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12 Days of Christmas GMAT Competition 2025 - Day 5: Over the last two

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canopyinthecity

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19 Dec 2025, 13:00

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Paradox: Reduced prices and ad-supported subscription, increased marketing, but still not increase in new subscribers. Survey shows the reason as price.

(A) This suggests quality is the reason, that drop is occurring. Not explaining paradox. Not correct.

(B) This suggests ad is the reason. and viewers might opt for more expensive - this is not in line with the survey. Cannot be correct.

(C) This talks about less profit for platform. Irrelevant to the paradox explanation.

(D) More streaming. This suggests a possibility that existing subscribers are sharing with target base probably. That is why there is stagnation. This does help to explain the paradox. Correct

(E) Other platforms offering content - suggest that customer might be moving there. But there is not mention about prices. Not Correct.

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Bunuel

Over the last two years, multiple streaming platforms have introduced ad-supported subscription tiers at lower prices, aiming to attract price-sensitive customers and generate ad revenue. Despite these lower-cost options and increased marketing, the number of new subscribers has stagnated. Surprisingly, surveys reveal that many non-subscribers cite price as their main reason for not joining, even though ad-supported plans are significantly cheaper than traditional ones.

Which of the following, if true, would best help resolve the discrepancy described in the report?

A. Many non-subscribers associate ad-supported streaming plans with low content quality or limited access, leading them to dismiss these options as poor value
B. Viewers who are highly sensitive to advertising often opt for more expensive, ad-free tiers rather than ad-supported ones.
C. Ad-supported plans tend to generate lower revenue per user than ad-free plans, making them less profitable for the platform overall.
D. The average number of hours streamed per week has increased among existing subscribers, particularly in ad-supported tiers.
E. Several competing platforms have recently introduced exclusive content available only to premium (ad-free) subscribers.

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For the past two years, multiple streaming platforms have introduced ad supported subscription tiers at lower costs. The reasons cited are two fold:

1) attract price sensitive customers, and
2) generate revenue.

Despite such low pricing and extensive marketing campaigns, the number of new customers has stagnated. Actually, the low pricing and extensive marketing should have created a pull factor, strong enough to increase new customers.

To understand the reason behind such a trend, a survey is taken. The outcome is surprising- as many non subscribers quote : “ price” as the main reason for not joining the ad supported subscription tiers.

Why is the survey giving shocking results? The ad supported subscriptions are significantly cheaper than the traditional ones.

So, there must be some other reason for the people to decide in such a manner.

We need to resolve the discrepancy in this.

A) This is the correct answer. As many non subscribers, feel ad supported subscription services to be not in par. The quality is low, and the access is limited too. So, they consider it to be of much lower value, despite the price point being acceptable. These customers have prioritised value more than the cost. Hence, this explains the actual reason for not opting into it.

B) Viewers who are sensitive to advertisements , and who are well enough usually shift to highly expensive ad free subscription plans. But, some who are averse to advertisements also make the shift. This option explains how a particular subset of customers act as a whole. But, our concern is specific to ad supported subscription plans, even though being low priced have failed to attract new customers. Hence, wrong.

C) This option speaks about the revenue generated per person or per capita revenue. It makes a comparison on per capita revenue between ad free subscription vs ad supported subscription. Per capita revenue is irrelevant. Hence, wrong.

D) The increase in number of hours for ad supported subscription can be of any reasons - festival season unlimited access, promotion plans of unlimited access for a week as a part of advertising campaign. This does not address the issue, why fresh blood was not infused. Hence, Wrong.

E) This explains a plan (exclusive content) Launched only for ad free subscribers, across several competing companies. This is completely irrelevant to why the new customer base has not widened, despite low price points and extensive marketing campaigns. Hence, wrong.

Option A

vasu1104

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19 Dec 2025, 15:28

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outcome- new subscribers has stagnated
plan- started ad supported subs with low price
goal- get more customer and increase revenue.
reason- price is main concern despite this model more cheaper than traditional one

A= if content quality is issue then it make sense to dismiss the option. keep it.
B = it actually goes in the opposite direction
C= profitability is not concedrn
D= num of hours streamed is not issue
E= not talking about competitor

Bunuel

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AakkashVerbal

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19 Dec 2025, 16:29

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This one feels deceptively easy, still, I went with my instinct - A. I'll be very interested in seeing what the answer pans out to be.

Let's break down the argument.

