"Too much ad clutter makes some people say, 'I don’t want to be exposed to all these ads,' and they go to a competitor," says Thales Teixeira, associate professor of marketing at Harvard Business School.
That's a challenge for services like Hulu, because the ad-free-TV competition is growing: Netflix, Amazon and HBO, even YouTube, is working on a paid, ad-free model. That's also one reason the streaming service may consider a new no-ad tier, which is more expensive than its current $7.99 monthly fee for the top service. But all this buy-your-way-out-of-advertising poses a problem for traditional advertisers.
Source: "Hulu may offer ad-free TV, for a price", Marketplace.org - Jul 17, 2015