Nuanced post. Than you!
I’m not disagreeing with you—the conclusion these services have taken are indeed not logical ones based on historical trends—but I’m curious how you know these services didn’t need to raise the fees? Why have you assumed that it’s to “grow infinitely”?
From my understanding, almost all streaming video providers except Netflix have been operating on a loss. That can only be sustained for so long before the parent company will need to see it begin to generate a positive revenue stream. The most straightforward way to do that is to increase subscription fees. Furthermore, the number of subscribers of Paramount+, MGM+ or even Disney+ is certainly not trending towards “infinite growth.”
I’m not justifying anything, because with five monthly services that have been hiking prices I’m looking at what to slash myself, but I was eager to encourage a bit more discourse on this topic.
Tristan@lemmy.ca 11 months ago
poopkins@lemmy.world 11 months ago
Why is this being downvoted? I thought Lemmy was a place for discourse? How does this not contribute to an open discussion?
homicidalrobot@lemm.ee 11 months ago
Pretty common take that people feel like they’ve seen and argued in a lot of other places. In the future, ask YOURSELF why you got downvoted, not the thread. Works way better.
poopkins@lemmy.world 11 months ago
I have genuinely asked myself this, and can’t help but find it strange that the only comments in this thread and other almost identical threads are effectively complaining about corporate greed, and never go into any kind of depth about underlying causes and contributing factors.
Why instead is the same old empty rhetoric repeated and upvoted time and time again? This platform seems to be an echo chamber for ignorance.
gohixo9650@discuss.tchncs.de 11 months ago
and never go into any kind of depth about underlying causes and contributing factors.
sure, if you don’t agree with what is being replied to you, then these are shallow comments. Your replies here were the deep analysis. Good job
homicidalrobot@lemm.ee 11 months ago
You misunderstand me. Your posts are the old empty rhetoric, your ideas are not new, and you come off like a parrot. After your long-winded explanation, I get the idea that you’re just young, which personally makes me want to interact with you less.
gohixo9650@discuss.tchncs.de 11 months ago
then their model is flawed. They sell something at loss in order to attract customers because they know that if they sell it at higher profit margins customers will not come. Customers are willing to buy it as long as it is in a price that they are willing to compromise at. So, when they raise their prices, customers realize that now it is above the price they are willing to pay and step out. Their model is based on hoping that the customers will forget or be bored to cancel a subscription that they cannot afford anymore. However it is a subscription that they wouldn’t had been willing to buy in this price in the first place.
So, their initial market share and adoption rate was what it was because of the price of the subscription and the rate of price/value-of-product. Customers are not willing to pay double price and they wouldn’t had paid it in the first place. They are not loosing customers. They are not loosing potential profit. They are basing their numbers in a faked artificial audience that opted in only because it was a good deal in the initial price.
And while the free market evangelists would argue that the market would self regulate, you know what will they in reality do? Ask the government for stricter enforcement of anti-piracy laws because huge loss . Loss based on nothing but their imagination of imaginative potential profit based on “if everyone was continuing buying our product with the same adoption rate we would had X billions. So since we don’t have X billions, this is a loss”. Great math skills and applying of logic.
poopkins@lemmy.world 11 months ago
There are certainly consumers out there with this kind of mentality, but it’s a common sales strategy to lure new customers with a reduced subscription fee for the first months only. It evidently works, because businesses have been doing this long before SVOD services, or even the internet for that matter, existed.
I expect that indeed, a significant number of customers cannot be bothered to cancel a subscription once they begin to use it, or, put another way, perceive the value of it to be justified against the increased price. I don’t think it’s fair to call this a fake audience, because these are real users of which a certain percentage will be retained.
Another factor that probably weighs into this is the competitive race to the bottom among the many SVOD offerings that are available today. Users like you and me perceive a certain dollar amount as the maximum that we are willing to pay, but where does that figure come from? If you are a new player in this space, you are effectively capped to the current market price for subscription fees, whether or not that covers your costs.
The free market effect will gradually resolve this as services that are all currently operating at a loss will correct their price models, which is what I believe is currently happening.
gohixo9650@discuss.tchncs.de 11 months ago
Your claim that this is a tactic happening since for ever doesn’t take into account the differences between subscription model and traditional businesses. In traditional businesses, yes, a business may decrease the prices in order to lure customers, but this was never their business model. This was limited time “get to know us”. I don’t think there was for example any supermarket operating at loss for 5 years before they decide to “ok, lets put the real prices on the shelves now”.
of course it is a fake audience. The fact that some users will be retained doesn’t make the 100% of the audience real. And also by fake audience it doesn’t necessarily mean that the whole 100% of the audience is fake. However, when they present their numbers, and they claim that “because of piracy we lost 5 million subscribers” this is based on the 5 million subscribers who potentially would never be subscribers if they had their “real” price upfront, instead of a price in which they operate at loss.
However, when people are charged for piracy, they are charged based on imaginative loses who are based on a potential profit which would had been achieved if their 100% of customer base had been continuing paying a subscription which they would had never agreed paying if the price was not faked in order to attract them.
the free market will turn to the government to cover their losses and they will push for stricter anti piracy law enforcement. The free market evangelists just want a free to control market. I don’t think they will be “ok, customers are leaving after our latest increase in price, then let’s just decrease the price to get them back on board”
Littleborat@feddit.de 11 months ago
I am pretty sure they know how many accounts they will lose for every dollar they increase the price. It should be a net positive for them because otherwise they would not do it.
Enforcing terms and conditions that they previously did not is just another price increase in the grey area that is not directly perceived that way.
I agree that “Lost x amount to piracy” does not even make sense in that context. They know exactly what they are doing.
poopkins@lemmy.world 11 months ago
With regards to discounts to lure new customers, I was thinking about conventional subscription based services like newspapers or cable providers. It doesn’t seem unreasonable to me that in a sector with heavy competition, such services might be offered at an initial loss if data suggests that retained memberships can recoup it.
I misunderstood what you were referring to with a definition of “fake audience.” I wasn’t giving any merit to their claims about how it all ties to piracy, clearly that’s nonsense. I’m not completely following your train of thought with a “fake price,” though.
It’s possible this might result in a harsher stance on piracy again, that’s true. Realistically, though, I think it’s more likely that three things will happen: we as consumers will gradually recalibrate our cost expectations for streaming services, production corporations will cut costs with more reality type content, and smaller companies will either be bought up or go out of business as users settle on a deliberate few services to subscribe to.