In the mean time Netflix started with 3 CDs per month plans and when they began streaming on 2007 we didn’t use it at start because we assumed that it would cut out of the 3 movies allotment. So we were scared to use it for a while. Yet we used it regularly - because unlike the cable service, streaming didn’t have ads. And ads were massive massive abuse and waste of time for consumers. You can benchmark the level of abuse by the types of ads in the super bowl: Alcohol, crypto, gambling, cars…
The reality is that cable was a paid premium service, unlike broadcast TV, which was free and littered with ads. Mix the two and you lose the golden goose.
That said, the bravado of that executive stuck with me since then.
The reality is, most cable channels had ads from day one. Less ads than most broadcast stations (which made up most of the channels you had on cable at the start anyways) but still a lot of the first cable-only channels had ads from the start. WTBS had ads on cable in 1976. MSG/USA had ads on cable starting in 1977. CNN had ads on day one in 1980. MTV had ads on day one in 1981.