4 ms·
> why is that? It is essentially for licensing and DRM reasons. It's been around for years in B2B stuff. But as it turns out it works for B2C stuff too, and yo
by SkaBunkel 4y ago
> why is that?
It is essentially for licensing and DRM reasons. It's been around for years in B2B stuff. But as it turns out it works for B2C stuff too, and you can actually charge more by charging less.
Let's look at it by using an example. Many people see a 9$ fee as something they can afford right now, and the company sees it as a 108$ per year, per person, payment for the service. Even if they loose 30% of that in operating costs, it is still 75.6$. If 1000 people pay, you have 75 600$ in annual reoccurring income. If you have to sell hardware for people to use your service, you can now sell that at a loss and recoup the loses via the subscription.