But it's interesting to me because I'd guess that the people with disposable income and willing to spend it on luxuries (including not seeing ads)... would be among the most valuable targets of consumer product/service advertisers.
so if ad-based free tiers are profitable at all, then they are going to be more profitable than the paid subscriptions, and ad-free options will go away.
Paramount+ already does this with their "adless" tier, it has ads. Unskippable ads.
Only relative to other Apple products might they be considered "cheaper".
Cable TV started out ad-free. The content was paid for by subscribers. But that wasn't enough. Now cable TV is just as ad-ridden as broadcast TV.
Even Spotify will randomly shove an ad in my face when all I want to do is navigate to my playlist, and I'm a paying subscriber. I hate the way it interrupts my flow so much that I'm probably going to cancel them in the next month or so.