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They've probably calculated that that the value they get from showing ads on more expensive TVs (read: to a more affluent audience) rises at least as fast as th
by bmicraft 2y ago
They've probably calculated that that the value they get from showing ads on more expensive TVs (read: to a more affluent audience) rises at least as fast as the sale price of the TV, maybe even faster.
- demosthanos 2y agoExactly, which totally undoes OP's argument. At the high end the manufacturer can have its cake and eat it too. By pricing the TVs in the high income price bracket and ensuring there are no ad-free versions on the market (easy to do because most consumers don't choose devices based on ads or not, even if they find the ads irritating after the purchase), they get both the profit of selling a luxury item and the recurring ad revenue for selling ads that they can confidently tell advertisers will be seen by affluent people. OP's argument assumes an efficient market, which over-the-air updates ensure this market cannot be.