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505-555 Level|   Assumption|         
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 13:47
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Bunuel
­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
 
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­
C -    This does not address their concern of potential decline in customers from the ad-free tier.

D -   The plan is put in place to retain the subscibers of the ad-free tier. This point does not address those customers

E -   The passage does not address other streaming services.


So the options are shortlisted to A and B

Using Assumption Negation Technique is helpful to solve this question (provided my answer is right). Negate the assumption and see if the plan collapses :

A  -   Subscribers primarily choose the ad-free tier for exclusive content, not to avoid ads.
This strengthens the plan. 

B -    The availability of popular original content will not be a decisive factor for customers when choosing between the tiers. 
If the customers are happy watching the shows availabe in the cheaper tier - then the company will definitely see a decline in subscribers to the ad-free tier. This weakens the plan.

OPTION B

 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 14:06
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The company's plan assumes that:
ANS LETTER B

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
INCORRECT, if this the case, even for a small fee people would not be interested in changing from ad-free tier to ad-supported tier.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
CORRECT
This will explain why the company thought as an strategy to restrict access to its most popular original content exclusively to subscribers of the ad-free tier. This will help to keep ad-free tiers users at least at the same level, because if people overweight content rather than pricing, then people will think twice before choosing ad-supported due to the lack of popular original content.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
INCORRECT
The streaming company is concern about the decline in ad-free subscriptions, not if this new pricing tier will increase the total users of the company.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
INCORRECT
This will weaken the company's reasoning because if price difference is not extremely large for the majority of ad-supported users, then ad-supported members could change to ad-free tier, thus increasing subscriptions of ad-free tier.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
INCORRECT
This is irrelevant because the concern of the streaming company is the decline of ad-free subscriptions by launching a new lo pricing tier. Even if other streaming companies refrain content to low-priced users, we do not know if this leading streaming service company is aware of that and even also the impact of this strategy in those streaming services.­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 14:31
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Bunuel
­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.



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­The correct answer is:

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

It directly addresses this assumption by stating that the availability of popular original content will be a decisive factor in users' choice between the two tiers.

Let's briefly consider why the other options are not correct:

A: This option discusses why subscribers might choose the ad-free tier but does not directly relate to the assumption that restricting popular content will retain subscribers in that tier.
  
C: This option discusses the impact of the reduced cost of the ad-supported tier on total subscribers, which is not directly related to the assumption about retaining subscribers in the ad-free tier.
  
D: This option discusses the perception of price difference by current subscribers of the ad-supported tier, which is not directly relevant to the assumption about retaining subscribers in the ad-free tier.
  
E: This option discusses the practices of other streaming services, which does not directly address the assumption about the impact of restricting popular content on subscriber retention in the ad-free tier.

 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 14:36
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Bunuel
­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.



­
 


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­Let's take a look at each statement for the plan that plans to restrict access to its most popular content to subscribers of the ad-free tier to mitigate the potential decline in subs for the ad-supported tier:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

-> This is not the right answer. It doesn't align with the subscibers caring for exclusive content when it comes to choosing plans.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

-> This is correct. The plan relies on the idea that users will stay with the ad-free tier because it will have popular content they are looking for (also, if users did not consider the exclusive content important, they might switch to the ad-supported tier).

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

-> This is unrelated to why users would choose one tier over another based on content availability.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

-> This does not directly relate to the plan's effectiveness in retaining subscribers for the ad-free tier by offering exclusive content.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans. 

-> This is unrelated to the company's plan as it has to do with other companies and what they do.

Therefore, the answer is B.­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 15:25
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Bunuel
­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.



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Company has introduced ­New pricing tier that allows users to watch shows and movies with advertisements at reduced cost.

GoaL: To mitigate this concern (this cheaper ad supported tier may lead to significant decline in subscriptions to its more expensive ad-free service)
Plan: Restrict access to its most popular original content exclusively to subscribers of the ad-free tier

assumption: by restricting to its most popular original content exclusively to ad-free tier subscribers people will continue to opt for this and it may not lead to significant decline to its more expensive ad-free service. 

