Very incorrect. Yes, the HD1 streams have ads. On a few of the HD2 streams with voice tracked or live jocks have ads. The majority of the rest have no ads. iHeart wants to a) Eventually drop terrestrial broadcasting b) Competing against SXM for the app listeners. c) Brand name publicity.
Their #1 stream "80s" is commercial free, unless you listen to KSOF San Fransisco, over the air with live jocks, then it has online commercials.
Commercial free sample list I just verified:
80s Lost Hits
Classic American Top 40
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