Comment by Marsymars

> The users who pay are the most valuable users to advertisers and the users who don’t pay are the least valuable.

But also, definitionally, the users who are willing to pay the most are the ones who the see ads as the biggest anti-value (i.e. cost) to themselves - so they'll be the ones most likely to not use the service if they're not given an ad-free option - cutting down the average user value anyway.