This isn't a theoretical economics experiment that can be carried out on a spreadsheet, where you can neatly decouple ad revenue from the calculation of customer lifetime value and spit out a nice round price point for an ad-free experience. This price would need to be revised quarterly at least as to account for ad revenue seasonality and changing subscriber numbers.
> As an isolated event, advertising on Substack is no big deal. But if it becomes ubiquitous, the funding model of the platform could be at risk, forcing Substack to either clamp down on this cottage industry or embrace it. Substack could incorporate advertising into its product, but doing so would contradict the platform's commitment to remaining ad-free.
So, the ads will be tolerated for as long as Substack does not have a native ad platform through which all ads must flow through.