That model doesn't work for everyone's prefences--my wife, for example, prefers a stream of random content with a DJ and actually likes a few ads--but that describes my own decision process and personal taste exactly.
I don't listen to enough music or watch enough TV to justify an ongoing subscription, and I would MUCH rather pay an a-la-carte fee for exactly the things I want and consume them with no advertising. With music, particularly, my tastes are eclectic enough that that allows me to buy the specific, obscure stuff I like and listen to it as much as I want without any ongoing fee. And the more I pay in, the bigger my "personal radio" playlist of stuff I REALLY like gets.
I also strongly prefer being the consumer, rather than the product. And let's face it, when you buy a track or movie outright, you are the consumer. When you watch something ad-sponsored, you are the product being sold to the advertisers, like it or not.