• givesomefucks@lemmy.world
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    2 months ago

    If Streamers were smart, they’d lock pricing and change it for new signups.

    Their problem is numbers retention. People would hesitate to cancel if their $8 plan would have to be 15/month or more to restart.

    Moving everyone up, just pushes people to cancel, and they’ll be even more unlikely to come back if prices keep going up

    • dudeface@lemmy.world
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      2 months ago

      That sounds like terrible economics when you have hundreds of millions of customers who will likely just accept it

      • pdxfed@lemmy.world
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        2 months ago

        The cost in electronic services is in acquisition; the nominal cost to deliver services to a paying subscriber is lower than acquiring a new one.

        Yes you would flatten your margin with existing customers by not hiking their rates (or not as much) but pretending there won’t be defection assumes near monopoly–which the US has permitted largely for the last 4 decades.

        Cell phone companies made it super easy to leave by only offering good discounts to new customers.

      • givesomefucks@lemmy.world
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        2 months ago

        Then you don’t understand why long term reliable customers are better than intermittent ones…

        Which means you don’t know anything else about business, and are just going off vibes