Earlier quoted context omitted.
> $8 is way more than the profitability of an ad supported user. There's no excuse for "half the ads", it should be none at all. Adverse selection. The people willing to pay to remove ads are probably your most profitable users to show ads to.
That's a good point, but while I don't have any data, I've heard anecdotally that for services that implement paid user tiers with no advertising, they always make much more from paid users than ads, on the order of 5-10x. While there is a distribution on how much ads users are worth, it's not enough to overcome that difference _at scale_. There are a small number of users who are worth $$$$, but they're a small amou…
Similar to how people self selected into iOS and android and to this day its way more effective to advertise to less price sensitive iOS users than Android users with cheap phones, though the effect was even larger in the early days.