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Why are dollar-for-service inevitably going to switch to ad supported? I can't imagine the necessity of that, you already have a paying customer.


Because you always have to be squeezing more money from somewhere to keep your stock going up and ads are an easy place to get it


Ad serving is a (very) low-margin business, and only profitable with huge impression counts. Apple services (think iCloud storage plans) are high margin, with comparatively few opportunities to serve ads. There would be zero point to injecting ads into service contexts (as opposed to something like App Store views).


Do you have some examples of services going from fee-for-service to fee-and-ads-for-service? I am coming up blank. The closest that I can think of are areas that had been as based but then added fees as well, such as TV.


Cable TV, Netflix, Kindle, Windows


See Smart TVs.


Good point! And I guess that also brings in all the gunk that I hear gets installed on Windows from a lot of systems integrators. Which, funnily enough, has been one of the clear market differentiators for Apple.




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