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How so? Valuing the average user's data at $360 a year would mean it would be about $100Bn across the entire US. This is the amount of total digital ad spend ov
by shalmanese 13y ago
How so? Valuing the average user's data at $360 a year would mean it would be about $100Bn across the entire US. This is the amount of total digital ad spend over the last year. Comcast would have to own the entire digital ad world and have 0 cost for this to be a break-even proposition for them.
In reality, your user data is probably worth around $30.
- sixothree 13y agoGood point. Why would they offer such a steep discount if it were not worth that much? But $100Bn would be if every American were a paying customer. So maybe they are expecting the people most likely to accept this offer are households with many users. And maybe those younger users are the ones most valuable?
- shalmanese 13y agoThat you called it a "steep discount" is why. Imagine that the market optimal price for the plain service is $70 and the amount they could monetize from personal data is $2 a month. By offering the $100 tier, most people are going to think "Wow, $30 discount per month! That's a great savings" and a small percentage of die hard privacy advocates are going to buy the $100 plan on pure principle, leading to basically all profit from Comcast. Note, in this scheme, the $2 a month extra Comcast gets from selling your user data is basically irrelevant. They could actually just do nothing with your data and still come out ahead. It's the pricing psychology game that's important.