This is Murdoch's latest wheeze. Like many such attempts before, it is not going to get very far. People can simply read what they want to elsewhere. The advertising model is set in.
Murdoch is perhaps looking at the success of SKY compared to ITV, where the pay broadcaster is strong and successful and the free to air company struggling. There maybe some validity to this, but the content is still king; for Sky it is the football and movies.
In the world of the written word there is much less discrimination in terms of content. After all most, journalists seem to be sons and daughters of previous ones, it is not as if they got their jobs on merit.
Perhaps key information, such as the Financial Times, which helps people to make money, can charge, but most newspapers cannot as their AP newswire stories with a bit of comment on top is just too easy to copy.
So in all, Murdoch will fail. However, in the spirit of capitalism - how much would YOU pay to read this blog if the adverts were removed?