Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Nov 1811:00 AM PST
-12:00 PM PST
Join us in a live GMAT practice session and solve 30 challenging GMAT questions with other test takers in timed conditions, covering GMAT Quant, Data Sufficiency, Data Insights, Reading Comprehension, and Critical Reasoning questions.
Nov 2211:00 AM IST
-01:00 PM IST
Do RC/MSR passages scare you? e-GMAT is conducting a masterclass to help you learn – Learn effective reading strategies Tackle difficult RC & MSR with confidence Excel in timed test environment- Nov 23
11:00 AM IST
-01:00 PM IST
Attend this free GMAT Algebra Webinar and learn how to master the most challenging Inequalities and Absolute Value problems with ease. 
Nov 2510:00 AM EST
-11:00 AM EST
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors.
said.tojiboev
PhD Forum Moderator
Joined: 04 Oct 2018
Last visit: 20 Oct 2025
Posts: 65
Given Kudos: 10
Location: Uzbekistan
Concentration: Strategy, General Management
Schools: Stanford '27
GPA: 4.49
WE:Project Management (Education)
18 Jul 2024, 05:05
Kudos
Bookmarks
Bunuel
(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
- This suggests that the primary motivation for choosing the ad-free tier is to avoid ads. If true, this means that restricting popular content to the ad-free tier might not significantly affect the choices of those who are already primarily motivated by the absence of ads.
(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.
- This is critical because it underpins the company's strategy. If popular content is a significant draw, then restricting it to the ad-free tier could effectively persuade users to subscribe to the more expensive plan.
(C) The reduced cost of the ad-supported tier will not significantly increase the total number of subscribers to the streaming service.
- This implies that the introduction of the cheaper ad-supported tier won't lead to a large influx of new subscribers, suggesting that the market is already saturated or that the potential new subscribers aren't significantly price-sensitive.
(D) Most current subscribers to the ad-supported tier do not consider the price difference between the two tiers to be prohibitively large.
- If true, this means that users of the ad-supported tier might be willing to upgrade to the ad-free tier for better content, as they do not see the price difference as a major barrier.
(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
- This is about competitive strategy. If other streaming services follow a similar model, the company's plan to restrict popular content might seem standard and acceptable to users. However, if competitors offer premium content at lower prices, users might switch to those services.
18 Jul 2024, 05:14
Kudos
Bookmarks
Bunuel
(A) Subscribers primarily choose the ad-free tier to avoid advertisements, not necessarily for exclusive content.
- This is not the assumption the company is making. If the company's plan hinges on restricting popular content to retain ad-free tier subscribers, it assumes that exclusive content is important to subscribers, not just the absence of ads.
(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 the correct assumption. The company's strategy to restrict access to popular original content for ad-free subscribers assumes that this content will influence users' decisions and keep them subscribed to the more expensive 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 not relevant to the company's assumption. The focus is on retaining subscribers in the ad-free tier, not on the 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 is not what the company's plan assumes. The company is concerned with preventing a decline in ad-free tier subscriptions by making popular content exclusive to that tier, not with the perceptions of ad-supported tier subscribers.
(E) Other streaming services do not offer their premium content to subscribers of their lower-priced, ad-supported plans.
- While this could be a competitive consideration, it is not the primary assumption in the company's plan. The company is focused on the impact of its own content strategy, not on the policies of other streaming services.
18 Jul 2024, 05:22
Kudos
Bookmarks
Applying Assumption negation technique on B will weaken the conclusion. E is close but it talks about other streaming services. Rest (A, C and D) are irrelevant.
