Ultimately micro transactions make less money than subscriptions because of human psychology. When you are charged a flat rate per unit you consume, you tend to

Ultimately micro transactions make less money than subscriptions because of human psychology. When you are charged a flat rate per unit you consume, you tend to consume less because you know the cost is proportionate to your action. They receive immediate positive feedback that their consumption has a negative consequence: cost. The profit in this model is limited by not only the rate of consumption but also for the rate at which the consumer learns not to consume. With the monthly model, the cost per unit gets cheaper as the consumer consumes more of the service experience, allowing the user to “intend” to utilize more than they are paying for but in reality with a majority of the platforms userbase, the opposite happens. This leads to a system where the actual cost calculation is abstracted from the user and they are left with just the question of whether they can afford the maximum cost per time period or not.