Fact 1 - Ad-supported subscriptions introduced, lower than normal prices, aim is to attract price-sensitive customers + make money from ads.
Fact 2 - New subscribers have stagnated. (wasn't sure how to interpret this, has the number of new subscribers become 0 or has it remained a constant +X / month?)
Fact 3 - The main reason given by non-subscribers is price.

Objective - introduce information that resolves the discrepancy in the facts.

A - Many non-subscribers associate ad-supported streaming plans with low content quality or limited access, leading them to dismiss these options as poor value. Correct.

If the non-subs associate ad-support with poor value and dismiss it, then they will naturally look at the higher-tier subscription, which is more expensive. Hence, these non-subscribers would be deterred from paying as, comparatively, they will feel that a decent service is expensive, while a cheaper one is poor quality. Therby effectively making both the ad-supported tier and the entry-level premium tier seem poor value.

A looks good to me.

B - Viewers who are highly sensitive to advertising often opt for more expensive, ad-free tiers rather than ad-supported ones. Wrong.

Even if this is true, I cannot assume that every non-subscriber is highly sensitive to advertising. Even if I assume that, the number of new subscribers is still stagnant. Does not explain the dissonance at all.

C - Ad-supported plans tend to generate lower revenue per user than ad-free plans, making them less profitable for the platform overall. Wrong.

This is just out of scope; we are not concerned with how profitable each plan is.

D - The average number of hours streamed per week has increased among existing subscribers, particularly in ad-supported tiers. Wrong.

Again, out of scope. Doesn't tell me anything about why the new subscribers are not increasing. It might be that a TV show has gone viral, hence increasing streaming hours.

E - Several competing platforms have recently introduced exclusive content available only to premium (ad-free) subscribers. Wrong.

It seems tricky to eliminate, but even if several competing platforms have introduced exclusive content on their premium tiers, being exclusive does not mean that people as a whole will flock to the competing platforms. This MIGHT be an explanation, but I will need a few assumptions, such as the one mentioned, to make it fit the facts.

Hence, A is the best out of the bunch.

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19 Dec 2025, 18:54

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non-subscribers complain about price. But ad based model is cheaper than traditional ones. Yet they didn't see increase in number of subscribers

Gap: there is some other reason due to which these people are not subscribing

1. may be they don't like ads and feel ads based watching is worse than not watching
2. They already have alternate arrangements like piracy and don't have a need to switch and pay for the stuff.

A. Correct. If they feel it is low value, then they may not subscribe even though it is cheaper than before.
B. This is talking about existing subscribers. Not the target group.
C. Profitability to the platform is not the question. Why aren't more subscribers not subscribing.
D. Existing subscribers' behavior is not in question. We are interested in new subscribers.
E. Again not the target group.

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19 Dec 2025, 20:43

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A : Additional info to explain the discrepancy.
B : Need to understand why low cost interested new subscribers not joining. - Not explaining discrepancy.
C : How it is affecting platform. - Not explaining discrepancy.
D : Current subscribers watching more hours. - Not explaining discrepancy.
E : What other competitors doing - Not explaining discrepancy.

Answer A.

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19 Dec 2025, 21:01

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I will opt for A.

Let's look at the argument what author has presented to us.

Fact 1- In the last 2 years, consider 23-25, streaming platforms like Hotstar and Prime launched cheaper plans but with ads in between the running content. They are aiming for attracting new customers who are price sensitive, and these platforms are seeking to generate revenue through ads.

Fact-2: No increase in the new subscriber base. Why did it happen? A survey says these non-subscriber says price is the reason.

Discrepancy- If price is the issue, why are they not rooting for the new plans that have been launched, considering only these problems?

The question asks to find a reason to solve the discrepancy that we noted.

So the reason has to be related to the low price. There has to be some reason for this low price; non-subscribers are still not opting for this plan.

Now, we will analyse each option choice and eliminate if we got apt reason.

A. It gives us a reason why, even though the low price plans were launched, non-subscribers don't find them helpful.- Keep
B. Not giving us a reason related to non-subscriber. eliminate
C. irrelevant comparison. Nothing about the price issue. eliminate
D. Usage hours again Irrelevant data. Eliminate
E. We are not concerned about ad-free plans. Eliminate.

