I also don't see how 1000 viewers could be all that attractive to sponsors.
Since we are a regular sponsor, I'll respond to this one...
Sponsors aim to get their product in front of the eyes that will buy it. You may not want a cue today, but in 6 months, or 2 years, when you're looking for a cue, if you saw or heard something that made you interested enough in their product to look them up or refer another person to that product, then the advertising did the job they paid for. If the ad only runs in front of 25 pairs of eyes, if the price is right and those 25 paris of eyes are really interested in pool, it's a good deal.
Sponsoring can cost a lot, or a little. You have to balance the price you pay for ANY advertising to the income you need. We advertise in a little billiards news magazine that is growing like wildfire across the nation and we often hear from people who saw our ad, or who read our little blurb in the magazine. Because we receive feedback about the things we put in that magazine and the price is right for our needs, it is worth it to us to continue advertising in that magazine. We know for a fact that people are seeing it and the readership is growing so rapidly across the nation that more and more people see it every month. That's what you want as an advertiser. (Thanks, Don and Mary!)
As for the quality of the free streams, some aren't the best, but they are rapidly changing. A lot of it also depends on the service they are using to get the stream to you. If there is not enough bandwidth, there will be problems with the stream quality. I have seen one free stream that was as good as the picture on my tv, but a couple of weeks later, the same guy with the same equipment went to a place with not-so-good bandwidth and that stream was pixelated, choppy, broken, offline, online, offline, online... It was just awful. BUT, it wasn't his equipment or the product he offered to the public that was bad. It was the internet service the pool hall had for him to use that was bad. There was nothing he could do about it. He had the choice of shutting down and leaving everyone wondering about the stream, or staying up as much as possible and keeping us updated. He was terrific and kept on trucking through the whole event, even with all the quirks that could make a preacher swear.
Even a ppv stream event could have had such problems, if they didn't have enough bandwidth. So, you can't always judge a book by it's cover, when it comes to a stream... free or ppv. It's not always the streamer's fault. If their streams are always rough, then they might need better equipment, unless they are always at the same place. In that case, it might be the service or it might be his equipment. He can probably only change one of those things.
Another thing to consider is the tone of the chats and the people behind the mic. If you have little or no commentating, that might be just fine, in comparison to trash talk. When you are a sponsor, you don't just look for a reliable streamer or more eyes, although these things are important. You look for the audience you prefer to be appreciated by. Again, 25 of the right people is maybe less than we'd prefer, but at the right price, it's a good deal. So, 1000 would be terrific.
I don't do any streaming, but I'm trying very hard to understand what these guys go through. I do not have their patience and appreciate them more, because they do. I am quick to let them know when they're offline, so they can get back online, but I'm also very quick to pat them on the back for the hard work they do for those of us who can't be there.
If you are so willing to pay for a stream, there is nothing stopping you from sponsoring a stream, even as an individual. You can have your name and face plastered on the stream as a sponsor, or you can sponsor anonymously. How many times have you done that for your favorite streams? What is stopping you? You have already stated you'd be glad to pay. So, sponsor! Help the rest of us keep the streams free for those who can't afford it. Write your favorite streamers and let them know you'd like to help sponsor their streams. This stuff is no different than tv. These guys need help covering their expenses, somehow. Money from individuals is just as good as money from businesses.
Quit telling everyone you'd be glad to pay and just DO IT. Stand up to your words, if you're really that big!