I don't know about the OP, but I generally would prefer to pay a reasonable fee to watch a TV show ($0.50-$1.00) rather than watch ads.
My wife bought The Walking Dead for $18 on iTunes and we just realized this week that it's only *six* episodes. That's $3 an episode, which is completely ridiculous. You can buy entire 24-episode seasons of most shows for $20-$30 in retail stores, which sets the reasonable price of about $1/episode for a physically-distributed copy of the show.
Meanwhile other shows, in particular Showtime, HBO, and CBS (have they changed yet?) are completely unavailable online via legal means. They won't even let you pay $3/episode, let alone the more reasonable $1/episode. We usually wait and get them "free" on Netflix, but most people shrug and pirate away.
The networks should set shows at $.50 per half hour (or 24 minutes, whatever it comes out to) OR X minutes of commercials, take your pick on a show by show basis, end of story. That's the choice we're already being offered, just in a severely convoluted fashion by waiting for DVD releases or being forced to use iTunes vs. watching real-time on TV or Hulu with commercials.