@Dr Herbie: Well, strictly speaking, Channel 4 does get some of the license fee IIRC and yet still has adverts, plus a great many of the Sky channels (particularly premium Movies/Sports) don't. Of course with the increasing amount of in-show product placement these days the chances are you're probably being exposed in one way or another.

Personally I think the in-box apps shouldn't have any form of in-place advertising, it just seems tacky. That said I can't imagine spending much time actually looking at the music player app (as opposed to just having it in the background), which is surely the common case, so I can't imagine in-app advertising being a particularly good option for either consumer or advertiser there.