The founder said this in the AMA thread:
"We are discussing making a new subscription tier for $1/month. If you are not a $1 subscriber, you can still use the site, chat, dj and vote, but you will only be able to have 1 or 2 playlists, and host 1 community with no staff. Once you become a $1/month subscriber, you can have what you have now. Unlimited playlists, 10 communities with staff, etc. For existing users, we would let them know that they have a limited time frame to sign up for the $1/month subscription."
"This is pretty extreme, I know. We're not exactly happy about the idea. I think a lot of people would get upset, as well. But what's more upsetting? $1/month or no plug.dj anymore?"
I do not think this would be unpopular at all. My own take is that Plug should move to a model that allows full functionality for X days and when a time period has passed, you should be asked to subscribe. You can carry on as a freebie account but you would be unable to dj, be restricted to default avatars and have no ability to create communities. That's not harsh. There's a period by which new users can interact like anyone else and see how Plug works and also, in that time, see if they like the service enough they want to contribute. I was concerned with some suggestions that immediately hurt newbies and prevented them from having any functionality as that would cripple new users but this solution, I think, is entirely reasonable. Donations are not working. Adverts will not work, cannot bring enough money in. You could have a tiered subscription system which gives more access to avatars and provides the perks we currently see and you could allow people to donate, kinda like reddit gold etc.
I do not think this is unpopular or awful like the founder seems to. Plug, just do it. Your current donation drive is unsustainable.