• nova_ad_vitum@lemmy.ca
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    1 year ago

    With a recurring fee model, it’s in the business’s interest to make you use their service less while still paying, because if you use it too much they lose money, and if they price it according to how the power users use it then it won’t be a competitive deal.

    You know I never thought of streaming services this way, but you’re absolutely right. Any service running on a regular subscription model falls into the “gym business model” where the ideal customer is one who is paying but never showing up. That way, their operational costs stay constant while revenue goes up.

    • UnspecificGravity@lemmings.world
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      1 year ago

      Except its a LOT easier to get people to not go to the gym than it is to stop them watching TV and movies.

      I think this is why Netflix keeps canceling shows. People stay subscribed for new things, but since their catalog is shit they aren’t streaming much else.