Isn't that what ISP is? Except for the royalties part, of course.
Clay Shirky wrote a somewhat famous takedown of this idea in 2009: http://www.shirky.com/weblog/2009/02/why-small-payments-wont...
One excerpt that struck me is, "The essential thing to understand about small payments is that users don’t like being nickel-and-dimed. We have the phrase ‘nickel-and-dimed’ because this dislike is both general and strong." It reminds me of the perennial hubbub over unlimited cellular plans. I have so very many family and friends who only rarely use more data than you'd get from a $15/mo plan, but insist on clinging to much more expensive 'unlimited' plans they're grandfathered into because they hate hate hate the idea that on the odd month they'd have to pay an extra $10 for going over the initial allotment. Similarly for folks who barely text but still pay for unlimited texting because they'd rather pay $5/mo up front than $2.50/mo in ten-cent increments.
I subscribe to the local paper. If you amortize my subscription payment over all the articles I actually read in depth, I wouldn't be surprised to find I pay $1/article, but I think the subscription is well worth it overall. If they were to restructure their paywall such that I had to pay on a up-front, per-article basis, though, I bet even $0.10 would be enough to send me googling for the same information on a blog somewhere.
Edit: Oh, and what makes you think the advertising wouldn't come back eventually? When cable TV came out one of it's big selling points was no ads. Then, someone realized: "Hey, we can make even more money if we sell ads on top of the subscription fee." Nobody is going to resist the temptation to stuff ads into every nook and cranny unless it causes them to lose more revenue from losing customers than they gain in ad revenue, which never seems to happen.
Micropayments have been a perennial failure, but I wonder if anyone would actually use this?
I might if your "Netflix for web sites" was full of really high quality content that wasn't reachable elsewhere, but I'm not sure if I'm representative.
Not wildly popular, though. Patreon already has far more adoption.
its been proposed many a time, the problem being that everyone wants it to be their payment scheme and every site wants more than users are willing to pay.
Naturally, I think my secret sauce is better than everyone else's. We'll see.