Netflix could have gotten away with ads a few years ago maybe. Not now with all the competition available. their content is relatively weak tbh now that a lot of the classics have moved to other platforms. I'd be gone immediately
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