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My reasoning is that power users prefer subscription because they use the service more often or matter a fact very often. Casual users would perhaps prefer micr
by mrkramer 3y ago
My reasoning is that power users prefer subscription because they use the service more often or matter a fact very often. Casual users would perhaps prefer micropayments so for example you would rather pay a few bucks to watch one movie that interests you than go for $15 Netflix subscription just to watch that one movie.
Another interesting category is books; some publishers allow you to purchase certain chapters that interest you but the price of those chapters is obnoxious[0]. 30 euros for one chapter?!
I think the content producers and publishers need to embrace micropayments first and then demand will follow.
>The only true way around this is a token model. You make a large payment, but you use it for proprietary tokens that you can then "shop" around with for goods that you normally couldn't pay $0.50 for otherwise.
I had the same idea; for example you would deposit $5 and then use it for micropayments like 1, 5 or 50 cents.
Like somebody already mentioned, Steam does it already in a sense that you can for example buy skins for 50 cents.
Btw one of the ideas of Satoshi's Bitcoin was micropayments where you could pay for instance one thousand of a cent for some service. So called "cryptocoins" can very much be the future of payments and micropayments in particular.
>I imagine the issue comes from the fact that many consumers will simply buy 1-2 key things and then never come back.
That's why companies like subscriptions, they provide them with forward recurring revenue.
[0] https://link.springer.com/chapter/10.1057/9781403932754_1 https://link.springer.com/chapter/10.1057/9781403932754_1