It's some criminal gangster saying "hey that's a nice free ad-tier, shame if something happened to it. Listen, you pay me $36/year for protection, and all this goes away. Capice?"
Remember when the appeal was that streaming was cheaper than cable? So, yeah. Shareholders were not going to just take that lying down when they know what can squeeze their consumers far harder than they anticipated.
Plus, they are now removing movies that you have "bought" or "purchased" while offering NO refunds.
"If buying isn't owning, pirating isn't stealing" -Cory Doctorow
But if anything, the racket is bundling free shipping with ad-free video and everything else. Raising prices periodically to keep up with inflation is not a racket. And whether you would prefer to get downgraded to the advertising plan or automatically pay more is a personal choice, and automatically downgrading you rather than renewing you at a higher price is in some ways a more sensible default. (Though I'd prefer to be upgraded to the higher price generally and be notified so I have the option to downgrade or cancel, though downgrade really isn't an option I would consider.)
And I wish I was being dramatic here, but truly anytime I feel I've wrapped my head around the depravity of man I just remember that we have "paid" tiers of TV that show ads and I sleep soundly knowing the bottom remains unfathomed.