In addition to chrismeller’s reply, I’d add one other consideration: some, probably a lot, of current 1 TB customers would be satisfied with 100 GB. If Dropbox

In addition to chrismeller’s reply, I’d add one other consideration: some, probably a lot, of current 1 TB customers would be satisfied with 100 GB. If Dropbox offered, say, a $5/mo plan with 100 GB, it’s possible that many existing $10+ customers would downgrade, so although they’d make some money from new paying users, they’d also make less from existing paying users. Here’s more on this tradeoff: https://en.wikipedia.org/wiki/Cannibalization_(marketing) https://en.wikipedia.org/wiki/Cannibalization_(marketing). And on substitute goods, as a 100 GB plan would be for some 1 TB customers: https://en.wikipedia.org/wiki/Substitute_good https://en.wikipedia.org/wiki/Substitute_good In a sense, it’s a linear programming problem: finding the number of customers of each plan (current or hypothetical) which maximizes the resulting profit. (Worth noting that if Dropbox was losing a ton - say, 20%/year - of customers to a cheaper competitor and they had enough margin to make a more competitive plan, they’d probably do so. That doesn’t seem to be the case here, though.)