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A comment on Facebook and Instagram to Offer Subscription for No Ads in Europe. Parent comment

Re:Facebook and Instagram to Offer Subscription for No Ads i... by paxys on Monday October 30, 2023 @11:47AM (#38070987)
Per quarter, not per year. That is also the average across all users, while only the power users (ones that make up a majority of the ad revenue) will pay for a subscription, so their ad value is a lot more than average.
[ Parent | on HN ]
Re:Facebook and Instagram to Offer Subscription for No Ads i... by internetter on Monday October 30, 2023 @11:50AM (#38071055)
If the average revenue per user is then 72$ per year, then, it follows that the appropriate price is 6$ a month, not 12$?
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Re:Facebook and Instagram to Offer Subscription for No Ads i... by paxys on Monday October 30, 2023 @11:52AM (#38071083)
Read the second part of what I wrote. If every existing user was forced to subscribe then $6 would be appropriate. If only people who earn them $50/mo in ads end up subscribing (which is a lot more likely) then Facebook will lose money on this option.
[ Parent | on HN ]