In the Pandora case, a higher ad-load leads listeners to red…
In the Pandora case, a higher ad-load leads listeners to reduce their ad-supported listening time. Some listeners leave, some listen less, and some become subscribers. But we lack some numbers on the magnitudes of these effects. So, assume that at the status quo, a 5% increase in ad-load does not change total ad-revenue (meaning, the higher ad-load exactly cancels out the reduced ad-supported listening time). True/False: Increasing ad-load by 5% will increase profits.