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Sorry, I thought you'd understand I was talking about marginal cost. Yes, I understand that software companies have non-marginal expenses. And yes, gyms pay re
by wpietri 4y ago
Sorry, I thought you'd understand I was talking about marginal cost. Yes, I understand that software companies have non-marginal expenses. And yes, gyms pay rent, but I clearly said I was talking about "service/software subscriptions".
I also disagree that's the point of subscription models. If I'm on a month-to-month subscription, there's no legal guarantee the revenue is predictable more than 30 days out. That would be just as true if auto-suspend were required for non-use.
- tomnipotent 4y ago> I understand that software companies have non-marginal expenses. For most subscription businesses and SaaS companies, non-marginal costs are most of the costs. The pennies Netflix saves if you don't stream during the month are a pittance compared to other SG&A expenses like headcount and content production. > I also disagree that's the point of subscription models. What do you think the point is? Why would Jetbrain's move to a subscription model? Why does Spotify stream music and not sell tracks and albums? A subscription model is a fundamentally different business than one offering standard transactional sales.