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This is pretty much how MoviePass went bankrupt. The unifying gist is, the business model depends on acquiring customers that don't use the advertised service.
by tadfisher 4y ago
This is pretty much how MoviePass went bankrupt. The unifying gist is, the business model depends on acquiring customers that don't use the advertised service. But customers are smart and want to maximize the value they receive for their money.
Eventually, you either get an ISP-like situation where everyone has caps on their "unlimited" service and there is no room to disrupt the market, or you get MoviePass.
There is not going to be a free-market solution to this problem, because no service with defined limits will be able to compete with the "unlimited" service at the same price point, and there are no consequences to simply dropping the expensive customers.