If everyone paid for ads free services, the price of ads free services would increase, amirite?

Your conclusion is not necessarily wrong, but your reasoning makes no sense. If everyone paid for ad-free services, advertisers would have nowhere to place their ads unless they offered more money. This increase in advertising costs would likely be passed on to the service users. The increase in advertising costs results in the service making more money. The "cost" is incurred by the advertisers, and not the service. So it makes no sense for that cost to be passed on to the service users by service provider. But, if everyone paid for ad-free services then the cost of advertising wouldn't increase - it would actually decrease because advertisers would pay less as fewer people are watching their ads. So there would be a reduced cash flow to the service provider, so the service provider may start charging more for ads-free services.

by Anonymous 1 week ago

This scenario could unfold if service owners weren't greedy bastards. Advertisers might offer significant sums to ensure their ads are displayed at all costs, compelling service providers to either eliminate the ad-free option or impose higher fees for it.

by Anonymous 1 week ago

Advertisers might offer significant sums to ensure their ads are displayed at all costs They already do but only if there's an audience. Media buyers look at CPM (cost-per-1000 impressions). If the service owner (networks) can't guarantee a certain number of impressions, media buyers are going elsewhere. Which means the network's fill rate (ads shown / when an eligible user can see an ad) will decrease. This depreciates the value the networks impressions. Source: Been in advertising for 15+ years

by Anonymous 1 week ago

Their algorithm is a black box. Their platform is great in terms of tools and targeting but they penalize accounts who don't follow their recommendations. They have such a huge presence so you can't afford to not be on it. But they generally get the best results as search is a low funnel channel. Their ad network is hit or miss

by Anonymous 1 week ago

What you're saying sort of makes sense but you got it all wrong. unless they offered more money The advertisers would offer less money because their ads would get less exposure, the platform in turn would make less money and increase the price of your ad free premium upgrade.

by Anonymous 1 week ago

Yes, but No. Yes, they would make less Money from ads. However, since everyone ist paying now they make more Money in total, but now they figure: "Hey everyone ist willing to pay this amount for our Services, we might as Well be able to Charge more."

by kirk45 1 week ago

Literally what Amazon video did

by Anonymous 1 week ago

Once people grow complacent with ads, that will be a sign to the ad makers that their ads aren't intrusive enough, so then enjoy having to pass a quiz at the end of an ad or say a vocal word prompt after the ad ends in this future to continue doing whatever the ad was interrupting.

by Complex-Recover-6017 1 week ago

Or I could just keep the streaming services ad free.

by Anonymous 1 week ago

Only if the service didn't have similar competition. This behaviour only tends to happen in a monopoly or when companies are in cahoots. Otherwise they'll drive down prices to beat the competition.

by Anonymous 1 week ago

The advertising industry is scum and should not be encouraged in any way, shape or form. It is your civic duty, as a normal person, to throw a spanner in whenever possible.

by Anonymous 1 week ago

Does it work on YouTube for iPhone?

by Anonymous 1 week ago

I don't know, i don't watch youtube on my phone.

by runolfsdottirdo 1 week ago

Therefore, for the benefit of the public, it might be better to collectively not pay for ad-free services. Instead, I simply turn the volume down and avoid looking at the screen when an ad appears. So close to the answer, and yet so far!

by FalseSpecialist 1 week ago

That's not how economics work. If everyone paid for ad-free it was because it was basically free already. Then the price would go up to what it is now which is likely the equilibrium.

by Bryanaadams 1 week ago

I was desensitized to ads long ago, I know I see a bunch a day and may be annoyed in the moment but then after it ends its like it never happened

by Anonymous 1 week ago

No you still take in the data. Not feeling it, doesn't mean it went way. You like ads. You want them. You enjoy them.

by Wooden_Flower 1 week ago

Now. I have seen maybe 1000 today, can't remember any of them

by Anonymous 1 week ago

At least offer the option. If it's so expensive that nobody uses it how is that worse then it not existing at all?

by Aggravating-Road 1 week ago

I don't disagree, ads can be great as you say. Similarly how televisions can be ridiculously cheap to buy. And a bit similar how you can get PS5 cheaply, I guess Sony even loses money in that deal. Those other sources of funds can keep the cost of entry low.

by Anonymous 1 week ago

No, I didn't say ads are great. I'm saying ads suck, and if we pay to get rid of them now, we'll likely end up paying even more to avoid them in the future. So simply speaking, the concept of ads free services is somewhat delusional IMO.

by Anonymous 1 week ago

Clueless? Mmkay then. Tell me you LOVE advertising, without telling me. Look, it's okay if you like commercials. Everyone has their quirks. However you are not entitled to call something obvious "clueless," without ridicule. Shooting yourself in the foot might be fun for you. Most people do not enjoy it.

by Wooden_Flower 1 week ago

The thing you're talking about here touches on market segmentation, product segmentation, pricing strategy, and product feature bundling. This is actually a very complex problem space where you're going to need to deal with price sensitivity and how that influences your customers moving across your product segmentation.

by Fluffy_Friendship214 1 week ago

It's very relevant, you just seem to proud to understand what this actually is and why it's important. Have a good day.

by Fluffy_Friendship214 1 week ago

Me, I just Seagram's Gin and Bear it 🍸🐻

by Interesting_Set_2606 1 week ago