My last post will help you to better understand..

You are close in what you are saying.  We will have ads in all our spots out of the gate because of FilmOn.  The difference is, this is a true broadcasts system we are using.  We have full control.  We will be working with Ad Firm partners who will be selling ads as well. These ads will be flat fee per ad cost. We can place ads nationally, regionally or locally.  We will also be able to broadcast certain shows on certain regions based on where the viewer is watching from. This is the same model as traditional broadcast networks. 

We have a marketing strategy which will will talk about at another time.