> Just because outliers can be money-losing doesn’t mean you should raise the price for everyone.
If they are losing money then it's not priced correctly. That's what I responded to.
Yes, subscriptions work as you say. Plenty of people under utilize subscriptions from prime, to credit cards, to netflix. But if they lost money overall, they too would raise prices. Because that's how economics works. Shortage of capacity, high demand, raise prices until equilibrium.
There's other knobs beyond ToS. They just didn't choose those options.
alt Hacker News
> Just because outliers can be money-losing doesn’t mean you should raise the price for everyone.
If they are losing money then it's not priced correctly. That's what I responded to.
Yes, subscriptions work as you say. Plenty of people under utilize subscriptions from prime, to credit cards, to netflix. But if they lost money overall, they too would raise prices. Because that's how economics works. Shortage of capacity, high demand, raise prices until equilibrium.
There's other knobs beyond ToS. They just didn't choose those options.