That's kind of arbitrary though. Why if they wanted to price it at $2k if it were to be ad free? Would the consumer then prefer ads if offered with such choice?

That's kind of arbitrary though. Why if they wanted to price it at $2k if it were to be ad free? Would the consumer then prefer ads if offered with such choice? They are taking the risk of repelling their customer who paid $1k+ and still sees ads and they are entitled to the courage of their conviction to take that risk.