One thing that bothers me personally is that nowadays everything is a membership, but what bothers me most about the subscription model is the fact that the price goes up and up indefinitely and many people really don't mind paying $2 or more a month.

I mean, let's take for example the case of Netflix (I know the image is old, but I couldn't find anything better), where it went from costing $7.99 in 2014 a month to $15.99 in 2019, literally double, and it will surely keep going up and up, if this trend continues and it surely will soon people will be paying $30 a month without any problem.

I understand that a market like Netflix (to follow the initial example) is an expensive market to maintain, both for equipment, staff and licenses and it is obvious that the economy is not the same in 2014 as it was in 2019, but how are people ok knowing that the price doubled in 5 years? If that continues in 2024 the price would be $30, and if it was people would still be fine paying it.

I don't use Netflix but I understand why people use it, both because of the recommendation algorithm and the simplicity, but damn, if in a year they say they are going to raise the price $5 a month people would be happy to pay it and I don't understand it, much less those who pay several memberships of the same type (Netflix, Hulu, Peacock, etc).

  • PKMKII [none/use name]
    ·
    1 year ago

    There was an interesting development on this front with Disney, who’s also jacking up prices. They had a package dispute with Spectrum, one of the largest cable providers in America. Basically, Disney wants to protect their walled garden of Disney+ so they were asking a ridiculous cut from Spectrum, who didn’t want to pay up that match.

    The compromise they came to was that Spectrum customers would only get the basic Holy Rodent Empire channels (Disney Channel, ESPN, maybe a couple others), but Spectrum customers then get access to a discounted rate on a Disney+ subscription. The specifics aren’t out yet, but it looks like it will apply to the ad tier of Disney+.

    Which says to me, the trajectory is for these services to become a sort of adjunct to cable, a replacement for on demand. Wouldn’t surprise me if the log-ins and interfaces start getting bundled into the cable boxes or router/modem boxes. Of course, it also wouldn’t surprise me if the net cost ends up being greater for consumers.