[ChuckMcM]

This is the hard nut "I canceled my paid subscription because I got tired of looking at ad's".

It is interesting that NetFlix traffic started exceeding torrent and p2p traffic, it will be more interesting if the price hike at Netflix reverses that trend.

Many people don't think that they are 'paying' for something when they sit through and advertisement, and yet they don't sit through it when there are 'too many' ads. Economically that transaction is identical. If you consider ad tolerance as the currency, you 'raise' the price by putting in more ads (which does raise the income of the content provider) but that drives away people (reduces demand) when people are ad saturated. Lower the number of ads, get more people. Since you can't always make enough to run a business, there is the advertisement + subscription which is two currencies vs just ads.

Another HN comment talked about the need to disrupt the movies, this is the same for TV.