TVCs are dead; long live TVCs

TV commercials (TVCs) have long been the frontrunner vehicle of advertisements. Historically, TV viewers paid for the content in two parts (alternatively said, the producers of content earned in two parts): directly in monetary terms, and indirectly by watching TVCs.

However, the TV content industry is undergoing change - much due to the disruptive, inclusive digital technology.
TV viewers now pay for specific content, and prefer to pay monetarily, and hence, do not watch TVCs. The other way is to record the content, and then fast-forward the TVCs.

Does this make TVCs obsolete?

Will this make other avenues of advertising such as product placement more popular? If yes, will the audience feel cheated?

What steps can Marketers take to strike a balance in the changing ecosystem?