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

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V40-14

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Bunuel

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19 Dec 2025, 10:00

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Bunuel

GMAT Club Official Solution:

A. CORRECT. 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 explains the discrepancy. People say “price” is the reason, but what they really mean is “price for what I’m getting.” If they think the cheaper plan = low-quality content, then it doesn’t feel like a bargain even if it’s cheaper. So they still cite price, but they’re really rejecting perceived value.

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

This explains why some people choose the pricier plan, but it doesn’t explain why non-subscribers (people who aren’t subscribing at all) still say price is the barrier. It’s about behavior of existing subscribers, not the non-subscribers in the question.

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

This is about the platform’s revenue, not the non-subscribers’ behavior. It might explain why platforms don’t push ad-supported plans too hard, but it does not explain the discrepancy between cheaper price and stagnating sign-ups.

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

This talks about what current subscribers are doing, not why non-subscribers aren’t joining. More hours streamed doesn’t explain why new sign-ups stagnated.

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

This explains why some people might prefer premium content, but again, these are non-subscribers citing price as their reason. It doesn’t explain why they’re not taking the cheaper plan; it just explains a lure for higher-tier subscribers.

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19 Dec 2025, 09:05

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The discripancy is that people say price keeps them from subscribing even though cheaper and supported plan exist. (A) explains this by showing that these people do not see add supported plans as real alternatives because they belive the quality or access is poor

B. This explains why some people choose expensive plans, not what is needed
C. Platform profitability does not explain subscriber stagnation
D. Existing subscriber behavior does not explain why new are not joining
E. Exclusive premium content explains upgrading behavior not refusal to subscribe

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19 Dec 2025, 09:46

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Bunuel

a) very well explains the discrepency, sincce customer think that subscription of low quality, alothough the price is lower, they may feel it is no justifed to the claue it provied.
b) those viewres are not under consideration, who opt for expensive.
c) this is not relevant to arguement
d) stream hours/ week is not relevant
e) competitiors doing anything does not affect the arguement.

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19 Dec 2025, 09:54

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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.

last 2 years multiple streaming platforms introduced ad supported subscriptions at lower prices... aim to attract price sensitive customers + generate ad revenue..
result is that number of subscribers has stagnated.. price as main reason..

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
this is a solid reason why subcribers are not joining as they feel that offering is of low content quality or limited access..

B. Viewers who are highly sensitive to advertising often opt for more expensive, ad-free tiers rather than ad-supported ones.
this is not valid as the pricing is low and for specific audience who is price sensitive

C. Ad-supported plans tend to generate lower revenue per user than ad-free plans, making them less profitable for the platform overall.
revenue generation is not key idea for this price reduction plans..

D. The average number of hours streamed per week has increased among existing subscribers, particularly in ad-supported tiers.
not relevant to argument in discussion not does not help to resolve discrepancy..

E. Several competing platforms have recently introduced exclusive content available only to premium (ad-free) subscribers.
this is an alternate reasoning to weaken but this does not support much to discrepancy cited

OPTION A is correct

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19 Dec 2025, 10:06

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Paradox: Price is low but users are still not subscribing to ad-supported tier and mention the price to be a concern. This suggests they don't think the ad supported tier to be worth spending and are still considering the premium subscription, which is expensive.

A supports this, it suggests given consumers perceive it as low quality and poor value offering
B - this talks about viewers sensitive to ads, which is not a concern. we are talking about viewers sensitive to pricing
C - lower rev is irrelevant for the users
D - avg hours streamed is irrelevant to this argument
E - other platforms providing exclusive content premium kind of only further deepens the paradox

Bunuel

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19 Dec 2025, 10:31

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The discrepancy is: even with cheaper plans (but with ads) to attract price sensitive people, new subscriptions have not increased, and people still say that price is their main reason for not subscribing.