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truedelulu

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A. CORRECT. These non-subcribers view the ad-supported option as poor value, so even the prices decline, this option is still considered not worth the prices at all.
B. INCORRECT. Mentioning viewers who opt for more expensive, ad-free tiers doesn't help explain why non-subcribers cite price as the main reason for not joining.
C. INCORRECT. Revenue and profit of the platform is irrelevant to why non-subcribers don't join.
D. INCORRECT. Existing subcribers being more active doesn't explain why non-subcribers don't join.
E. INCORRECT. This shows the competition between platforms. We don't have enough information to conclude that the premium options of competing platforms are more worth the prices than the ad-supported ones, and this also doesn't explain why non-subcribers don't join because of the prices.

Bunuel

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Pratyaksh1907

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Paradox
FACT A - Prices are significantly cheaper for ad showing plan than the premium one and is heavily marketed
FACT B - Non-subscribers states high pricing as the reason not to join

These 2 are contradicting facts. Now, we need to find a world in which these 2 facts can co-exist without us making any assumptions.

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A - This states that the ad supported plan is of poor value. Let's take an example, travelling from airplan from kolkata to Delhi costs around $100, now the airline launched a cheaper version of seat for $40 for the same route.
Pros - significantly cheaper price
Cons - the seats are semi-seater, in which you have to stand while having just your back supported on the seat. On top of it these aircrafts are the old and 2nd hand purchased aircrafts which were modified for these seats, therefore, causing lots of inconvenience.

Now, even after getting cheaper price, one would say that $40 is not worth it for this kind of experience, therefore, making me pay more for less quality.
Then, I can conclude than these cheaper seats are still expensive.
B - This doesn't solve the paradox because it doesn't tell us about any of the contradicting facts.
C - The company's benefits of revenue is none of our concern
D - This makes the paradox more complex. If watch time increased in ad supported plan then why non-subscribers say it's still expensive.
E - We are not concerned with content and that too of premium plan.

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Imo A. We are looking to resolve a paradox wherein, potential customer's cited price as a concern for not subscribing to the platforms, however even though the platforms introduced a lower cost option with ads, the number of new subscribers stagnated.. i.e. option A suggests that the perceived value of ad supported viewing plans is poor.
Why others are wrong
B. Focus is on ad sensitive veiwers and not the price sensitive viewers
C. talks about platform revenue which is unrelated
D. talks about exisiting viewers instead of new veiwers
E. Focuses on the premium plan instead of the cost effective/ad supported plan.

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Answer: A

Conclusion: Despite these lower cost options and increased marketing, the number of new subscribers has stagnated.

B: Talks about already existing viewers, not non subscribers. Incorrect.
C: Talks about it from the POV of the streaming platforms- the revenue per user they’ll generate. Irrelevant. Incorrect.
D: Number of hours streamed is irrelevant to our conclusion. Incorrect.
E: Irrelevant as it talks about the competing platforms introducing exclusive content, does not talk about the public reaction to it or doesn’t give us any clue to help us resolve the discrepancy.

A: This option, although doesn’t talk about why the survey takers cite “price” as the main reason for not joining directly, does imply that the non-subscribers associate cheap ad-supported plans with low content quality/ limited access. Thus, despite these plans being cheaper, they tend not to opt for them. Correct.

Bunuel

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harishg

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A - This is our answer. If the prices are already low but still price is cited as the main reason for not joining such tiers, then the perception is associated with the fact that for the content provided in such tiers, the price is still expensive. So there is a frame of reference bought into the context

B - We do not know how many such viewers are there and whether they influence the trend which is seen.

C - revenue and profit contexts are not relevant or useful to resolve the paradox which is based on customer’s point of view

D - we are more concerned about addition of new subscribers to the ad supported tiers, not the hours of streaming by existing subscribers.

E - practices of other competing platforms does not help us explain the paradox which is specific to this platform.

Therefore, Option A

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20 Dec 2025, 01:05

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This is a classical Resolving a Paradox question. There is a discrepancy that even though Ad supported plans are less costly and increased marketing has been carried out for this , non subscribers are still saying price is the main factor for not buying the subscription. We need to resolve the paradox/discrepancy. Let's look at the options one by one :

A. This is correct since it is telling that non subscribers are not finding it value for money as it is associated with low quality , limited access , leading them to dismiss the option. It is helping resolving the paradox.

B. This is incorrect since other expensive options are available which customers can opt for. Not resolving the paradox.

C. Platform's profitability is irrelevant here for expensive and low cost plans and is not helping to resolve the apparent paradox.

D. Number of hours of streaming per week is irrelevant in this context and is not helping resolving the paradox.

E. Introducing content available to premium customers by other platforms does not helping resolving the paradox. Totally irrelevant.

So , A is the correct answer. Easy question.

