly. The conversion rates from "ad-supported (but blocked)" to "paying member" are usually around 5% of the active audience.
The numbers are atrocious despite the deafening virtue signalling of comment sections ("I always pay creators to support them!")
If people actually didn't value the content, they wouldn't devote their time to it. I don't know anyone who regularly devotes hours a day to something they get zero value from...
All the paywalled news agencies want a monthly subscription. But I, as someone who doesn't like getting all their news from a single source, am not interested in signing up for news subscriptions because the cost would pile up fast, and to be honest I don't read that many news articles in a given month.
I think we need some kind of usage based billing system where participating outlets can set a price per article, and users can agree to be billed for that article when they go to view it.
I doubt that. People tend to spend their money regardless. Advertising just determines what they spend it on.
Advertising is only used heavily when all products are similar, otherwise the best would naturally rise to the top.
For example, washing powder/liquid is advertised heavily on TV, yet do you really believe one brand of powder/liquid gets your clothes cleaner than any other?
You're assuming people would still have the same amount of money, but for most money is not a given, and people strive to earn money precisely because they want to buy the things they were advertised.
Without the social pressure to acquire things one doesn't need, it's very possible people might simply work less and use that time for other things.
My need for websites is much less predominant and really I could live without. So of course I bounce when mildly interesting websites ask to host cookies on my browser or want me to create an account and enter my card details.
If one considers maximizing utility the goal of economic science, then this is in fact good, as it redirects me to more useful venues like doing chores I'd been putting off instead of mindlessly scrolling online. Some metrics such as GDP however might suffer.