Pandora Learns the Cost of Ads, and of Subscriptions

At best, advertising is something people tolerate while consuming media. At worst, it’s a turnoff. Media companies engage in a delicate balance between showing audiences enough ads to earn a profit without annoying them so much they leave altogether. A new study by internet radio service Pandora shows that too many ads can motivate users to pay for an ad-free version, but push many more to listen less or abandon the service.

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