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This is a complex and nuanced question that is not as black and white as the binary choices you give. Both paywalls and ads, as they are implemented currently, suck and erode away at the usefulness of the Internet.
Paywalls
They typically tease content in the hopes people will be interested enough to pay for the content and other content. Sounds good on the surface, because the people putting in the effort to write articles should be paid. The problem is, the quality of journalism has also eroded to the point where it’s not worth paying for as much as it used to be. Excessive SEO has poisoned search results in such a way that paywalls content crowds out other valid search results. Throw in the fact that there is a possible future where articles may be written by AI, and it’s especially not worth it.
Ads
Ads are intrusive, they can contain malware/viruses, may be inappropriate for an audience (e.g., porn or violence related ads shown to kids). I’ve even had ads redirect the webpage to another website. Using fingerprinting to target “relevant” ads is a privacy nightmare, intrusive, and still is mostly irrelevant to the user. Those cookie pops are annoying as fuck — my guess is it’s malicious compliance with the EU — even when using a site that is based in the US that targets only US citizens. Certain browsers are blurring the lines between useful browser functionality and increasing ad revenue.
Either way you look at it, these companies are eroding public trust in search of the almighty “engagement” dollar. And then they’re all shocked pikachu when people find ways to circumvent paying for content. So they double down on making things as difficult as possible for the end user, which makes the user double down on hating these companies and their malicious practices.
Ads and paywalls can work, but everybody (from publishers/content creators to advertisers and ad networks) need to sit down fix the glaring problems:
I’m sure we all could come up with more solutions. But we all know that all parties involved won’t do a damned thing to make things better for us.
And yet no matter how bad it gets, it still somehow is profitable. So pirating material doesn’t seem to be an effective means of protest because it seems there are enough people out there willing to pay for all of this garbage.