name a single product that has

1. many competitors

2. ways to pay for the subscription but no tier exists to remove ads

i can't even think of one.

Ever heard of a thing called television?

Netflix

Netflix does not replace television channels, except when it actually partners with TV broadcasters. Netflix only replaces how you consume series and films. Many TV programs --news, short series, specials, local/regional programs, etc-- aren't available at all on Netflix, or when they are they only become available months/years later due to licensing.