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A lot of times what people dont realize when they get sticker shock from these recurring revenue models is what the price of the software would have been if the

A lot of times what people dont realize when they get sticker shock from these recurring revenue models is what the price of the software would have been if the company wasn't willing to accept a future cashflow instead of the full discounted present value. I think people don't really realize how expensive life has gotten because most of us dont pay full price for anything anymore. Even the idea of $12 a month for a heated seat ruffles some feathers, but many balk at the idea of paying $1200[1] upfront for a heated seat. Perhaps because they don't have $1200, but they do have a (presumed) income stream of $12 a month. Ultimately I presume the internal rates of returns really benefit the companies (eg, maybe discounted using credit card rates) [1]: (made up number to illustrate the point)

skippyboxedhero 4y ago
The heated seat comparison is pointless. The reason why this system exists is because company costs to run these products are largely ongoing. With a physical product, they release, do some updates, and then eventually release a new version to keep it going (this still largely exists with games, P2W games are the only ones who created a business model from free...and people also hate that passionately). With a digital product, you need servers which is an ongoing cost (that is sometimes a large component of overall cost) and you just keep releasing. It is actually a better system. There is no logical reason to pay monthly for heated seats (that product is a just a loan, it isn't a subscription). There are logical reasons to pay monthly for software (when things were physical, you had buy new software every couple of years...that is how the nice things appeared, stuff today is crazy, crazy cheap...monthly models definitely de-risk the financial model but prices haven't and aren't going up).

skippyboxedhero 4y ago

The heated seat comparison is pointless. The reason why this system exists is because company costs to run these products are largely ongoing. With a physical product, they release, do some updates, and then eventually release a new version to keep it going (this still largely exists with games, P2W games are the only ones who created a business model from free...and people also hate that passionately). With a digital product, you need servers which is an ongoing cost (that is sometimes a large component of overall cost) and you just keep releasing. It is actually a better system. There is no logical reason to pay monthly for heated seats (that product is a just a loan, it isn't a subscription). There are logical reasons to pay monthly for software (when things were physical, you had buy new software every couple of years...that is how the nice things appeared, stuff today is crazy, crazy cheap...monthly models definitely de-risk the financial model but prices haven't and aren't going up).