Another way to prove this to yourself is to think, could there be broadcast TV without ads? And of course, the whole broadcast model falls apart without advertising. But without broadcast to compete with, is it likely that basic cable would be as inexpensive as it is? Even if you're of the view that costs don't matter to price, only what the market will bear, it seems self-evident that the market will bear less when there's a free substitute of reasonable quality available.