Re: Because it means that publications like The Register will go bust.
I think you've made the point. Sky needs ad revenue even with people paying £50/month.
News International is losing ad revenue and people aren't taking out subscriptions, even with their aggressive paywall.
At the other end of the spectrum The Guardian is just losing money and shedding staff.
The publishing industry has no answers. We will lose publications and society will be the worse for it. Who will hold the government to account when The Guardian finally exhausts its trust fund?
One small news site I use offers a £15/year ad-free option. About 1 in 5 of the regular posters take up the offer.
For a national newspaper my guess is about £400/year will keep the lights on if a reasonable (i.e. more than The Independent's) audience takes them up.