> 1) Most people don't want to pay for news. Even $1/year is too high.

Alternatives to increasing advertisements have been tried and found to work. However, these approaches may not be feasible for all publications—especially local news outlets that may not have as many resources. These approaches are to:

i) Start selling other services besides news. The New York Times—one of the most currently financially successful newspapers—has found a lot of success in its Games section. This was famously seen in their acquisition of Wordle, though this has already been popular with their Crosswords section. The company has also found success with its Recipes section. (This is not the only reason behind their financial success, but it's a significant part of their strategy.)

ii) Focus on financial news, which lets the publication frame their reports as having a financial value that arguably exceeds the subscription price. The Financial Times is also a highly profitable newspaper today, with one of the highest-priced subscription prices that can be about $500 USD a year for a standard subscription (depending on one's region). The Wall Street Journal similarly charges a high subscription price. Both are seen as important resources for well-funded companies to buy group subscriptions for. (Once more, this isn't the only reason for their success, but it's a major factor.)

iii) Focus on a specialized, niche area of reporting that other publications can't or won't cover—ideally appealing to institutions or large audiences willing to spend money. For example, several publications in Canada focus on providing detailed reports on federal politics (such as The Hill Times and iPolitics), which is useful information for their readership that fills a gap by less-frequent reports from the country's main newspapers—this lets them charge high subscription prices. The Athletic also used to be financially successful by standing out with its sports-only reporting, which led to its acquisition by The New York Times. These specialized publications can charge more, because certain audiences find these reports financially valuable.

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However, a major drawback to thinking about news through the lens of financial value is that many important news stories don't have financial value. While an outlet can attempt to use one of these approaches to subsidize the rest of their stories, it's also costly. It's usually not feasible for many local newspapers to fund the software development of a Games section (especially as this would need to compete with all the other online alternatives for one's attention).

It's also pricey to offer competitive enough salaries to create a newsroom to compete with The Financial Times, The Wall Street Journal, and Bloomberg. However, it's not impossible—there have been a few alternative publications that have found success by focusing on a niche, such as business news in a country outside of the US, or focusing on a sector such as biotech for the publication STAT.

It's a tough problem to try and fund local news. There is civic value for one's community to have a platform for providing a check against corruption by various institutions—yet in practice, oftentimes not enough for most local residents purchase subscriptions. Alternatives to support local news can include funding (such as through taxes), but that makes the outlet reliant on government funding, which is subject to change (and the perception, real or not, that the outlet is less independent from the government).

Increasing advertisements seems like a short-term solution for local news outlets trying to stay afloat, but it's hard for me to see this as a long-term solution for sufficient funding.