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People are bad judges of value. Companies push subscriptions because people always over-susbcribe for the value they get. But even if they don't, just by virtue
by pishpash 8y ago
People are bad judges of value. Companies push subscriptions because people always over-susbcribe for the value they get. But even if they don't, just by virtue of a prepaid subscription, the sunk cost makes people consume more than they would if it were a metered service.
In fact the addition issue is tightly related to the subscription model. For Google and Facebook it's because the "subscription" is free. For Netflix and other consumptions it's because it's paid upfront. If every piece of content required a conscious decision of paying, people would automatically value their consumption properly and stop using.
- johnny22 8y agoI never paid for shows on itunes or wherever that had per episode prices, because I could never justify the cost. That's why I use subscription services. For the price of say 5 episodes at current prices, I end up with more than 3-4 episodes of value on Netflix.