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.