Creating Online Revenue

In class our speakers discussed the recent drop in online advertising revenue. Therefor there is the issue of how will online newspapers and magazines create revenue if it is not coming from advertisers? He suggested perhaps going back to paying to access sites might be the answer.
I am not sure how I feel as a consumer if sites start going to being a prepaid site. As a "journalist" it makes sense to become a prepaid site, but do we really believe consumers are going to pay for a site? Think about it, whenever there is a shift in technology there is someone that is lacking behind. For example the shift to Smart Phones. Even though Smart Phones are all the rage now, there are still people using regular cell phones. You may wonder how this compares to the topic of advertising revenue. If there is a shift from free websites to needing to pay for websites I can pretty much gaurentee there will be someone who slacks behind and remains a free site. So if a consumer has the decision between a free site and prepaid site you can bet your life they will pick the free site.
However maybe we shouldn't write off online advertising yet.

“With the strongest first half on record, 2010 has so far indicated that Internet advertising is back,
and better than ever. While the recession clearly affected short term growth in 2009, with double
digit growth in both search and display during the first six month of 2010 the long term prospects digit growth in both search and display during the first six month of 2010, the long term prospects
continue to be strong.”
-David Silverman, Partner, PwC

According to the IAB Internet Advertising Revenue online advertising has increased 11.9% since 2009. The second quarter revenue of 2010 has increased 4.1% since the beginning first quarter. Perhaps we are all just getting the hang of online advertising.