Ads are a way to get money from users who don’t want to pay with their money. You can’t beat free on price and crucially you can’t beat free on convenience - paying even 1 cent above free introduces complexity and friction.

Solve this and you’ll solve the ad problem, but I’m afraid it isn’t possible because money involves controls and regulations which you can’t weasel out of and not end up in jail.

What about tiers like YouTube lite where you pay and you still see advertisement ?

How does that fit in your price model because to me it makes no sense at all yet people buy that. Same for Netflix tier with ads.