There was some article about this a while ago. For Netflix in the US now there is an $8.50 difference in the ad tier and the standard ad free tiers prices. For an example let’s say once a user hits the 50th percentile or higher of hours watched in the ad-free standard tier they would have earned 8.50-??? in revenue from ads if on the ad tier. So half of their ad-free users are losing them profit in this example. It’s that unrestricted top end that is so appealing to them. The more you consume the more ads they show and the more money they make. So this will never stop.
There was some article about this a while ago. For Netflix in the US now there is an $8.50 difference in the ad tier and the standard ad free tiers prices. For an example let’s say once a user hits the 50th percentile or higher of hours watched in the ad-free standard tier they would have earned 8.50-??? in revenue from ads if on the ad tier. So half of their ad-free users are losing them profit in this example. It’s that unrestricted top end that is so appealing to them. The more you consume the more ads they show and the more money they make. So this will never stop.
Edit…clarify something