I disagree. I think the commercial-sponsored avenue is the way they want to continue.

When you provide a commercial-free option, the only way to squeeze more revenue out of it is to raise the subscription rate. But if you normally serve commercials too, then you can double-dip: you can occasionally raise the subscription rate (which risks angering your customer base) or you can simply add another commercial or two to a break.

And if that pisses off your customers, then it's easy for them to go to the commercial-free plan.

I have had no problems with Hulu's ad offerings and will happily stick with the ad subsidized option.