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> I think that paying based on usage encourages people to use less, use only if they are sure that it's valuable to them. With a subscription you feel the need
by n_ary 2y ago
> I think that paying based on usage encourages people to use less, use only if they are sure that it's valuable to them. With a subscription you feel the need to use more, just to not waste the money spent on the subscription.
On the contrary, businesses make more money from people paying the fee and not utilising the service enough.
If we moved to pay-as-you-go, the price would rise proportionally because the small fraction of 100% utilisation users would no longer get subsidised by forgetful folks forgetting their subscription or just hoping to use it occasionally.
Think about a small data center. A small portion of users will constantly blast away the VM at 90% CPU and saturate(use) the bandwidth while the majority will sit idle at 2-5% utilisation. If all VMs are being pushed to 90%+, the cost of operation goes up immediately and the price will go up to keep the margin healthy.
Not a decent example but hopefully gets my point across.
- rileymat2 2y agoThis is only the case if the high users are not canceled by the service upon being detected. Many businesses use this model where it is "unlimited" but they cancel customers that are using it in an unlimited way.