We're Drowning in Subscriptions
bloomberg.com
bloomberg.com
Because it's not ironic.
A news publication being willing to publish articles critical of itself is a good thing. It means it's a healthy publication. Whether you like Bloomberg or not, we should be applauding it for being willing to publish self criticism.
I see this all the time when news agencies decry privacy on the web, yet their websites are often one of the worst examples for any kind of digital privacy.
If people are suffering from subscription overload, they could be less likely to consider a Bloomberg subscription than they would normally.
I get that for most people a Bloomberg subscription will never be on their radar, but between those people and the "must have Bloomberg" crowd, there will be a grey area of people who would really like to have it and can't quite justify it, to those who are sort-of interested and might get around to it if other things in their life align. Those are the people Bloomberg is working hardest to get to sign up. Therefore, if subscription fatigue is showing up as a reason that their subscriptions aren't growing as much as they'd like, looking into questions like "is this a problem?" and "what can be done about it?" is entirely within their wheelhouse.
It's not like Bloomberg is one of the subscription services that have popped up in the last 10 years. They're a "legacy" org at this point.
See, advertising was getting the bag for a while but that's crashing as people reject the constant surveillance that feeds it
Now that they hooked you though, they need to make sure to keep advertising backed levels of profit growth in order to ensure that stock prices continue to rise, so the only thing to do is....raise prices.
But shit, you don't pay anything now, or if you do it's too low to cover the spread and you won't like an annual dollar figure, plus if we have recurring revenue and dark patterns then we can make sure we just trickle and trick you into giving us way more than you ever would have if we had a regular subscription to start.
So it's pretty simple - it's the never-ending game of, how can we use the promise of infinite money (raising money) to find high margin profit for our investors, make switching costs hard and then deliver the minimum level of service to ensure that you don't get so fed up that you easily switch.
I’m curious about this. Is this an opinion or is there data to support this? I’m interested because my intuition (not supported by data) is that the average person doesn’t care about that kind of thing, and the most likely explanation is that the volume of advertising is getting absolutely ridiculous.
https://www.cnbc.com/2022/04/26/youtubes-huge-miss-shows-dig...
Yeah, it's an ages old game. It's called capitalism.
You can also read five different papers on five different days depending on which one strikes your fancy, leading to a more balanced news diet. A problem I'm having right now is that I want to get news from multiple sources, but I can't afford to subscribe to all of the major papers, I have to choose one!
I find that amusing.
https://lawandcrime.com/high-profile/new-york-times-makes-su...
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When I subscribe to something via my phone or Mac I always do it through apple, because they guarantee a painless cancellation. And this is despite the fact that on the Mac I purchase software outside the Apple Store when it’s an option. Managing subscriptions is that bad.
I just blocked the credit card payments and let them deal with their own shit.
As for Netflix, Disney+ etc I only pay if there's some show I will be watching. I nuke the account if there's no shows I will be watching. This is basic financial hygiene. Why pay for something you don't use?
If what you say is true, then subscriptions would get cheaper as more people subscribe, but that's not the case. They just pocket the profit.
Subscriptions allow companies to extract more money from their clients, which is , of course, what companies are meant to do. But don't give me that nonsense about making it a more fair alignment between cost and price.
The OP’s point could have been better phrased by stating that subscriptions provide an ongoing incentive for companies to support products to minimise churn. Yes they’ll extract almost 100% margin on recurring customers but it’s better than the alternative of one off payment structures where the company is incentived to minimise ongoing costs to the extent they can avoid legal troubles.
If you made a one off payment to a newspaper they’d be incentivised to write low cost articles forevermore because they’ll never get any more money out if you. If you make a one off payment for an OS there’s little incentive to bother with security fixes short of again litigation.
In both models minimizing cost is the goal. In your model the customer loses ownership which means after the break even period the company keeps getting paid vs the loyal user can keep getting usage for free. The customer loses control over the tool.
The subscription model is designed against loyalty and needs to cast a wider net they do this by offering free tiers and free periods where the hope is to hook the user. This gets them many low value users who are looking to extract as much value without paying and they will wait for black friday sales, subscribe for brief periods, share services or abuse free tiers.
Better for users to have a version that always works on certain operating systems than ongoing payments and out of your control system changes
Every couple of years “bundeling” becomes popular. Then, after some more years, people want to pay less and have more varied options, so “un-bundeling” comes in vogue again.
