I’ve been using the internet for over 24 years. I can tell you that the internet can survive without ads or paywalls. Ads and paywalls are a product of greed. Ads are way more efficient these days but many used to take up so much memory. I remember when AdBlock or whatever it was called came out. It made browsing the internet smoother.
The only way the internet can survive without ads or paywalls is for the person/business hosting the content to pay for everything out of pocket.
A platform like YouTube could never exist without some form of revenue. I understand that there are small platforms out there, such as PeerTube, but they will never be comparable to the scale of YouTube without some form of revenue. Sure, people could grow PeerTube by spinning up their own instances, but then they need to provide their own hardware and storage. At which point you’re spending just as much, or likely more, than you would on a subscription service.
I think its possible it will just be slow and requires people to sacrifice a bit just like we are trying to do with lemmy. maybe find a different route for ads like how Brave the browser does it where it give the user the choice to see ads and give them and the content creator a cut if they agree to it, not that I trust that browser but its an interesting concept