Bunuel

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bhanu29

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20 Dec 2025, 02:02

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Bunuel

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Premises:
Over the last two years, multiple streaming platforms have introduced ad-supported subscription tiers at lower prices, aiming to attract price-sensitive customers and generate ad revenue.
Despite these lower-cost options and increased marketing, the number of new subscribers has stagnated.
Paradox:
Surprisingly, surveys reveal that many non-subscribers cite price as their main reason for not joining, even though ad-supported plans are significantly cheaper than traditional ones.

We need to resolve the paradox by making sure both the facts can co-exist together, we need to find how that could happen or which answer choice provides an explanation for that.

A. Many non-subscribers associate ad-supported streaming plans with low content quality or limited access, leading them to dismiss these options as poor value\
This choice provides a strong reason why new subscribers say price is the main reason for not joining. If they associate ad-supported plans with low content quality/limited access and dismiss these options. They only consider the non-ad option, which could be associated as expensive. Looks pretty good. Keep.

B. Viewers who are highly sensitive to advertising often opt for more expensive, ad-free tiers rather than ad-supported ones.
Not speaking about non-subscribers so doesn't really resolve the paradox, Eliminate.
C. Ad-supported plans tend to generate lower revenue per user than ad-free plans, making them less profitable for the platform overall.
Not speaking about non-subscribers so doesn't really resolve the paradox,, Eliminate.
D. The average number of hours streamed per week has increased among existing subscribers, particularly in ad-supported tiers.
Not speaking about non-subscribers so doesn't really resolve the paradox,, Eliminate.
E. Several competing platforms have recently introduced exclusive content available only to premium (ad-free) subscribers.
Not speaking about non-subscribers so doesn't really resolve the paradox,, Eliminate.

Correct Answer: A

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20 Dec 2025, 03:21

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Bunuel

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Stimulus summary:

Platforms introduced new cheap tier to attract price sensitive users
Paradox : - still no growth in users, However non subscribers still says that price is still main reason

So we need option which resolve this paradox

Option A - This does the job, because think what if non subscribers don't even consider this new tier as viable option, then they are just considering old traditional tier and for them it still expensive.

our answer is A

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20 Dec 2025, 03:57

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BG: introduced Add. supporting subscription at lower cost -> to attract cost sensitive customer and generate ad-revenue.
conflict: still many non-subscribers cite price as reason for not joining.

A -> could be as customers are looking for value in given price as well.
B -> talking about highly sensitive viewers, our argument is about general viewers.
C -> overall if platform is able to maintain profit is not in scope of argument
D -> how does it affect our argument ? unsure
E -> our argument is about this particular (ad-supported subscription)

hence best option A explains the conflict.

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20 Dec 2025, 04:12

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The passage argues that even after decreasing subscription amount, the no. of subscribers have not increased even though the ad supported subscriptions are very cheap and are less cost incentive than traditional ones. The question asks for reason to justify this contradiction

Analyzing Statements:
1. The non subscribers associate ad supported plans as low quality and limited access which limits their motivation to join. This explains why they would not join. Keep this option
2. Users opting for expensive ad free subscriptions has no relevance with ad supported plans and this will not explain why user subscription have stagnated. Not correct
3. Factual information that ad supported plan will generate less revenue. Not correct
4. It merely explains ad supported subscribers are utilizing subscription more. No relevance with no increase in user base. Not correct.
5. Exclusive content only for premium user will be for high end customers. The larger base are not joining because of high price. So this doesn't explain reason for stagnation. Not correct.

Correct answer is A.

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20 Dec 2025, 04:34

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A
clear winner among allwhich gives the reason for notonboarding the new customersas they cite the subscription isnot worth

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A two notations i found are the platforms offer cheaper ad-support tiers and non-subscribers still cite price as the reason for not joining. This shows that even though the plans are cheaper, people do not see them as worth the cost.

A. for this option non subscribers think ad-support plan means limited access which explains why they dismiss cheaper options as poor value resolving the discrepancy.
B. ad-sensitive viewers choose add free tiers which explains existing subscribers behavior but not non-subscribers.
C. Lower revenue per user is about profitability and not subscriber perception.
D. hours steamed increased for usage and not stagnation in the new sign ups.
E. the competing platforms with exclusive content could affect sign-ups but doesn't explain why price is cited as the barrier.

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A) is correct. Many consumers believe, if is something offered with advertisement, it signals for them that it they have it connected in mind with lower quality and limited access. Therefore, not even a lower price convince consumers to buy it.