The moment you introduce ads to your service you invite a disease that will rot your service to the core.
The next step after ad-free subscription levels at a higher price is... ad-full subscription, because why leave money on the table, when you can get people to subscribe and then show them ads anyway (maybe different ads, maybe less of them, but still).
I suspect the problem is although everybody sees the ads the value comes from the wealthiest section of subscribers. These are the people most likely to pay to block the adverts. Lose those and you will lose your advertisers.
For low income households that can be quite a lot. Combine that with Netflix having significantly less content in Denmark than the rest of the world, and it might not be such a good deal the begin with after all.
So I guess it depends on where you live and your financial situation.
I canceled it because it was obvious their content is stretched out for no reason other than to waste my time. Also it’s full of product placement which takes me out of the story.
I won’t be surprised if they have more price tiers for different quality, or if the price tiers that already exist get wider. Kinda like the way the UK TV licence comes in normal and black & white.
At some point the price difference between the quality product and the cheap product becomes so vast that the quality product company must shrink either by reducing the quality of the product, or by reducing the manpower necessary to produce the quality product.
It's better to first introduce ads into the current subscription plan, and then introduce ad-free subscription levels at a higher price.