The problem is the higher-level decision makers having fully internalized "never leave money on the table". If there is a premium paid product, it will later have advertising added to it, and results prioritized, because that is an additional source of revenue. Never mind that it defeats the entire purpose of using the premium in the first place.
The second level is that customers know that this will happen, and don't bother looking into the more expensive options. Why bother paying a premium when you get the same poor experience out of it?
The third level happens when market research shows that people are not willing to pay for a premium product. This gets erroneously attributed to people preferring cheap ad-ridden junk, rather than being a response to markets producing expensive ad-ridden junk. (Side note, I despise the concept of "revealed preferences" for this reason.)
Your right in that there are people who have near sighted foolish thoughts like that. The truly impressive folks, if they’re around, will see past that kind of nonsense. Someone who doesn’t subscribe to another’s dogma in Steve Job’s words.
The second level is that customers know that this will happen, and don't bother looking into the more expensive options. Why bother paying a premium when you get the same poor experience out of it?
The third level happens when market research shows that people are not willing to pay for a premium product. This gets erroneously attributed to people preferring cheap ad-ridden junk, rather than being a response to markets producing expensive ad-ridden junk. (Side note, I despise the concept of "revealed preferences" for this reason.)