I guess we have now reached peak-unbundeling. We pay for everything separately, like video to Paramount+, Disney+, Netflix, PrimeVideo and so on. But already the cracks are beginning to show in this unbundled system.
I heard recently that Disney is open to licensing their content for other platforms again.
Not strictly ethical I guess but ¯\_(ツ)_/¯
What counts as “obligation” to you? You can also generally walk out of a restaurant without paying.
What I consider unethical is shoving them into my face in every way possible (frequently in ways to trick the user into clicking). I'd appreciate it more if ads were more like footnotes (with details on a separate page) that I'd visit and review if I wanted to.
Someone paid a fortune to put ads on busses to force me to see them. If I look away, am I somehow stealing from them?
But that moral argument is not the issue here.
Subscription services distill the marketplace for content that you can pay for. They make diverse media production prohibitively expensive, because customers can't afford to pay for a diverse collection of media when that collection is distributed across many subscriptions.
I guess Spotify and Copilot are okay if all you do is listen to music while writing code, but consider more common lifestyles:
- NYT & other media publications are common subscriptions.
- YouTube can be pretty hard to watch without YouTube premium. Given that it's a wealth of information for fixing your house, learning to cook, getting better at your job, or just pure enjoyment, seems well worth it.
- Netflix and/or {HBO, Hulu, Peacock, Disney+} are hard to beat given how much TV an avg American consumes per day. Yeah it's not great for you and yeah you can do piracy to save money but it's not unreasonable to have at least one of these subscriptions.
- iCloud if you want to back up your phone without plugging it in to your computer (or if you don't have a Mac but you have an iPhone). Google One if you use Google Photos a lot.
- Subscription vitamins, shaving razors, baby {food, diapers, toys}, groceries, ____ <insert other item you use frequently but is a consumable>, etc.
- Some folks support creatives by way of patreon or pay for newsletters by way of substack.
- Amazon prime, costco membership, nest/ring camera, nintendo switch online, other annual subscriptions.
- Web hosting & domain names are also common for YC readers, since you mentioned copilot :)
"We" could be anyone with some combination of subscriptions that bring value to their lives. It's definitely a lot of recurring costs to manage, and many don't do a good job of culling things that once brought them value but haven't lately (e.g. I only canceled my HBO subscription 3-4 months after realizing I wasn't using it).
I'm not saying I'm against subscriptions, everyone can do whatever they want with their hard earned money but don't understand why Bloomberg, of all things, would have a piece about it.
Different people have difference life choices. "We" in this context, definitely doesn't include everyone.
About your common lifestyles, see how I live just fine besides coding and listening to music (my opinion, my life, ymmv, etc):
* I read the news for free online.
* uBlock Origin + Sponsorblock extensions on Firefox and NewPipe app in Android. No ads.
* I don't use Netflix, HBO, etc.
* I don't use iCloud.
* I buy all my frequent consumables in the supermarket when they're almost running out. I use reminders on my calendar app.
* Patreon and so on is something I don't use but totally understand being something people want to do and that's cool.
* I don't order enough from Amazon to justify Prime, no Costco here, I have a Tesco clubcard but that's free.
* I don't have anything to host.
* I don't even buy books! Library is amazing, even lets me borrow ebooks to read in the Kobo ereader.
> Different people have difference life choices. "We" in this context, definitely doesn't include everyone.
> don't understand why Bloomberg, of all things, would have a piece about it.
The fact this article is generalizing just points to the impression that it's very common now to have many subscriptions (it's just not about you). Indeed I'd consider people having some combination of the services I mentioned as being more common than folks like you. I don't think it would be that hard for you to get that sense even with a limited sampling of folks you know; another way to know it's common is to just look at the raw subscriber #s for these services which is often available in their public financial filings, and divide that by an estimated # of households in the US or whatever country.
edit: anecdotally, self-hosting your own video content on plex helps enormously, and plexamp for music (carplay!) helps too
The only difference with a subscription is that it's not automated.
If a huge percentage of content is only available via subscription, it becomes prohibitively expensive to diversify the content you buy.
The only solution (apart from abandoning the subscription model) is for all subscription services to merge into a small number of media empires that each contain a diversified portfolio. This only serves to exasperate the original problem.
While it's true that one is forced more and more into subscriptions, there is still choice involved. I recently looked for a coin tracking tool, trialing about 5 different solutions and in the end went for the one that offered a lifetime deal.
