You're forgetting about the market feedback effect. In a world where most eyeballs are in the paid options, advertisers will find ways to co-opt the paid option

You're forgetting about the market feedback effect. In a world where most eyeballs are in the paid options, advertisers will find ways to co-opt the paid options. The companies that accept those contracts will have more revenue with which to deliver the same quality at a lower price, and will attract viewership proportionally, etc., etc., etc.