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Free could work if you could control how free it is.
If I could keep my content only on my free site, it could work just like TV or Hulu does and be a success. But my free content becomes everyone's free content within 10 minutes.
Being recklessly free gives me no advantage in the current climate.
If 50 sites were able to steal Hulu content without any repercussion and display it on their own site, Hulu would go under in about 48 hours.
Free can work, but you have to control how free it is. That's the key here. If you figure out a way to do that, you'll do OK with free.
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