2 ms·
A subscription model is not rent seeking. Most developers continue to work on their products and continue to provide customer support etc. If they don’t, you ca
by WA 4y ago
A subscription model is not rent seeking. Most developers continue to work on their products and continue to provide customer support etc. If they don’t, you can simply stop paying your subscription.
The lifetime value per customer isn’t infinite either. Most people don’t use a single software forever. A subscription kinda slices the LTV up and puts a premium on it for long-term users. It is an increase in price, hence every company loves it, but this isn’t rent-seeking.
- latexr 4y ago> If they don’t, you can simply stop paying your subscription. No, you cannot, because you completely lose access to the app. If it outputs a proprietary file format (e.g. Adobe apps), your data becomes hostage to the subscription even if you do not need new features, can no longer afford the price, or the developer changes the terms. Subscriptions take away control from users.
- hayst4ck 4y agoI didn't say it is rent seeking, I said it incentivizes rent seeking. It incentivizes taking money without creation of new value. Subscriptions weaken the relationship between receiving money and creation of value. Money is received whether value is created or not. You can look at the app store to see all kinds of rent-seekers, so it is happening. Not all subscriptions are rent seeking, but I have a hard time imagining how someone would rent seek without charging via subscription.