I hear this sentiment a lot. Here's why it doesn't work: If facebook sets the price at $20/mo for no ads no tracking, most of the people who can afford that ac

I hear this sentiment a lot. Here's why it doesn't work: If facebook sets the price at $20/mo for no ads no tracking, most of the people who can afford that actually generate more than $20/mo of ARPU for facebook with ads. So they get this adverse selection where mostly only the wealthy (highly valuable advertising targets) opt out of ads and this eventually decreases FB's revenue. If they raised the price to offset this, the adverse selection would get even stronger. The flip side of this is that Netflix could almost certainly make more money if they showed interstitial video ads, because this allows them to effectively make more money off wealthier people (because advertisers pay more to advertise to them).