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
-- this raises doubt on the plan to mitigate the concern and hence not an assumption

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
-- If it is a decisive factor for many users, then restricting may work. So lets keep it
Negation test - it is not a decisive factor so introducing the plan may not work and company may incur significant decline
if it is a decisive factor, introducing th plan may work and help mitigate concern that it will not lead to significant decline

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
-- argument is not concerned about increase in total number of subscribers to streaming service rather significant decline in subscriptions to more expensive ad-free service. hence out

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
-- argument does not depend on whether most subscribers to ad-supported tier consider price difference as prohibitely large. hence out

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
-- It talks about other streaming services which is not the scope of argument and does not touch plan. so out

B is the answer
 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 15:27
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­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.No the company assumes that subscibers would choose ad-free for the exclusive content because given the choice bw ad-free and ad-with, the company suppose, people would go with ad-with with cheaper rate.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.The company did not assume this, it is clear that the company thinks that people would jump to expensive one if content is exclusive

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.Even if it would increase, it might not for more expensive ad-free services.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.Correct. The company assumes that the price difference is not prohibitively large  for most current subscriber to ad-supported tier.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.We have no concern for the other streaming services

ANS=D
 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 16:31
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­(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
INCORRECT. The company assumes just the opposite, that subscribers primarily choose the ad-free tier for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
CORRECT. The decisive factor for many users is the exclusive content.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
INCORRECT. The company is concerned about the decreasing of ad-free tier users. Total number of subscribers doesn't matter in the plan.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
INCORRECT. This would increase the number of ad-free tier users. But the plan tries to avoid decreasing the number of current ad-free tier users.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
INCORRECT. What other streaming services do doesn't matter here because we don't know their results.


IMO B
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 16:59
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(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
Wrong this can't be the author's assumption, if so they wouldn't suggest to implement exclusive content to attract more client to the ad-free subscription.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
Right this is the assumption of the author, as the suggested strategy to attract subscribers to the ad-free offer is to include exclusively in this offer popular original content. So this must be a decisive factor for the users according to the author.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
Wrong the total number of the subscribers is not a concern in the author's argument.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
Wrong if this is an assumption of the author, then the author shouldn't even be concerned about a potential decline in subscriptions for the ad-free tier.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
Wrong the strategy of other streaming services is irrelevant to the reasoning of the author and the proposed strategy.­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 18:05
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­This is an assumption question, so we need to connect the evidence with the conclusion.

Conclusion --> the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.
Prediction: the people want the most popular content

A --> is the wrong wording, trap answer
B --> correct, because it matches that people consider the popular content when choosing
C --> irrelevant
D --> irrelevant
E --> irrelevant

Answer is B
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 18:39
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Since the streaming service is denying its ad-tier subscribers access to their secret sauce in an attempt to get them to subscribe to their services, option 2 makes the most sense in this situation. Once a subscriber is hooked, they will desire additional content that is only available through the streaming service, giving the business the leverage to attract more viewers to the ad-free tier.
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 19:12
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­(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content--It tells that avoiding ads is the primary motivation for choosing the ad-free tier. However, the plan focuses on the importance of exclusive content to retain subscribers, Irrelevant(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers--If subscribers value the exclusive content highly, they will be more likely to remain in or switch to the ad-free tier to access it. This assumption directly supports the effectiveness of the plan.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.--it addresses the overall subscriber base, but it does not directly relate to the choice between tiers based on exclusive content.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large--It tells to the perception of price differences but does not address the impact of exclusive content on subscription choices.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.--It involves market comparison but does not directly affect the company's assumption about user behavior regarding exclusive content.

So ans is (B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 19:17
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Bunuel
­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.



­
 


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­
(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
-if this is scenario then plan would not work. INCORRECT
(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
- If this is scenario then the subscribers who are lovers for popular original content would not shift for new subscription . CORRECT
(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
-Negate this ,it will not affect conclusion .INCORRECT
(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
-Negate this ,it will not affect conclusion .INCORRECT
(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
-Negate this ,it will not affect conclusion .INCORRECT

ANS B
 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 20:29
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­To identify the assumption behind the company's plan, we need to determine what must be true for the plan to be effective in preventing a significant decline in subscriptions to the more expensive, ad-free service. 

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content. - This does not directly support the plan's effectiveness. If subscribers are not motivated by exclusive content, restricting it wouldn't help retain them. A is out. 

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers. - This directly supports the plan. If users consider exclusive content important, they are more likely to stay with or choose the ad-free tier to access that content. B looks good. 

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service. - This addresses overall subscriber growth rather than the retention of the ad-free tier. It's not directly relevant to the company's plan. We can rule out C. 

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large. - This does not directly support the plan. It concerns the perception of price difference rather than the impact of restricted content access. D is out. 

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans. - While this might be relevant in a competitive analysis, it doesn't directly support the assumption that restricting popular content will retain ad-free subscribers. E is out. 

The most directly relevant assumption is:

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

This assumption underpins the company's plan by suggesting that exclusive access to popular content will influence users' decisions to stay with or choose the ad-free tier despite its higher cost.­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 20:43
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­(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
This is not coherent with the passage motive.  
(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
Yes, if the availability of popular original content will NOT be a decisive factor for many users when choosing between the ad-supported and ad-free tiers, the plan will certainly fail. Required assumption. 
(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
This is irrelevant to the plan - the concern is cannibalization. 