Some businesses are waking up to this fact and potential competitive advantage, as are some indiehackers already.
Health insurance is an American thing, the rest of the developed world includes that in taxes.
Internet and mobile phone (and in my case, landline) are the most unavoidable subscriptions. They are also far more expensive than they ought to be.
But a home is not hard to live without? I'm just pointing out the contradictions in the comment.
> Health insurance is an American thing, the rest of the developed world includes that in taxes.
I'm French, but I can see on my pay stub how much goes to health insurance, and I have to pay for supplementary health insurance to cover beyond the basics. It's not an "American thing".
> Internet and mobile phone (and in my case, landline) are the most unavoidable subscriptions. They are also far more expensive than they ought to be.
Well, overpricing is an American thing then. I pay 10€/mo for unlimited calls, texts, data, and 25Gb roaming data, and 30€/mo for 5Gbps unlimited internet.
I think this benefits our users; it certainly benefits development, which can instead be led by more natural processes.
Seriously, I could probably not have spent the last 14 years working full time on Ardour if not for a subscription model to smooth out the income flow.
How?
I think that subscriptions to pay for software is deeply user-hostile, personally.
In terms of privacy, the Panera staff were shocked the first time I went through the drive through and my name came up as Mr. Panera Bread. They asked if I was the CEO. Obviously I changed the name to "Mr. Panera CEO". Now they know it's us and laugh.
Subscriptions are definitely becoming overkill, but in some ways it's also easier to manage recurring monthly expenses than random ones. I have a spreadsheet with monthly bills and creating a subscription section was easy. They all go on the same card (probably bad from a privacy perspective, but the names and emails are generally unique per vendor). Now I get better visibility and can easily change subscriptions. We chop and change pretty often reviewing what we spend on.
We've also used Amazon's Subscribe and Save for years. It's pretty handy to have a continuous supply of stuff that's regularly in demand. We review it every quarter or so and cut out the unused items. In the past failing to monitor it well has meant we have a dozen gallon sized Listerines, or more Tide than we'll use in a year build up, but then either it lasts, or we donate it to a food pantry.
What's odd with Subscribe and Save is how many weird and one-off products appear with a subscribe and save option. I'm not sure if it's hopeful merchants, or Amazon's funkiness in their algos, but you can find bizarre things on recurring subscription. No, I don't need a monthly Raspberry Pi, or quarterly set of speakers.
Instead of Monthly Billing, a Daily Alternative for SaaS: https://www.listennotes.com/blog/instead-of-monthly-billing-...
The problem with subscriptions is that they are for catalogues. In order for a subscription to have value, its catalogue must be diverse.
But what does that get us? A small number of services each with their own relatively diverse catalogue.
In other words: an oligopoly of media empires.
So my argument is that these subscriptions are better value for the money, provided you're sensible about it and don't subscribe to things you don't get value from.
Agree that reprimands have to be issued to services that have dark patterns.
Majority of businesses provide a very legit flow of getting in and then exiting.
When was the last time you tried canceling your Netflix and it wasn’t possible?
Or the same for your local newspaper?
As users we need to be mindful of what we consume. Bad habits of majority from smoking to drinking and now subscribing.
Someone makes a piece of software. What are they supposed to do, just close up shop and fire everyone when it's "done?" You need people to maintain the software. Fix bugs. Add new features.
The expenses for the company do not end. Therefore it can't operate if its revenues end. If every customer only pays money to the company exactly once, it would have to be an absurd amount for the company to be sustainable in the long run.
The only way it's going to work is if there's a steady predictable influx of cash, and that means subscriptions.
If someone thinks they have a real solution to this problem, message me. I want in on it.
Then you purchase one off, and as you enjoy it, it slowly will perish.
Relying on commercial developers to do everything strangles and ossifies culture.
Builders make a building. What are they supposed to do, just close up shop and fire everyone when it's "finished"? How could they survive if the customer paid exactly once for a building?
(To anticipate the "software lasts forever" argument: no, it doesn't, and it certainly doesn't last as long as a hammer. I doubt anything I'm running on my computer was built more than five years ago. There are SMBs running Windows 95 on a 386, but if they really bought something perfect for their needs 25 years ago, great!)
Of course not. You continue to develop and sell software, both new and new versions of the old.
> You need people to maintain the software. Fix bugs. Add new features.
Correct. That's why you sell subsequent versions.