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Connected TVs and over-the-top streaming don’t have to mean lost advertising revenue for content owners and could even create new advertising opportunities, according to a new report by Frank Magid Associates and commissioned by digital ad network YuMe. A national survey of connected TV users found a marked preference for ad-supported content over paid, ad-free content. Moreover 90 percent of viewers say they notice the ads in OTT streams and two-thirds say they are “likely” to interact with them. Even if that’s over-stated it’s an impressive number. Meanwhile, Fortune contributor Nigam Arora dives into the Apple TV 2.0 patent I discussed in my latest Weekly Update to uncover this nugget: a method for replacing ads in broadcast streams with locally cached ads on the fly. While Arora suggests it could be used to replace ads inserted by broadcasters with ads from third-party sources, I suspect it has more to do with giving the networks a way to target individual Apple TV users based on various metrics collected by Apple. That would be more of a win-win.