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I worked in the cable advertising industry up until a little over a year ago. This was either a bad tv spot made in the "old days" on VHS or 3/4 inch, or has been copied multiple times, therefore losing its quality. I have seen some really bad ones in my day, but don't have copies to share.
Today with all the high def and digital production equipment, there aren't any excuses for bad commercials. Also, as I write this, I know that the stations now screen the commercials for quality due to the blame factor. The Cable Company or Local Broadcast channel doesn't want the quality of the commercial to reflect on them negatively.