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by flyinglizard 2504 days ago
The problem is that by doing that, you’re skimming the top percentile of your user base with the most purchasing power. You’re much less attractive to advertisers then.
2 comments

The same argument could be made arguing against the launch of YouTube Premium.
YouTube has essentially monopolized video (especially being that Netflix has no adverts). YouTube knows that from that position, it’s competing only with adblockers.
Notice how the NY Times has subscriptions.
Which makes the New York Times very attractive to advertisers since they show adverts to their subscribers, meaning that they offer a pre-selected audience of people with higher purchasing power.