I don't believe TV is necessarily moving to Pay TV that's far too simplistic for a wide dynamic range of available offerings. FTA via advertising would still be the overwhelming preferred option for the sponsors of F1 i.e. the people who really make F1 possible. They need as many eyes to see their adverts and branding as possible, Pay TV would be a huge impediment to that model as the tiny audience's would no longer justify the level of current title sponsorship deals. F1 would would not survive in its current form.
I do not and never will send a brass razzoo to any of Murdoch's companies so if Sky is the only option to watch F1 then I'd simply become an ex-F1 fan. I'm not averse to Pay per view and if Bernie made an offering via STBs like the AppleTV, Roku and the Web I'd certainly be interested but that would put F1 in competition with Broadcasters who have paid a mint for the rights and doesn't answer the audience size problem.
Music isn't free put Taylor Swift can easily put it into the hands of her fans for free and make a fortune. There are many ways that artists can make money from their work and one extremely lucrative way is to sell the digital rights, the fans get it for free and the artist gets paid by the third party who want to give away with their Newspaper or in the case of Apple/U2 inflict it upon every iDevice owner for a limited period, the Apple/U2 deal was reputedly worth $100 Million. Music is not a good analogy for the complexity of F1 funding.