[kevkrom]

Personally, I think the content providers are missing out if they don't offer a two-tier subscription model:

1. Basic (free/low price) - This is ad-supported either through non-skippable ads or on-screen overlays
2. Premium - Ad-free streams

That is, let the market decide if they want ads or not, but make sure you cash in either way.

[TomGuy]

I agree that the 2 options would be good.

Several years ago I followed some ‘forum’ discussions/complaint sessions regarding Hulu+Plus. Many wondered why Plus would not offer a commercial-free subscription service. Plus officials would just respond that the current (subscription with ads) was what they offered.

At the time, I came across an article interviewing one of the Hulu Plus officials. He said that they eventually foresaw Hulu Plus offering as many commercials as regular TV.