To solve the discrepancy, we need to find a reason why people don't subscribe to the option with the lower price.
A. correct. This explains why people don't subscribe even with the lower price, it's because they don't even consider the lower price plans as a real option. This makes sense because, if they assume it's low quality, then they don't even consider those options and only consider the higher priced plans (and therefore still complain about price, even though the other options with ads exist)
B. incorrect. The mention of viewers implies that this statement is about people that are already subscribed and also this statement is not about price sensitive people.
C. Incorrect. How much money the platform makes is irrelevant to potential subscribers.
D. incorrect the discrepancy described in the report is about nonsubscribers, not people that I already subscribe to the platform and how much they use it.
E. incorrect. This does not resolve the discrepancy since this information is irrelevant to why people still mention price as the main reason for not subscribing.

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19 Dec 2025, 10:36

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Bunuel

Puzzle: Price-sensitive people say price is the barrier, yet cheaper ad-supported plans exist, and subscription still isn't rising.
So the solution must explain why those people don't treat ad-supported plans as real price solutions.

OPTION A: PERFECT. If non-subscribers believe ad-supported plans mean worse content or restricted access, they don't subscribe.
OPTION B: Explain the behavior of people who subscribe.
OPTION C: Platform probability is not equal to subscriber stagnation.
OPTION D: Talks about existing users, not non-subscribers.
OPTION E: Explain premium appeal, not price complaint.

Hence, OPTION A.

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19 Dec 2025, 10:47

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Bunuel

Here's my reasoning on the answers:

A: This explains why people are still saying "price" is the problem. They think that the only reasonable good option is the higher priced ad-free plan, so in their mind the cheaper ad-supported tier doesn't count as a real alternative. Correct.

B: This talks about the existing ad-adverse customers, not non-subscribers. Incorrect

C: This discusses about the platforms profitability, and not the subscribers decision. Incorrect

D: This talks about the behavior of the current subscribers and not why the new ones aren't joining. Incorrect

E: This explains the shifts among premium users or between platforms, not why price-sensitive non-subscribers ignore cheaper ad-supported options. Incorrect

Option A

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Ad supported subs at lower price to attract price sensitive market. Still stagnation in new subs. Survey reveals price as reason.

A. Correct. As the new ad supported model is valued as poor value. People still consider the actual subs to be the ad free subs which is higher priced. They do not consider the ad supported subs due to poor quality and value and dismiss this as an option.

B. Incorrect. Status Quo. No change.

C. Incorrect. The argument does not mention revenue. Misleading.

D. Incorrect. Avg hours not pertinent in this question.

E. Incorrect. In general streaming services have been considered. Not any particular one.

Bunuel

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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. While price is the primary factor, it is not the only factor. Non-subscribers are not ready for watch quality compromises through ads at the low price.
B. Viewers who are highly sensitive to advertising often opt for more expensive, ad-free tiers rather than ad-supported ones. We are not concerned about the section who takes the high-cost subscription. Argument is about the section who doesn't subscribe bcoz of price.
C. Ad-supported plans tend to generate lower revenue per user than ad-free plans, making them less profitable for the platform overall. How the schemes are beneficial to the platforms is out of scope.
D. The average number of hours streamed per week has increased among existing subscribers, particularly in ad-supported tiers.
This suggests that watch time of each customer increased. However, argument is about number of new customers.
E. Several competing platforms have recently introduced exclusive content available only to premium (ad-free) subscribers. Argument is about who doesn't want to pay high subscription fees & not about premium account holders.

Ans A

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A. Many non-suscribers associate ad supported streaming plans with low content quality or limited access, leading them to dismiss these options as poor value......if non subscribers believe ad supported plans means worse content, they effectively dont count those plans as viable. Hence, they still percieve streaming as too expensive even if a chraper tier exists........Answer

B. This option does jot expalin why the non subscribers aren’t joining the cheap tiers.....No
C. It does not explain the customers decision to subscribe or not subscribe.......No
D. This does not explain the stagnation of new users, only describes the people who have already have the service......No
E. If exclusive content is only for premium tiers, it might explain why poeple dont buy premium but it still doesnt exokain the reason why people dont buy cheaper ad-supported tiers.....No

A

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19 Dec 2025, 12:05

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Solution:

1. Correct- As this option descibes that why non-subscribers ignore the ad-supported streaming plans as they find them to be of poor quality content. This basically resolves the paradox that, despite the ad-supported plans being cheaper, many non-subscribers are not interested in them.

