One thing with cable was that there was never a feasible way to offer separate packages with and without ads. (Yes, there were specific channels that didn't have them, but there was never a technically feasible way to do that across all channels.)
With streaming, we can avoid this because it's possible offer packages:
Price X includes ads
Price X+Y has no ads
As long as Y is something enough consumers are willing to pay, you can always price yourself out of the ad-watching category by paying more. The trouble with out conventional "freebie" internet services as we know them is there aren't enough people willing to pay the additional Y.