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Facebook has made it very clear that they don't want you to do this: you can pay for ad-free (I believe it's because they're legally obliged to offer that as a result of some things they'be done and deals they've made), but the cost is easily 100 times what they can make directly on ads for me. The only conclusion can be that they place an immensely high indirect value on serving me ads.


Same with streaming services, ad-free services seem to be unusually higher priced than the ad-supported tiers. Netflix for example charges $10 for ad-free over the ad support tier ($18 vs. $8). I’ve seen estimates that ad revenue per subscriber is less than that, maybe $4-$8. And there’s a cost to that revenue as well, so their profit is even lower. Why go through all that trouble? Maybe the economics works out somehow, in that users willing to pay to get rid of ads are so price insensitive they may as well squeeze them for more money? Or the lower subscription cost opens up enough new subscribers to make it worthwhile to tolerate a much lower margin. I am very suspicious though and wonder if there is a more insidious or otherwise opaque motivation behind it. Is there some kind of ‘soft power’ benefit to being in the ad business?


They’re probably assuming that anyone who would pay for Facebook has a large disposable income, which means that they’re a juicy add target, and they are worth much more than the average Facebook user.


But we're talking about people who hate ads here. How juicy ad targets can we be when we get angry over them?


They charge around $15 per month IIRC. It's more like 3x revenue per user.




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