Ads coming to prime! Must pay more for no ads versions!

[Comicfan]

Originally Posted by kevin87

This is what I don't understand. Introduce an ad-supported tier if you want... but don't replace the ad-free tier price with the ad-supported one and raise the price of the one without. The ad-supported tiers should always be introduced at a LOWER price because they're getting the ad revenue plus the subscription price. Greedy jerks.

I think the mentality is that they don't want people subscribing to the ad free version. The companies make more money from the consumers on the ad supported tier.

These streaming service only create revenue from us once when we subscribe to an ad free tier. With an ad supported tier, they make money on that initial sign up AND then continue to make money from the consumer every time they watch a program due to the ads.

It's better for them for us to pay a little less to sign up but have continuous revenue come in via commercials.

So what do do they do? They try to to make consumers go for the ad supported tier by making it look more attractive. How to do that? Make the ad free tier a lot more more money to make the ad supported tier more attractive to us and to cover for the money they lose on subscribing to the ad free tier.

Making the current tier the ad supported tier at the same price and creating a higher priced ad free tier is probably the start. Next will be to continue raising the ad free tier price while keeping the ad supported tier the same in order to force people to be priced out of the ad free tier. Basically making an ad free tier ultra premium.