I’d say companies THINK they will make more money. That might be true with big, complex software that can be sold as a service that people will use (Photoshop, Windows, Office etc) or services that offer a lot (like the original version of Netflix or Amazon Prime)
But it’s not true for things you can take or leave. (Such as most mobile apps which now have to really on sales to boost conversion rates from Free tier to subscription).
Then you also have the issue of a fragmented market so even previously successful services like Prime are looking to get more money by adding extra costs (eg Prime Video will have adverts from the summer unless you pay $40 extra per year as a new top up subscription)
It works great when people have it on autopay and are paying without consuming any services, or they make it a giant pain in the ass to unsubscribe and people put it off.
I often wonder how many people are still paying for AOL. I know people that were still paying for it when dsl or cable internet became the better option. I’ll bet people are still paying for it decades later.
Because companies make their best and most reliable income from subscriptions.
Also the reliable income makes them more credit worthy, allowing greater loans from banks and making it possible to grow more.
Tbh it only sucks for the customers
capitalist tradition
I’d say companies THINK they will make more money. That might be true with big, complex software that can be sold as a service that people will use (Photoshop, Windows, Office etc) or services that offer a lot (like the original version of Netflix or Amazon Prime)
But it’s not true for things you can take or leave. (Such as most mobile apps which now have to really on sales to boost conversion rates from Free tier to subscription).
Then you also have the issue of a fragmented market so even previously successful services like Prime are looking to get more money by adding extra costs (eg Prime Video will have adverts from the summer unless you pay $40 extra per year as a new top up subscription)
So it’s more of a theoretical reliable income.
It works great when people have it on autopay and are paying without consuming any services, or they make it a giant pain in the ass to unsubscribe and people put it off.
I often wonder how many people are still paying for AOL. I know people that were still paying for it when dsl or cable internet became the better option. I’ll bet people are still paying for it decades later.