One word Television....
Television was always going to be free with advertising to support it.
Present day - Most people can not get any over the air free TV and those that can are lucky if they get more than 3 channels.
TV is considered a necessity by most so we are willing to pay for it. The internet services are also a necessity and we will eventually pay for them.
This is sort of off topic, but since you mentioned it...
In theory, the HDTV conversion was supposed to allow people to get 2 to 3 times the number of over the air FREE TV channels as they currently got via analog due to sub-channels and additional new TV stations, but the FCC screwed that up through a series of miscalculations and flubs and many TV stations don't even run a sub-channel...
#1 The FCC chose a poor system for easy indoor reception in urban areas instead of the more robust European DTV system.
#2 The FCC compressed the TV dial and # of frequencies too much as part of the conversion to auction the airspace to cellular companies and for stuff like, BINGO, SKYPE, when, in hindsight, there could have been many more NEW over the air TV stations within the original 2-59 channel range if the original plan had gone through.
#3 The excessive compression of the frequency range of the over the air TV dial has caused more interference than the FCC originally tested the HDTV system for and in fact there ended up not being enough frequency space for the resulting # of existing channels. Good example: Philadelphia's WPVI ABC 6 really wanted to leave channel 6 and move to UHF because low-band DTV signals just don't travel very well, the exact opposite of analog OTA reception. This was not studied enough ahead of time and WPVI was left without a UHF frequency available to move to and therefor is stuck on channel 6 and one of the few HDTV stations to be left on channel 6 and indoor reception is now difficult.
However, there is some good news...
If you have an outdoor antenna with a rotor, chances are you really can get 2X the number of TV stations you used to get. But, if you have an indoor antenna, you are screwed and probably get LESS TV stations than before the big HD switch, especially if you live in an urban area.
Basically, the FCC screwed the HDTV switch up completely because it was beholden to the cellular industry and because media companies that own local TV stations didn't want new TV channels in local markets that might compete with them and the FCC listened to big business instead of properly handling the public's airwaves.
That in a nutshell is why most people cannot get over the air TV in their houses anymore. In a perfect world, the FCC would have stuck with the original channel 59 limit and people really would get 2-3X the number of FREE TV stations in their home right now as we speak.