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
This is not a required assumption at all in the argument. 
(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
We're not concerned with competing services in the argument. 
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 21:34
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­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:
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(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
- This is not presumed, as we are talking about the higher tier's subscriber hit.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
- This is directly presumed. If we negate this, it weakens the conclusion.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
- The total number of subscribers aren't in question.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
- This is not what the argument presumes.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
- This is irrelevant. We don't care about others.
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 21:50
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­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers. [[b]Let's negate this option: The availability of popular original content will NOT be a decisive factor for many users when choosing between the ad-supported and ad-free tiers. This completely destroys the argument because if the users won't care about the availability of popular original content then the company still might experience a significant decline in subscriptions to its more expensive, ad-free service]

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 22:00
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(A) NOT CORRECT. Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

The company assumes the exact opposite of this statement.

(B) CORRECT. The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

Popular original content will be decisive factor for user to prefer ad-free tier over ad-supported tier

(C) NOT CORRECT. The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

Increase in the subscribers for ad-supported tier is not a concern of this plan. But it is to increase ad-free tier subscribers

(D) NOT CORRECT. Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

Though the price difference is small, still may users may move to ad-supported tier. Also it does not affect the proposed plan significantly

(E) NOT CORRECT. Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.

What other streaming services do is irrelevant here.

Answer is B
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 22:30
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In order to answer this question, we must define what an assumption is. An assumption is the unstated link between the premise and the conclusion. So let us find these within the text.

Premise
"The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service."

Conclusion
"To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier." 

We can see that there is quite a big jump in reasoning between the two statements:

That cheaper ad-supported tier might lead to significant decline in subscriptions therefore, company plans to restrict access to popular original content. 

So the assumption is that people mainly pay for a subscription to watch popular original content, even though there are other features like lack of ads. 

Let's see the answer choices and see if any fit this assumption. 

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

This answer choice undermines the assumption and is the opposite of what the company's plan assumes.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

This answer is most similar to our assumption. The company made its plan on the assumption that popular original content is the main reason people get a subscription. If people only cared about ad-free and not about popular original content, then there would be no need to mitigate the situation. 

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

Maybe it does, maybe it doesn't. The assumption was made to account for and limit the potential loss in subscribers due to the ad-supported being available. Nothing about increasing total number of subscribers.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

This doesn't say much about the assumption and does not explore what the sentiment regarding popular original content is.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.

We are not concerned with other streaming services. We are here to find the assumption that the company's plan relies on.

Therefore the answer is B
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­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.



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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 22:47
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­A leading streaming service company has introduced a new pricing tier that allows users to watch shows and movies with advertisements at a reduced cost. The company is concerned that this cheaper ad-supported tier might lead to a significant decline in subscriptions to its more expensive, ad-free service. To mitigate this, the company plans to restrict access to its most popular original content exclusively to subscribers of the ad-free tier.

The company's plan assumes that:

Solution: The company's plan to restrict access to its most popular original content exclusively to subscribers of the ad-free tier is based on an assumption about user behavior and preferences. Let's examine each option to figure out the assumption made in the argument.

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
Explanation: This assumption would undermine the company's plan if it were true. The plan relies on the exclusive content being the key motivator for subscribers to choose the ad-free tier. If avoiding ads is the primary reason, restricting content might not have the desired effect. INCORRECT

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers.
Explanation: This assumption directly supports the company's plan. If we negate this option i.e. "The availability of popular original content will NOT be a decisive factor for many users when choosing between the ad-supported and ad-free tiers", then the conclusion breaks. CORRECT

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
Explanation: This assumption is less directly related to the effectiveness of the content restriction strategy. It deals more with overall subscriber growth rather than the preference between the tiers. INCORRECT

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
Explanation: This assumption is related to price sensitivity but does not directly address the effectiveness of content restriction as a motivator for choosing the ad-free tier. INCORRECT

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
Explanation: This assumption is about the competitive landscape but does not directly impact the specific strategy of using content exclusivity to drive ad-free tier subscriptions. INCORRECT

The right answer is Option B­
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GMAT Club Olympics 2024 (Day 8): A leading streaming service company 17 Jul 2024, 22:53
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The company's concern is the cheaper ad-supported subscription might lead to a significant decline in subscriptions to its ad-free service.
To mitigate this, the company plans to restrict access to its most popular original content.

The assumption should relate access to original content with customer's demand of subscription.

Let's analyse the options:

(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content. - This cant be the assumption, if true, this goes against the plan.

(B) The availability of popular original content will be a decisive factor for many users when choosing between the ad-supported and ad-free tiers. - This is very much in line with the thinking that we analysed.

(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service. - Not relevant , the concern is not about less increase in subscriptions.

(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large. - If this was true the solution would have been unnecessary.

(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans. - Not relevant as no comparison with other players provided in the passage.

Correct Option: B

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