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? The COGS for most software approaches 0 pretty rapidly, so it's just as arbitrary that Spotify charges $10/month for a premium subscription. The price of sof
by IronKettle 9y ago
? The COGS for most software approaches 0 pretty rapidly, so it's just as arbitrary that Spotify charges $10/month for a premium subscription.
The price of software (and any good, theoretically) is rarely priced based on expenses.
- pjc50 9y agoBoth Spotify and Netflix have to pay a large chunk of that to the copyright holders.
- 013a 9y agoThe cost of media services isn't mostly infrastructure; its licensing. When you play a song, they have to pay a certain amount to the rights holders. So they need to figure out the average listening habits across all their listeners then price their subscriptions so that they can pay licensing fees and make profit. Tinder has no licensing to pay.