Comment by madars

I wonder how it works from the business perspective. There is an adverse-selection argument against introducing ad-free versions of an ad-supported service: the people who are most likely to pay for an ad-free experience are also the same people who are most valuable to advertisers. So if that group is gone, the remaining users could either command less ad revenue, or be shown higher CPM ads (e.g. ads for prescription drugs, not available in EU; or ads for adult content, incompatible with a family-friendly platform). How would this work? Or maybe the adverse selection assumption is faulty? Or maybe this choice could help avoid an EU fine of some sort?