Content owners grapple with many questions when it comes to managing, monetizing and distributing their content via the Internet. Among these questions the issue of what impact online content will have on the success of a company’s traditional form of media–be it radio, TV, print etc.–ranks high. But what happens when the Web paradigm complicates things even further; when subscriptions and straight up advertising go head to head and users prefer that certain content categories are free for their online consumption? A number of recent happenings have created a stir over the question: who is willing to pay for online content and for how much longer?

While Web users are happy to pay for certain types of content such as online games and adult entertainment, in a 2007 study by Frank N. Magid Associates a mere 4% of adults surveyed said they had paid a separate fee to read news online. Entertainment faired better than news, with 16% of respondents stating they had paid to view it online. But as more people turn to the Web for their daily headlines, to catch up on a favorite TV show and watch online videos, media companies must continually adapt to keep revenue streams coming in.

MediaPost’s article on Blockbuster’s buyout of MovieLink speculates:

The future of the movie distribution business will quite possibly involve the release of a film not only in theaters, but on cable, online, via your iPod or your cell phone, all at the same time. The movie distribution system will undoubtedly evolve and change from what it is today.

In order for the simultaneous distribution described above to be profitable companies need to find a balance between paid subscription services—those that only 16% of adults claim to have used for entertainment—and ad supported media delivery solutions. While a complete transition may still be years away, many believe the question of such a change is not a matter of if, but when. And such a shift would have quite an impact on the advertising industry.

Ad Age looks at the potential impact in this article. With the likes of The Economist and CNN removing pay barriers between consumers and their top tier news content the pressure is on for other news providers such as The New York Times and The Wall Street Journal. Rupert Murdoch has recently stated to the press that “going free is very much on the table” for The Wall Street Journal.

In a few years time, what place, if any, will paid content have online? Ken Doctor, president of the Content Bridges media consultancy argues that “the content world is becoming almost entirely ad-monetized.” However the next generation of digital-content models take shape, a few things are already evident: people like to get a variety of media content online; for the most part, they don’t want to pay for it; monetization by ad model looks most promising for the majority of content types. As such, search will play an increasingly pivotal role, connecting people to content and targeted ads that will drive revenue back to media companies.