That’s a weird way to look at it, obviously you’re watching the content.
I’d rather see it like this:
Free tier with ads
Subscription without ads (and better quality)
You are currently on the free tier. Yes, you can block ads (just like you can pirate movies), but that’s not the deal you were offered. I’m using an ad blocker myself, but I can understand the corporate side too.
They absolutely could add a hard paywall, but why should they if there are plenty of users who want to watch for free by paying with ads?