2. Incorrect- This basically tells us why viewers are more interested in ad-free tiers rather than ad-supported ones.

3. Incorrect- This choice explains why ad-supported plans generate more revenue than ad-free plans.

4. Incorrect- It doesn't resolve the paradox.

5. Incorrect- This choice doesn't explain why users are not interested in ad-supported, cheaper plans.

Hence, Option A

Bunuel

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19 Dec 2025, 12:07

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option A, because even though with as the subscription amount is less but it is not value for money to user.

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19 Dec 2025, 12:08

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Bunuel

Let's understand the argument first.

S1: Streaming sites are making ad-supported lower subscription tiers to attract customers.
S2: Plan hasn't worked.
S3: Potential new customers say that price is the problem, despite these lower tiers.

We're being asked to resolve this paradox.

Option A: Non-subscribers think ad subscriptions are poor value, which would mean they need the full subscription for good value. This makes perfect sense and resolves the apparent paradox as to why there's less subscribers. Let's hold onto this.
Option B: Explains a portion of the paradox but not the entirety of it. Eliminate.
Option C: Profitability isn't the question here. Eliminate.
Option D: Hours streamed isn't the question here. Eliminate.
Option E: Competing platforms making content that price-sensitive customers probably wouldn't care for doesn't help. Eliminate.

Therefore A is the answer.

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19 Dec 2025, 12:28

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The correct assumption that supports the passage is statement A

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19 Dec 2025, 12:33

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Bunuel

here discrepancy is that (A) new viewers want lower cost subscription but (B)when given lower cost ad-supported sub., even then people are subscribing....what could be the reason...lets see
1- so this says the ads ,poor quality content & limited access in the plan actually reduce the actual value of the plan than at what its actually being offered ,so it seemed to be expensive to people. That's the reason viewers are not subscribing - Bingo- correct answer
2-Viewers here might mean old subscriber and we are not interested in them, even if the viewers are not old subscribers we are interested in people not joining and not in people opting for higher value subscription, this doesn't resolve our discrepancy-OUT
3-Overall profit will not resolve the discrepancy, irrelevant- OUT
4-Avg no. of hours is irrelevant to the question in hand-OUT
5- We are interested in low cost subscription, that will resolve our discrepancy, irrelevant- OUT

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19 Dec 2025, 12:41

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A. Correct. This choice gives us a perfect explanation why the non-subscribers are not buying into the new plan hence the stagnation
B. This talks about a different class of viewers the highly sensitive ones yet one focus is price-sensitive ones
C. We do not care about the profitability to the company but about the low uptake among the target audience
D. This is quite irrelevant because we do not care about streaming hours for the existing customers
E. Other platforms do not matter here because we are interested in this particular platform
Ans A

Bunuel

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19 Dec 2025, 12:47

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P1->last 2 yrs. MSP's--have supported a business strategy(ad supported subscriptions at lower prices)--to increase customer base and revenue.
Discrepancy P2->despite above and increased marketing ---new subscribers stagnated.
P3->Surveys reveal that many non subscribers cite price as main reason to not subscribe, even though strategy above is cheaper than traditional.
need to find an option that help resolve the above discrepancy ??
The argument under discussion is about add supported subscribers---so we can strike out B & E as discuss premium or add free subscribers.
C discusses the low revenue generation from add supported strategy--however we are worried about the stagnated subscribers---so out
D discusses about the no of increased streaming hours among the existing subscribers, no effect on the addition of the new subscribers---so out
A becomes the best choice. let's also elaborate A's win.
Discussed platforms should not worry about the non subscribers who still think the low cost subscriptions are costlier, since if on further reduction in the prices of the add supported ones subscribers increase in number, but may affect overall revenue generated (adversely), which is the main motto of the process.
so many non subscribers who dismiss these on account of poor content value are the ones which are resulting in the stagnation of subscribers, not on the price.
so A IMO

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19 Dec 2025, 12:53

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Bunuel