Yep, it's good that people will be able to have a choice between the two funding models or, if they can't afford to pay, won't be excluded from the growing world of streaming.
It will be like going back to the 1970's though with having to sit through the adverts in the middle of a programme
I don't know if this works for all of the ad funded streaming services, but when I use the ad funded version of the ITV Hub, I move the cursor right to the end. It then shows all the adverts with the sound turned down whilst I do something else. Then, when it's finished, I can watch the programme uninterrupted.
I'm not sure how long this lasts for though as I once left it for a couple of hours and found that it wanted to play out all the adverts again.