I read that the new cheaper ad based Netflix tier was really successful. So maybe a future of all paid products but a cheaper option for a worst experience with ads?
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Unfortunately, ad revenue is a poisoned well. Even if you are paying for the ad-free tier, you will be limited to content that was developed with a mind toward advertisements. Once you serve any ads, everything is under pressure to be optimized for ads.
Even if you don't mind the changes to the content, there's a constant pressure driving up costs and driving down convenience to continue avoiding ads. If you're paying for an ad-free experience then you have money, and you're willing to spend it. You are essentially forced into a bidding war for your own attention.
I'm sure they sell your usage data even if you pay to opt out of ads as well so it isn't like you've even completely escaped by paying to start with.
It was already full of ads via product placement.