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A comment on American Airlines and The Points Guy are suing each other. Parent comment

Re:American Airlines and The Points Guy are suing each other by learc83 on Thursday January 20, 2022 @03:20PM (#30014202)
The problem is that once you segment your customers into paying and non paying. The non paying customers become much less valuable to advertisers and the paying customers become much more valuable.

So the service needs to charge even more, which makes paying customers even more valuable in a feedback loop. The usual result is that eventually the service can’t help themselves and starts showing paying customers “a few” ads. Then the definition of a few gets larger and larger.

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Re:American Airlines and The Points Guy are suing each other by asxd on Thursday January 20, 2022 @03:26PM (#30014331)
> The non paying customers become much less valuable to advertisers

I can see this being true, but I'm curious why. Is this because the advertisers know the paying customers have the cash to pay for the service?

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Re:American Airlines and The Points Guy are suing each other by Nextgrid on Thursday January 20, 2022 @03:28PM (#30014364)
Outside of a very few markets that prey on desperate people's last dollars (payday loans, etc), most advertising's objective is to get people to buy something - advertising to those who can't afford it is useless.
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Re:American Airlines and The Points Guy are suing each other by matheusmoreira on Friday January 21, 2022 @07:42AM (#30022638)
Advertisers want the attention of people with disposable income. If someone's paying for something as superfluous as a streaming service, then they must have more than enough money to spend on whatever they want to sell.

The more you pay in general, the more they want you to pay them specifically.

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