Demand cannabalization

In addition to potential demand cannibalization and boost in network effects, in the context of paid products, seeding may induce a separate effect on the paying customers. If some customers are charged for the product, then seeding implies price discrimination in the market: seeded customers pay less (zero) compared to unseeded individuals who end up buying the product. If seeding is extensive and paying customers observe it, then they might consider the price scheme unfair.