Ads are by their very nature derogatory to anywhere they are placed. Ads never add value to any experience. They always take time and attention from the viewer's intended activity.
Not all product information is advertisement.
Not all product information is advertisement.
Competition was incredibly fierce, it just came from cable TV.
The main subscriber base for Netflix was essentially folks who didn't want to see ads, and were willing to ditch cable tv for that experience.
Controlled viewing comparable to directTV / OnDemand was the main selling point. Being able to binge an entire show at will. Breaking Bad hitting its peak. I think they would have gotten away with it
Remove the advertisement / manipulation from the content and it's more valuable to the consumer.